Data-storage company EMC Corp. (EMC), which has agreed to be acquired by PC maker Dell Inc. for about $67 billion, forecast financial results for the third quarter below analysts' estimates, citing a higher than expected build in unshipped storage product orders.
Separately, EMC's virtualization software company VMware forecast financial results for the third quarter above analysts' estimates.
For the third quarter, EMC forecast reported earnings of about $0.25 per share, adjusted earnings of about $0.43 per share, and consolidated revenue between $6.05 billion and $6.08 billion.
On average, analysts polled by Thomson Reuters expect the company to report earnings of $0.45 per share on revenues of $6.25 billion for the third-quarter. Analysts' estimates typically exclude special items.
Zane Rowe, CFO of EMC said, "We also experienced a higher than expected build in unshipped storage product orders of approximately $100 million due to the timing of bookings in the third quarter; this impacted GAAP and non-GAAP EPS by approximately $0.02."
Meanwhile, VMware forecast third-quarter earnings of $0.60 per share, up 35 percent year over year, and adjusted earnings of $1.02 per share.
VMware projects third-quarter revenues of $1.672 billion, an increase of 10 percent from the year-ago period and up 14 percent in constant currency.
Analysts expect the company to report earnings of $0.99 per share for the quarter on revenues of $1.66 billion.
Jonathan Chadwick, chief financial officer, chief operating officer and executive vice president of VMware said, "I'm pleased with our overall Q3 results, with total revenue expected to exceed the high end of our guidance range."
The company expects license revenue for the third quarter to be $681 million, an increase of 7 percent from the prior-year quarter and up 11 percent in constant currency.
Despite Dell's acquisition of EMC, VMWare will continue to remain an independent publicly-traded company.
EMC closed Friday's trading at $27.86. In Monday's pre-market trades, the stock is adding $1.05 or 3.77 percent to $28.91.
VMW closed Monday's trading at $78.65. In pre-market activity, the stock is down $5.09 or 6.47 percent to $73.56.
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