EMC reports profits down 75 percent in second quarter

Citing delayed purchases and canceled IT projects, storage systems maker EMC Corp. said earnings for the second quarter were down 75 percent.

And the Hopkinton, Mass.-based company, which in May slashed 4 percent of its workforce, or 1,000 employees, said the future for IT spending doesn't look all that good either.

"The global economic environment has become much tougher," said Mike Ruettgers, EMC executive chairman, in a statement today. "I cannot recall a more difficult environment in terms of technology spending than the one that has unfolded over the past few months. It is now expected that IT spending may shrink on a year-to-year basis for the first time in decades."

For the second quarter ended June 30, EMC reported earnings of US$109 million, or 5 cents a diluted share, compared with a profit of $429 million, or 19 cents a diluted share, in the same quarter last year. Earlier this month, EMC warned that its earnings for the second quarter would be between 4 and 6 cents a share on revenue of about $2 billion.

Total consolidated revenue for the second quarter was $2.02 billion, 6 percent less than the $2.15 billion posted in the same quarter a year ago.

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