Information storage systems provider
posted break-even results for the second quarter as customers continued to delay major IT spending.
The company said it earned about $1 million, or break-even on a per-share basis, in the quarter, compared to a year-ago profit of $109 million, or 5 cents a share. Excluding the after-tax reversal of a $28 million 2001 restructuring charge, EMC reported a loss of $11 million, or 1 cent a share. On that basis, analysts polled by Thomson Financial/First Call had been looking for a loss of 2 cents.
Revenue for the quarter was $1.39 billion, up 7% sequentially but down from $2.02 billion in the second quarter of 2001. Analysts had been expecting about $1.375 million. Software revenue was up 14% sequentially.
In a statement, the company said, "Economic conditions and customer spending patterns in the second quarter were very similar to the first. Most large companies continue to delay major IT projects, generally limiting their purchases to deployments that provide a rapid return on their investment."
EMC also added that it has reduced its cost structure, achieving an annualized run rate in excess of $1 billion.
Shares of EMC closed at $8.63 before the earnings release Wednesday.