EMC Hits False Note

EMC(EMC Quote), a company that doesn't make too many mistakes, made a big one in the second quarter -- badly underestimating customer demand for a new product line -- and will not meet its revenue or earnings goals.

EMC said second-quarter revenue was about $2.575 billion, an increase of about 10% from a year earlier but below its previous projection of at least $2.66 billion.

In addition, the company now expects to earn 12 cents a share, which includes a 2-cent-a-share charge for option expense, a 2-cent amortization expense and a 1-cent tax benefit. EMC had previously expected it would earn 13 cents a share, including items.

Analysts polled by Thomson First Call were looking for a profit of 13 cents a share on revenue of $2.67 billion. ...