EMC has joined the vendor ranks reporting drops in profits from the first quarter but its CEO has added his voice to those arguing that the recession has hit the bottom.
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Although Joe Tucci said that he expected global tech spending to increase in the second half of the year the slump in spending overall for the year would be worse than it had predicted.
In Q1 the storage vendor reported a 9.2% decline in revenue to $3.15bn with GAAP net income dropping from $251.6m to $194.1m year-on-year.
"As we look to the balance of 2009, we believe the global IT spending environment has reached, or is very near, the bottom. We expect IT spending to improve in the second half of 2009 as customers will have better budget visibility, be further through their own restructuring programs and broader stimulus packages should be underway," said Tucci.
He added that it was well positioned to take advantage of some of the emerging market trends including virtualisation and could computing.
Just over half of EMC's revenues came from the US and it benefitted from continued security demand for its RSA subsidiary and a strong performance from VMware, in which it has a majority stake.
Tucci is not alone in arguing that the market has hit the bottom of the recession and will start climbing out of it in the second half of the year. Similar views have been expressed by Intel's CEO Paul Ottelini.