Boston, MA 01/09/2013 (wallstreetpr) – EMC Corporation (NYSE:EMC) has announced the appointment of Mr.David Goulden as its chief executive of storage division, and he will now report directly to the chairman and CEO of the company Mr. Joe Tucci. Investors do not know what such an appointment means for the company at this point.
It is known that Mr. Tucci has pushed back his retirement to maybe till 2015. This means that EMC Corporation (NYSE:EMC) is quietly scouting for his replacement. The appointment of Mr. Goulden to the all-important division of information infrastructure and storage puts him in the league of potential succession candidates that include Mr. Pat Gelsinger who runs VMWare and Mr. Paul Maritz who is the CEO of Pivotal.
As to whether Goulden makes it to the podium leadership position of EMC Corporation (NYSE:EMC) remains anybody’s guess, however, what is clear is that he has the qualification to be a good CEO of the company. Mr. Goulden is an 11-year veteran at EMC and an expert in acquisitions and finance.
The future
Investors are looking for growth in EMC Corporation (NYSE:EMC). The company is making efforts to expand its revenue opportunities by all possible means including acquisitions. At the same time, the company needs to consolidate its operations to stem the runway losses. A leader with deep insight in finance and acquisition can help turnaround the company faster. But again this will depend on the state at which Mr. Tucci leave the company when he finally bows out in 2015.
Dealing with competition is the challenge for the company at the moment. It may require the management to resort to aggressive cost-reduction, so that good profits can be realized even with the present sales.
The past
A look at the past of EMC Corporation (NYSE:EMC) can help understand how the future will actually look like. The company reported lower than expected EPS in its last reporting which came in October. It also missed on revenue as it posted $5.54 billion when analysts were looking for $5.80 billion.
As mentioned earlier, EMC Corporation (NYSE:EMC) needs to fix its runaway cost and boost revenue to realize better growth. In the current situation, the stock seems to be under tremendous pressure.
