Storage giant EMC has raised its outlook for 2010 following news that earnings and revenue came in ahead of expectations for its fourth quarter
EMC reported fourth-quarter net income of US$426.5 million, or 20 cents a share, on revenue of $4.1 billion. This is up 2pc from a year ago. Non-GAAP earnings in the fourth quarter totalled $695.5 million, or 33 cents a share.
New York’s Wall Street was expecting earnings of 30 cents a share on revenue of $4.02 billion. EMC reported net income of $1.1 billion, or 55 cents a share, on revenue of $14 billion for 2009.
EMC projected 2010 revenue of $16 billion, compared to Wall Street estimates of $15.45 billion. Net income for the year will be 78 cents a share and non-GAAP earnings will be $1.12 a share, one cent ahead of Wall Street estimates.
Research and development spending at EMC this year will increase 20pc, the company said.
Overall, cost cutting, investments in areas like cloud computing, and a more positive outlook for IT spending have left EMC “stronger than ever financially,” EMC CEO Joe Tucci said in a statement.
EMC CFO David Goulden added that the company is “well positioned to continue to gain share.”