EMC to Cut 1,000 Jobs

The company says revenue for the fourth quarter and 2005 should reach record levels.
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Updated from 9:34 a.m. EST

EMC

(EMC)

lifted its guidance and said fourth-quarter and full-year revenue would reach record levels as customer demand for its data-storage systems remains robust.

The company also is planning to cut about 1,000 jobs in 2006, resulting in a charge of roughly $80 million that will be reflected in the fourth quarter.

The Hopkinton, Mass., tech firm expects revenue for the quarter of $2.70 billion to $2.71 billion. Excluding certain items, earnings should be 17 cents a share, at the high end of its previous guidance.

On average, analysts surveyed by Thomson First Call are looking for a bottom line of 17 cents and revenue of $2.69 billion in the quarter. EMC says 2005 revenue will likely total $9.65 billion to $9.66 billion, an increase of 17% from 2004. EMC plans to release its results on Jan. 24.

The company's fourth quarter will include a tax charge of about $175 million related to its repatriation of around $3 billion in foreign profits. All told, charges for the repatriation, the workforce reduction and the acquisition of Captiva will total around 11 cents a share.

When calculated by generally accepted accounting principles, fourth-quarter earnings will be about 6 cents a share.

Shares of EMC fell 25 cents, or 1.8%, to $13.73 Friday.