Arik Hesseldahl

Recent Posts by Arik Hesseldahl

EMC 2013 Outlook Falls Short, Plans $75 Million Restructuring

EMC-miniShares of data storage company EMC are falling in pre-market trading this morning as the company reported quarterly earnings that beat expectations and disclosed plans for a corporate restructuring.

Earnings per share were 54 cents, compared with an estimate of 52 cents; sales were $6 billion versus an expectation of $5.98 billion. But its outlook for 2013 missed expectations. Earnings will be $1.85 a share this year, short of the $1.90 analysts were expecting, on expected sales of $23.5 billion.

EMC also announced plans for a corporate restructuring that will include a reduction in force, though it didn’t say how many people will be affected. The plan will be completed by the end of the first quarter of the year. EMC said it expects to take an $80 million charge for restructuring costs.

It also said that VMware, the software unit of which it is a majority shareholder, will also restructure in order to streamline its operations. It expects to take a charge in the range of $70 million to $80 million to reduce personnel. It said yesterday that job cuts could reach 900. Another charge said to be in the range of $20 million to $30 million will cover costs associated with exiting certain lines of business.

EMC shares fell more than 4 percent in pre-market trading to $24.10. Shares of VMware are down more than 18 percent to $80.36.

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work