Nasdaq News & Articles

The share price of EMC fell sharply on Tuesday, dropping 7% despite beating analyst predictions for Q4 earnings. The market was reacting to news that virtualization vendor VMware, which is 86% owned by EMC and has hitherto been a star performer, is enduring serious competitive pressures.

EMC’s fourth-quarter profits were up by one third over Q4 2006, and revenues jumped almost 20% over the same period to $3.83bn. This growth came largely from the software side of the business, which grew 20%, although the company also saw strong growth from its storage business. Meanwhile EMC’s professional services wing, a relatively minor division of the company, saw a stunning 27% increase in business.
EMC, which makes the Documentum Enterprise CMS, also released an initial financial forecast for 2008, showing an expected revenue growth of 13% to around $15bn.

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