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EMC Bucks June Swoon

With competitors and partners struggling all around it, EMC Corp. (NYSE: EMC) managed to avoid the June slump that hurt other storage companies, but the vendor concedes a bit of a slowdown in high-end systems and storage software.

Today, EMC reported revenues of $1.97 billion and net income of $193 million, or $0.08 earnings per share. The results were in line with First Call consensus and EMCs previous guidance. The company’s revenue was 33 percent higher than the same period last year, and income was 136 percent higher.

For guidance, EMC forecast revenue of around $2 billion and EPS of $0.08 to $0.09 for the current quarter and maintained full-year targets of $8.1 billion in revenue and net income of $850 million.

EMC was among the first storage companies to report earnings this quarter, after weeks of warnings by others in the sector (see Emulex Hits the Deck, Veritas Takes a Dive, StorageTek Sings Sad Song, Overland Guides Under, Another Reason to Hate Compliance, and Quantum Gives Prelim Results). A common theme among those that warned was that sales slipped in the last two weeks of June. EMC CEO Joe Tucci told analysts in a conference call today that, outside of a few Documentum software deals, EMC didn’t feel the late June slowdown. Tucci said he stands by his previous bullish statements that IT spending will grow more than 4 percent this year, with storage spending increasing more than 7 percent.

“There was a lot of noise this quarter about a broad-based, end-of-June slowdown. To this, let me emphatically state that, with an exception of a handful of Documentum deals, we did not see this,” Tucci said. “We did not see big deals pushed. We did not see customers delay IT products.” He characterized IT spending growth as slow but steady.

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