Tuesday, October 17, 2006
EMC Corp. is cutting its work force by 1,250 jobs after a flurry of recent acquisitions -- a 4 percent reduction the data storage provider announced as it reported its third-quarter profit fell by a third from results that included a one-time tax benefit a year ago.
Although EMC's profit narrowly beat Wall Street expectations, the company's shares closed down 1 percent as the broader technology market retreated Tuesday on Wall Street amid unfavorable economic data.
Hopkinton-based EMC said net income for the July-September period was $283.7 million, or 13 cents per share. That compared with a profit of $422 million, or 17 cents per share, a year ago.
Revenue rose 19 percent to $2.82 billion from $2.37 billion a year ago.
The year-to-year profit comparison was clouded by a $106 million tax-related benefit that EMC enjoyed in the year-ago quarter, and EMC's move this year to begin counting employee stock options against earnings.
EMC's 13 cents-per-share profit in the most recent quarter beat the consensus estimate of analysts surveyed by Thomson Financial by a penny a share.
EMC said it will eliminate 1,250 jobs from its 31,000-person work force by the end of next year following 21 acquisitions over three years. The flurry of buying has cost EMC $7 billion, but helped move the company beyond its core storage hardware business into faster-growing data storage software and services.