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

To: JDN who wrote (11723)	1/2/2001 3:12:45 PM
From: Gus	Read Replies (1) \| Respond to of 17183

I dont find that particularly enthusiastic!! What will their target be for 2001? If they cant meet their original forecast it will be the first time in my memory they didnt. JDN That is not what I meant, JDN. EMC is expected to book about $2.6 billion in revenues for 4Q00 which makes FY2000 = $8.9B. $8.9B x 35% = $12B for FY2001. $12B x 35% = $16.2B for FY2002. Storage revenues, however, are currently growing at more than 40% fueled by EMC's newest products with the declining Aviion server line currently constituting an estimated 3-4% drag on EMC's growth rates. My guess is that EMC is going to adjust to Regulation FD and provide jittery sellside analysts with more guidance as to the shape of the demand curve (back-end loaded? hockey stick?) for the next year or two especially in light of more evidence that the the global economy is cycling down. The $12B sales target for FY2001 is well within reach considering the growth rates of EMC's newest products and the accelerated pace of product development which, as I have detailed many times before, dovetail nicely with the concurrent product cycles in mainframes/servers, databases/applications and corporate networks. Recall also that in 1999, EMC upped its original $10B target for 2001 to the current $12B as the deployment plans of its large and diverse installed base became more visible.