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EMC revenue boosted by data storage equipment

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CIOL Bureau
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BOSTON, USA: EMC Corp's second-quarter revenue beat Wall Street projections as U.S. sales climbed 28 per cent boosted by strong demand for its corporate data storage equipment.

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The company, which said it is taking market share from rivals, expects to exceed previous forecasts for full-year profit and revenue, though it did not say by how much.

EMC's confidence in the face of the European debt crisis and potential slowdown in Chinese spending helped bolster hopes that spending on technology will weather any hiccups in the nascent global recovery.

The healthy outlook underscored the possibility of improved technology spending, which should disproportionately benefit bellwethers such as EMC over the coming quarters, FBR Capital Markets analyst Daniel Ives said in a note to clients.

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EMC's second-quarter profit, excluding items, came to 28 cents per share, slightly ahead of the average analyst forecast of 27 cents, according to Thomson Reuters.

Quarterly revenue climbed 24 per cent from a year earlier to $4.02 billion, ahead of the analyst forecast of $3.98 billion.

Shares in the Hopkinton, Massachusetts company were down 36 cents, or 1.84 percent, at $19.88 in premarket trading.

Net income more than doubled to $426 million, or 20 cents per share, from $205 million, or 10 cents, a year earlier.

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