EMC Announces Preliminary Second Quarter Results
Revenue Expected to Be Approximately $2 Billion
Earnings Per Share Expected to Be in Range of $0.04 to $0.06
HOPKINTON, Mass.--(BUSINESS WIRE)--July 5, 2001--EMC Corporation
(NYSE:EMC - news) today announced estimated revenue and earnings per share for the
second quarter of 2001, which ended June 30, 2001, based on preliminary financial results.
EMC expects total consolidated revenue to be approximately $2 billion, and earnings per
share to be in the range of $0.04 to $0.06 for the second quarter. EMC plans to announce
complete second-quarter results on the morning of Wednesday, July 18, 2001.
``EMC's business is being impacted to a degree with each unanticipated downward step in
the global economy. It now appears that there are fewer dollars being invested in information
technology than a year ago,'' said Joe Tucci, EMC's President and CEO. ``The earnings
results for EMC's major customers - the bulk of the S&P 500, for example - have been like
a ball rolling down a hill for each of the past three quarters. When our customers earn less
money, most of them have less to spend on IT, and they take a longer time to spend what
they do have. That means lowered revenue and profitability for EMC. We are helping
customers manage through their fiscal constraints by delivering more value for their storage
dollar than they have ever been able to obtain, but the associated impact on EMC's margins
is more significant than anticipated. Although this quarter was a disappointment, we
continued to close business at the expense of our competitors throughout the information
storage landscape.''
Bill Teuber, EMC Senior Vice President and Chief Financial Officer, said, ``Clearly, the
economic slowdown that began in the U.S. has now spread to virtually all international
geographies, which were further impacted by a strong U.S. dollar. As a result, sales cycles
have continued to elongate. We expect gross margins for the second quarter will be in the
mid-40 percent range, reflecting several factors: lower sales volume than anticipated,
customer incentive programs, and our competitive pricing actions. We will present further
analysis of the factors impacting gross margins in our July 18 conference call.''
``We generated a significant amount of revenue over the course of the final days of the
quarter,'' continued Teuber. ``We are in the process of closing the books and, therefore, the information presented in this
announcement is preliminary. We wanted to make sure we communicated as quickly as possible, but we will not be in a
position to comment further until we announce full second-quarter results on July 18.''
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