EMC How high can it go? Message Board

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Technology Stocks : EMC How high can it go?

EMC 29.05

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Sep 15 5:00 PM EST

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To: Pamina who wrote (7717)	9/21/1999 11:13:00 AM
From: GVTucker	Read Replies (1) of 17183

Pamina, RE: Hope one of you really smart posters here (like maybe GVTucker) will be able to come up with an answer. I am highly confident that there are many on this thread much 'smarter' than I. I'm pretty sure that the compliment was primarily intended to elicit a response; it worked. Regarding R&D, EMC has guided estimates to around 8¬% of revenues for the next two quarters. If you take the average revenue estimates, that translates to around $115mm for 3Q and $135mm for 4Q. The model I have in front of me (from MS) uses 8.3% as an R&D estimate. As far as how this compares to the competition, note that the most significant competition (e.g. IBM or Sun) are not pure plays in storage and thus are poor comparisons. Looking at the purest comparison, NTAP (a little different, I know, but still a pure storage play)--NTAP consistently spends about 10«% of revenues on R&D. A little higher relative to revenues, yes, but on an absolute basis, not even close. It's less than $10mm per quarter, although this number is growing fast.

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