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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (9879)	4/18/2000 10:12:00 AM
From: John Carragher	Read Replies (1) \| Respond to of 17183

from breakfast with the fool EMC on the Mark The enterprise storage system leader grew first-quarter profits 49%. By Richard McCaffery Enterprise storage system leader EMC (NYSE: EMC) said first-quarter net income hopped up 49% to $332 million, or $0.30 per diluted share, compared to $222 million, or $0.20 per diluted share, a year ago. Analysts expected the company to report earnings per share of $0.29. Sales increased 23% to $1.82 billion as the Hopkinton, Massachusetts company grew enterprise storage systems revenue 31% and enterprise storage software revenue 74%. The company's gross margins (which include cost of products and cost of services) increased to 57% from 48% a year ago as higher-margin software sales make up a bigger part of the mix, the company sells larger storage systems, and economies of scale continue working in its favor. That is simply an amazing year-over-year jump. It's worth noting that the company's torrid growth pace may be slacking off a bit in some areas as EMC gets larger. This doesn't mean EMC is any less of a lead steer than it was a year ago. On the contrary, it's gaining ground. Nevertheless, quarterly revenue growth slowed to 23% from 36%, and enterprise software revenue growth slowed to 74% from 136%. For more information on EMC, check out the Fool's Research area. fool.com