But just a few hours before news of the guidance reduction broke, the storage giant quietly snapped up Luminate Software Corp. for $50 million in cash (see EMC Acquires Luminate).
So what's it playing at?
Let's take it from the top. EMC says it's attempting to make the best of a dim economic situation. "The business world is simply covered in a blanket of hesitation," said Joe Tucci, CEO of EMC, in a prepared statement. He added that it is "highly unlikely" that EMC will break even in its fiscal third quarter.
That means EMC's revenues will be substantially lower than the $2.3 billion reported at this time last year. They will also be lower than the $1.8 billion in revenue that would have been required to meet First Call consensus quarterly profit of $0.01 a share.