Here is some news I ran into while looking at HWP.
Since HWP is closing its disk manufacturing division, it should help even more in the future.
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EMC Corp. Says Reseller Pact Revs Higher Than Expected
By Audrey Choi
HOPKINTON, Mass. (Dow Jones)--EMC Corp. (EMC) has sold more than $100 million worth of storage systems in the first six months of the year through its reseller agreement with Hewlett-Packard Co. (HWP), said EMC Vice President Paul E. Noble Jr.
That significantly exceeds EMC's previous estimates of the revenue it would recognize from the agreement, Noble told Dow Jones. When the maker of computer storage systems announced in November 1995 that it would supply storage units to be sold with HP 9000 servers, it predicted the agreement would result in $160 million worth of revenue for full-year 1996.
Noble also said EMC will announce Monday that it is expanding its reseller agreement with Hewlett-Packard. In addition to providing storage for Hewlett-Packard's high-end servers, the Hopkinton, Mass., company will supply storage for Hewlett-Packard's 3000 series of servers, which are used for client/server applications, such as online transaction processing.
The reseller agreement with Hewlett-Packard is a major element in EMC's move into making storage for so-called open computer systems. Until 1994, EMC only made storage systems designed to work with mainframe computers.
In 1995, when EMC introduced its first products for open systems, it predicted the new business would generate revenue of $200 million in the first year and $400 million in 1996. It met its $200 million goal in 1995, and in early 1996 revised its estimate for the current year to $600 million. After the first quarter, it further upped its estimate to $750 million. The company has about $1.2 billion in mainframe storage revenue, officials said.
EMC also recently signed reseller agreements with NCR Corp. and Groupe Bull.
For the second quarter, EMC reported net income of $87 million, or 36 cents a share, on revenue of $545 million. Its earnings slightly exceeded analyst expectations of 35 cents a share.
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Vijay |
