EMC Restructures, Lowers Guidance

HOPKINTON, Mass. (TheStreet -- EMC(EMC Quote) has lowered its fourth-quarter and full-year guidance ahead of a $100 million restructuring charge.

EMC, which competes with Hewlett-Packard(HPQ Quote) and NetApp(NTAP Quote), revealed the change in an Securities and Exchange Commission filing on Tuesday.

EMC is revising its fourth-quarter GAAP earnings outlook from 21 cents a share to 16 cents and its full-year projection from 55 cents a share to 50 cents.

The charge will be incurred as part of a reorganization in EMC's international business. Specifically, this involves transferring certain assets from the firm's Data Domain and RSA acquisitions into a single EMC international holding company. EMC expects the restructuring to be completed in 2010.

Excluding items EMC reaffirmed its previous guidance, predicting fourth-quarter earnings of 30 cents a share and full-year earnings of 87 cents.

Analysts surveyed by Thomson Reuters have forecast fourth-quarter earnings of 30 cents a share and 88 cents for the fiscal year.

EMC beat analysts' estimates in its recent third-quarter results, buoyed by cost-cutting efforts and an a more confident IT spending climate.

EMC shares dipped 15 cents, or 0.89%, to $16.79 in extended trading.

-- Reported by James Rogers in New York