EMC Tumbles on Warning of Third-Quarter Loss
Updated from 8:03 a.m. EDT
EMC
(EMC)
was down 11.7% in midmorning after its announcement late Thursday that it would cut 10% of its workforce -- more than 2,000 jobs -- and probably report a third-quarter loss.
The company blamed a widening tech spending recession, further hampered by hesitation among corporations after the terrorist attacks last week. EMC notesd that the economy was not improving prior to the attacks.
Analysts are expecting the company to earn 1 cent per share in the third quarter and 4 cents a share in the fourth quarter, according to Thomson Financial/First Call.
The warning by the data storage giant weighed on tech stocks across sectors. Among bellwether technology issues,
Cisco
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was down 5.4%,
Intel
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was down 4.9%, and
Sun Microsystems
(SUNW) - Get Sunworks Inc. Report
, down 7.9%.
