Tony, note that Reuttgers backed off his revenue growth guidance from last quarter, and stated that post the DGN acquisition, revenue growth would be lower than 35%. That wouldn't be so bad, but he also refused to tell us what the number would be. I think that is much more behind the sell off than the reported revenues, which were solid.
Pure back-of-the-envelope guess:
EMC revenues: $1,334mm. Let's say they grow at 35%. That puts 'old' EMC revenues at $1,800mm.
DGN revenues: Last Q was $356mm. Let's say the current quarter reports the same. EMC stated that DGN revenues might decline next year, I'll guess 5%, which would put DGN revenues next year for the quarter at $338mm.
Thus, total revenues on the quarter for 'new' EMC would be $1,690mm. Total revenues next year for the Sep quarter would be $2,138mm. That translates to 26.5% overall revenue growth. I bet that most analysts didn't model revenue growth that low for the overall compay. Although that would be pretty easy to guess before today (and indeed, I had guessed at similar numbers) perhaps people didn't want to believe it until Reuttgers pointed it out. |
