EMC will not return to profitability as expected in the second half of the year, company president and chief executive officer Joe Tucci said yesterday.
"The IT spending environment continues to be brutal," Tucci said. "The harsh reality of reduced budgets and the uncertainty of the economic and geopolitical climate are weighing heavily on business confidence, causing key projects and the corresponding IT spend to be delayed. We saw no significant change in the competitive environment during the quarter. We don't know when IT spending growth will resume."
EMC, which will announce its third-quarter results in two weeks, expects to post a loss of revenue of $1.25bn (£800m), marginally up on the $1.21bn recorded in the third quarter last year.