EMC Reports 50% EPS Increase on Accelerated Revenue
Growth for First Quarter
EMC Storage Revenue Up 34% Over Year-Ago First Quarter
HOPKINTON, Mass. - April 18, 2000 - EMC Corporation (NYSE:EMC), the
world's leading provider of enterprise storage systems, software and services,
today reported accelerated growth in revenue and net income for the first
quarter of 2000.
Total revenue for the first quarter was $1.82 billion, 23% higher than the first
quarter of 1999. Net income for the quarter was $332 million, up 49% compared
with the first quarter of 1999. On a diluted basis, earnings per share were $0.30
in the quarter, 50% higher than the $0.20 earned in the first quarter of 1999.
These consolidated results include both EMC's storage business and its Data
General division, formed after the acquisition of Data General Corp. during the
fourth quarter of 1999.
Total storage revenue for the first quarter was $1.65 billion, 34% higher than
the first quarter of 1999. This accelerated growth was highlighted by 31%
year-to-year growth in enterprise storage systems revenue and 74%
year-to-year growth in enterprise storage software revenue.
Mike Ruettgers, EMC's Chief Executive Officer, said, "Rapid information
access is now widely regarded as the fuel for the world's economy, and
two-thirds of the world's most important information lives on EMC technology.
We had an exceptionally strong first quarter in all geographies, particularly the
Asia-Pacific region, which grew more than 60% over last year's first quarter.
We saw surges in demand from large companies such as The Home Depot,
Bertelsmann of Germany and Korea Telecom as they built their increased
Internet initiatives on the EMC E-Infostructure. We believe we gained market
share against all major competitors during the quarter, in both storage systems
and software as well as emerging segments such as storage area networks
(SANs) and network-attached storage (NAS)."
Revenue from Symmetrix systems with Fibre Channel connectivity was nearly
$600 million in the first quarter, more than double the level of a year ago.
"While other vendors continue to describe widespread SAN (storage area
network) implementation as a future," said Ruettgers, "we are experiencing the
first-mover advantages of offering the world's only complete enterprise-level
SAN." EMC's SAN revenues were more than $250 million in the first quarter,
up more than 60% sequentially compared with the fourth quarter of 1999.
Revenue from EMC Celerra, the world's premier enterprise-class
network-attached storage (NAS) system, also rose sharply, with
industry-leading sequential quarterly growth of about 40% compared with the
fourth quarter of 1999.
EMC's balance sheet also continued to strengthen, with cash and investments
totaling nearly $3.4 billion at the end of the quarter.
Other highlights of the first quarter included the formation of the ECOstructure
initiative, a new Internet infrastructure alliance with EMC, Cisco Systems and
Oracle; the announcement of a Strategic Global Alliance between EMC and
Microsoft; the signing of a major new reseller agreement with Comparex
Holdings Limited, a leading European IT solutions provider; and the ranking of
EMC among the five top-performing companies of the S&P 500 on the 2000
"BusinessWeek 50."
EMC Corporation (NYSE:EMC) is the world leader in information storage
systems, software, networks and services, providing the information
infrastructure for a connected world. Information about EMC's products and
services can be found at emc.com
For more on EMC news, events, and recent media coverage go to news and
events.
Note to editors: For further information about this release contact EMC Public
Relations at pr@emc.com.
EMC and Symmetrix are registered trademarks and Celerra and EMC E-Infostructure are
trademarks of EMC Corporation. Other trademarks are property of their respective owners.
This release contains "forward-looking statements" as defined under the Federal Securities Laws.
Actual results could differ materially from those projected in the forward-looking statements
as a result of certain risk factors, including but not limited to: (i) component quality and
availability; (ii) delays in the development of new technology and the transition to new products;
(iii) competitive factors, including but not limited to pricing pressures, in the computer storage
and server markets; (iv) the relative and varying rates of product price and component cost
declines; (v) economic trends in various geographic markets and fluctuating currency exchange
rates; (vi) deterioration or termination of the agreements with certain of the Company's resellers
or OEMs; (vii) the uneven pattern of quarterly sales; (viii) risks associated with strategic
investments and acquisitions; (ix) Year 2000 issues; and (x) other one-time events and other
important factors disclosed previously and from time to time in EMC's filings with the U.S.
Securities and Exchange Commission. |
