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EMC Misses on the Top and Bottom Lines; Shares Slip

James Rogers

NEW YORK (TheStreet) -- EMC shares slipped on Wednesday after reporting first-quarter results that missed Wall Street's top- and bottom-line estimates.

The storage giant posted revenue of $5.39 billion, up from $5.1 billion in the prior year's quarter, but below analysts' forecasts of $5.42 billion.

Excluding items, EMC earned 39 cents a share, up from 37 cents a share in the prior year's quarter. Analysts surveyed by Yahoo! Finance were looking for earnings of 40 cents a share.

EMC also announced plans to buy back $1 billion of the company's common stock in 2013.

Investors were underwhelmed by the results, pushing EMC's shares down 1.61% to $22 in premarket trading.

Revenue from EMC's Information Storage business grew 3% year over year, with high-end storage sales climbing 10% from the year-ago quarter. The company's RSA Security division grew its revenue 12% over the same period.

The Hopkinton, Mass.-based firm also reaffirmed its 2013 outlook, predicting revenue of $23.5 billion and earnings, excluding items, of $1.85 a share. Analysts surveyed by Yahoo! Finance are looking for sales of $23.46 billion and earnings of $1.86 a share.

After the markets closed Tuesday, EMC's VMware subsidiary reported 13% year-over-year revenue growth, although the virtualization specialist's shares fell on weaker-than-expected revenue guidance.

VMware shares were off 5.81% to $71.30 before market open.

Early on Wednesday, GE also announced plans to make a strategic investment of about $105 million in Pivotal, a specialist cloud company created by EMC and VMware. GE's investment represents a 10% equity stake in the company.

--Written by James Rogers in New York.

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