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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Greg Hull who wrote (38028)	1/16/2001 1:48:02 PM
From: Apollo	Respond to of 54805

EMC........ damn, you're tough to satisfy. <g> "the size of NAS will grow compounded annually at 75% between now and 2003. Yet, SAN growth will grow at ~ 90% between now and 2003." Ok, how about these 3rd Qtr Conference Call notes........ *EMC 3rd Qtr Conference Call notes:* Background & results  Global economy likes productivity it gets from IT spending, which constitutes > 50% of capital spending in the USA.  Spending on storage is becoming almost non-discretionary.  EMC seeing accelerating revenue and profit growth; presently, EMC has < 20% of the $44 billion market this year.  Storage growing at ~ 22%, whereas Server, PC and networking equipment is growing in the single digits; even handsets are growing at 16%. Bottom line, nothing in IT or high tech is growing faster than Storage.  Driving this, in part, is the buildout of fiberoptic networks, which dramatically reduce bandwidth costs, increasing bandwidth, and increasing the storage requirements. The relationship between bandwidth and storage represents a “virtuous cycle”.  EMC could have done better; because of parts shortages, they could have sold more systems.  Exceeded all financial goals this qtr. Gained market share in ALL segments of Storage, and in ALL geographies around the world.  Overall, 6 segments to the Storage market: High-end, Mid-range, Software, Services, Connectivity, & Network attached Storage. Altogether, these represent a $44 billion market. Only EMC presently provides a complete end-to-end solution for storage, from high end to low end.  Storage revs increased the most in 5 years, 47% to $2.1 billion, despite a components shortage.  Earnings increased 55% to a record $1.45 billion.  Sustained a 34% Qtr sequential growth in NAS; the size of NAS will grow compounded annually at 75% between now and 2003.  Yet, SAN growth will grow at ~ 90% between now and 2003.  Customer satisfaction: EMC finished #1  By 2003, EMC expects market to be $73 billion; EMC is growing faster than competitors, and expects market share overall to increase substantially during that time. Q&A  Components shortage: did not sell as many big systems as they could have; made up for this by increasing “upgrades”.  Has the weak Euro affected EMC? Revenue growth in Europe increased 39% in this last Qtr, but could have been higher except for the weak Euro.  IBM’s Shark systems have gained no ground on EMC.  Comments on Competitive Threats: in all 6 Storage segments, EMC is either the leader, or the fastest growing company in each segment. EMC remains the only company that is found in ALL 6 segments.  Little to no mention of Network Appliance.