Dallas, Texas 03/11/2014 (FINANCIALSTRENDS) – EMC Corporation(NYSE:EMC) is the Hopkinton based company which provides infrastructure support across the industry. The company has now expanded its services to include virtual infrastructure technologies as well.
The recent performance by this IT market provider has been notable on the stock market and has been receiving upgrades on the ratings.
EMC Corporation(NYSE:EMC) has been on the path to reinvent itself as a technology infrastructure and solutions provider. This has meant that over the past few months, the company has made changes to its core competencies, which are in storage hardware and support solutions. Given the move to higher value solutions which reside on virtual platforms, EMC Corporation(NYSE:EMC) has been keen on making the transition to newer platforms. The company has improved its storage solutions for this niche and will offer long-term potential of growth.
Besides, one cannot take away the good margins the company has been consistently reporting. The cash flows too have been supportive, with major revenue growth concerns persisting. The guidance for the first quarter of 2014, by the management has been below expectations. The target they appear to achieve is nearly 7% below the consensus average. Experts believe that the rather muted expectations are due to some policy changes the company expects to push through this quarter. The policy changes are largely seen in the manufacturing division. The changes will bring in higher efficiency and will improve the margins for the company, as well as lower the costs, especially for those which are subject to realization of orders.
But given the downward trend in storage solutions, it is yet to be seen how effective this solution would be for the IT infrastructure company. As many peers in this division fast track to solution matrices which are in line with virtual solutions, it is time EMC makes the transition at a faster pace, else suffer from market maturity for this niche.