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Technology Stocks : EMC How high can it go?
EMC 29.050.0%Sep 15 5:00 PM EST
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To: John Carragher who wrote (13767)1/24/2002 10:10:31 AM
From: Gus  Read Replies (2) of 17183
 
As expected, Software (+45%) recovered more strongly than Hardware (+25%) with Services (+15%) steadily increasing. Within the Hardware number, however, Networked Storage increased 52% sequentially and now accounts for 60% of EMC's sales.

Profitability is within reach even with modest sales improvement in the next 2 quarters since 2H02 is now expected to be stronger than 1H02. Cost-cutting produced $57M in quarterly cost savings in 3Q01 and $99M in quarterly cost savings in 4Q01 or a total of $157M per quarter. This puts EMC ahead of its plan of taking out around $200M per quarter in total expenses by the end of 2Q02 since headcount still has to go down from 21,400 in 4Q01 to 19,000 by the end of 2Q02.

AutoIS is also gaining traction. EMC sold 200 copies of StorageScope and Replication Manager in the first 8 weeks of what Joe Tucci called the fastest ramp in EMC Software's history. WideSky is free and is now part of the basic ControlCenter framework, which ships with every Symm. If I'm not mistaken, EMC's fastest previous ramp in software was PowerPath which went from 2,000+ licenses in 1998 to more than 38,000 licenses in 2001. ControlCenter took longer to reach the 40,000 license milestone.

EMC
The Peak and the Valley
1999-2001
      
        Storage      Storage      Storage      Storage Y2Y/
        Hardware Q2Q Software Q2Q Services Q2Q  Total  Q2Q

FY1999   $4.6B    -   $ 822M   -   $ 362M   -   $5.7B   -

1Q2000   $1.3B    0%    270M - 4%    116M   5%   1.7B   0%
2Q2000    1.5B   15%    350M  30%    134M  16%   2.0B  18%
3Q2000    1.6B    7%    332M - 5%    161M  20%   2.1B   5%
4Q2000    1.8B   13%    483M  45%    200M  24%   2.5B  19%

FY2000   $6.2B   35%  $ 1.4B  75%  $ 612M  69%  $8.3B  46%

1Q2001   $1.6B  -11%  $ 468M - 3%  $ 232M  16%  $2.3B - 8%
2Q2001    1.2B  -25%    498M   6%    232M   0%   2.0B -13%

3Q2001    676M  -44%    243M -51%    237M   2%   1.2B -40%
4Q2001    842M   25%    352M  45%    272M  15%   1.5B  25%

FY2001   $4.3B  -31%  $ 1.6B   9%  $ 972M  59%  $7.0B -16%
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