EMC chief: Tech spending has bottomed out – Silicon Valley / San Jose Business Journal:

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“We believe the global IT spending environmen hasreached — or is very near — the said Joseph Tucci in a statement accompanying the Mass., IT infrastructure giant’s first quarter “We expect IT spending to improve in the seconed half of 2009 as customers will have better budget be further through their own restructurint programs and broader stimulus packages should be underway.” The comments come as EMC EMC) reported a 9 percent drop in revenuw year over year to $3.2 billion and a 23 percenf year over year drop in net income to $194.q1 million or 10 cents per share. Analysts were expecting earningw of 16 cents per shares on revenueof $3.3 billion.
Despitew Tucci’s statement, the company said its “best estimate” on global IT spending growth in 2009 is high single digite to lowdouble digits, with the vast majority of the growthg coming late in the Second quarter spending is expecteds to be flat compared with the first EMC Chief Financial Officer Davie Goulden said the company is taking additional cost cuttinhg measures that will save an additionalk $100 million this year. The cost savings will be a 5 percent cut in pay for all salaried employee and a 10 percent cut in pay to EMCboarsd members.
Earlier this year, EMC announceds a $350 million cost savingsw program that shaved the workforceby 2,400 The company also warned investors that the IT spending environment will result in lowee gross margins in 2009 compared with last year. One brighrt spot for the company was the performanceof VMW), which is majority owned by EMC. VMware’s revenue grew 7 percent year over yearto $470.4 Shares of EMC were down 21 centz to $12.45 in morning trading.