EMC Corp.'s (EMC) second-quarter earnings slid 43% as information-technology customers continued to pare spending, though the company's outlook - its first amid the downturn - offered a sign that market conditions may be stabilizing.

In its forecast for 2009, EMC projected results above analysts' expectations, sending shares up 4% to $14.98 in pre-market trading.

Second-quarter results also topped estimates.

"This marks another quarter of solid execution," said EMC President and Chief Executive Joe Tucci in a prepared statement. "When IT markets resume to more normal spending rates, we expect EMC will return to generating double-digit revenue growth."

EMC has declined to give a formal outlook since the start of the year due to the unclear economic picture. Expectations for tech spending were murky at best as companies slashed budgets in the face of the global slowdown.

But in offering some guidance on the company's prospects, EMC signals that the tech market is at least returning to more predictable conditions.

"We're back to providing some level of full year guidance, and that is probably viewed very positively by investors," said Jefferies & Co. analyst Bill Choi.

For 2009, EMC sees earnings of 82 cents and revenue of $13.8 billion, both including its pending $2.2 billion acquisition of Data Domain Inc. (DDUP). Analysts surveyed by Thomson Reuters projected 78 cents and $13.49 billion, respectively.

Also, third-quarter revenue is seen rising 2% to 3% from the second quarter's $3.26 billion. Analysts anticipated $3.38 billion.

For its part, Hopkinton, Mass.-based EMC pushed aggressive cost-cutting since the start of the year, announcing in January it would eliminate 2,400 jobs to save $350 million. It said in April it would reduce costs by another $100 million. It has asked employees to take a 5% pay cut but didn't foresee additional layoffs.

In the second quarter, EMC's earnings fell to $205.2 million, or 10 cents a share, from $360.1 million, or 17 cents a share, a year earlier. Excluding restructuring and other costs, profit fell to 18 cents from 24 cents.

Revenue dropped 11% to $3.26 billion, or 8% excluding currency changes. Revenue from VMWare Inc. (VMW), in which EMC holds a majority stake, contributed $455 million to the top line.

Analysts polled by Thomson Reuters expected per-share earnings of 16 cents on revenue of $3.2 billion.

 
   -By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155; jerry.dicolo@dowjones.com

(Melissa Korn and Kevin Kingsbury contributed to this report.)