Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

EMC Slips on Symmetrix Transition

EMC today confirmed analysts' suspicions that sales last quarter failed to measure up to the company's previous forecast. (See EMC Misses Guidance.)

Four days ahead of its official earnings release Friday, EMC issued preliminary results of $2.575 billion in revenue for the quarter that ended in June. That falls below the revenue guidance of at least $2.66 billion EMC gave in April. (See EMC Hiccups, Waits for Clariion.)

While not a huge miss, the news comes after EMC missed its guidance for the previous quarter, and it follows the $2.1 billion acquisition of RSA Security that resulted in a steep drop in EMC's share price. (See Did EMC Overpay? and EMC Secures RSA for $2.1B.) While RSA will bring much sought-after security products to EMC, analysts have questioned the acquisition price.

CEO Joe Tucci blamed the revenue miss on a product transition to a new generation of Symmatrix high-end SAN systems. (See EMC Makes Good on DMX-3.)

"We received more customer orders than we anticipated very late in June for our new Symmetrix DMX-3 systems, and fewer than anticipated customer orders for our prior-generation Symmetrix DMX-2 systems, and we therefore did not have the right inventory mix to fulfill demand as we closed the quarter," Tucci said in a statement. "If we had been able to fulfill the strong Symmetrix DMX-3 demand and some of the other customer orders had come in a bit earlier, we certainly would have been able to meet our financial targets."

  • 1