EMC chief: Tech spending has bottomed out - San Francisco Business Times:

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“We believe the global IT spending environmenty hasreached -- or is very near -- the bottom,” said Josephj Tucci in a statement accompanying the Hopkinton, Mass., IT infrastructuree giant’s first quarter earnings. “We expect IT spendinvg to improve in the second half of 2009 as customerws will have betterbudget visibility, be further throughb their own restructuring programs and broader stimulus packages shoulf be underway.” The comments come as EMC EMC) reported a 9 percentg drop in revenue year over year to $3.2 billion and a 23 percentt year over year drop in net incomw to $194.1 million or 10 centx per share.
Analysts were expectintg earnings of 16 centa per share on revenusof $3.3 billion. Despite Tucci’z statement, the company said its “besft estimate” on global IT spendingt growth in 2009 is high single digits to low double with the vast majority of the growth coming late in the Second quarter spending is expected to be flat compares with thefirst quarter. EMC Chiefv Financial Officer David Goulden said the company is takintg additional cost cutting measures that will save anadditional $100 millionj this year.
The cost savings will be a 5 percentg cut in pay for all salaried employeesd and a 10 percent cut in pay to EMC board Earlierthis year, EMC announced a $350 milliomn cost savings program that shaved the workforce by 2,40o0 jobs. The company also warned investors that the IT spendingf environment will result in lower gross margines in 2009 compared withlast year. One bright spot for the companu was the performanceof (NYSE: VMW), which is majoritgy owned by EMC. VMware’s revenue grew 7 percentt year over yearto $470.4 million. Sharex of EMC were down 21 centsto $12.44 in morning trading.