EMC Lowered Guidance for 2010 Profit

EMC Corp. published the following Form 8-K:

On December 30, 2010, EMC Corporation’s Board of Directors approved a plan to transfer its newly-acquired Isilon and Bus-Tech businesses to its international holding company.

This plan is intended to build upon and further facilitate EMC’s international expansion, reduce costs and continue improving the efficiency and effectiveness of the company’s worldwide operating structure by enabling these businesses to leverage EMC’s international sales and services organizations and back office infrastructure. Additionally, the businesses will be able to utilize EMC’s global Manufacturing Center of Excellence to oversee worldwide product manufacturing and its global R&D Centers of Excellence to further enhance their product offerings.

In connection with the reorganization, EMC incurred a non-cash charge of approximately $90 million in the fourth quarter of 2010. This charge was not included in the business outlook previously provided by EMC in its third-quarter earnings press release dated October 19, 2010, and as a result, EMC is making the following revisions to its business outlook for 2010 solely to account for the charge. Our outlook with respect to our consolidated GAAP diluted earnings per share is being revised from $0.91 to $0.87 for 2010. Our outlook with respect to our consolidated GAAP income tax rate is being revised from 20% to 24% for 2010. The charge will not impact our non-GAAP diluted earnings per share or tax rate or any of the other non-GAAP outlook provided in our previous press release.