EMC Earns Narrow Profit, Beats Estimates

The Hopkinton-based company said Wednesday that customers were showing moderate interest in a range of new hardware and software products despite continued weakness in the technology sector.

EMC, which last week announced plans to acquire Legato Systems in a deal initially valued at $1.3 billion, said it earned $82 million, or 4 cents per share, in the second quarter, compared with earnings of $1 million--essentially break-even on a per-share basis--a year ago.

Wall Street analysts surveyed by Thomson First Call expected EMC to earn 3 cents per share, and EMC said last week it would meet or beat that figure by a penny. In early trading on the New York Stock Exchange, EMC shares were trading down 92 cents, or 8.3 percent, at $10.15.

Revenue rose 7 percent to $1.48 billion from $1.39 billion a year earlier.

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Additionally, EMC said it also expects to earn 4 cents per share in the third quarter, in line with Wall Street expectations, and reiterated that it expects to be profitibale in the fourth-quarter as well.

For the first half of the year, EMC earned $116.9 million, or 5 cents a share, versus a loss of $76.1 million, or 3 cents a share, a year ago.

Revenue rose to $2.86 billion for the first half from $2.69 billion a year ago.