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Strategies & Market Trends : Market Gems-Trading Strong Earnings Growth and Momentum -- Ignore unavailable to you. Want to Upgrade?

To: kendall harmon who wrote (4436)	2/12/2001 9:47:13 PM
From: puborectalis	Read Replies (1) \| Respond to of 6445

EMC's Ruettgers reaffirms guidance February 12, 2001 04:26 PM ET by Michelle Rushlo Data storage giant EMC (EMC) should still reach revenue targets of roughly $12 billion this year, Executive Chairman Mike Ruettgers reassured investors at the Goldman Sachs Technology Conference today. EMC's stock has been under pressure recently, in part on concern that the storage industry is not as insulated from the economic slowdown as earlier thought. EMC stock's losses deepened today, falling more than 3 percent on cautious news from one of its suppliers, Emulex (EMLX). Emulex's stock was halved today after company officials warned continued order deferrals could keep revenues flat for the quarter. Ruettgers told investors that EMC probably contributed to Emulex's problems, but he didn't know to what extent. He said orders to Emulex were deferred because EMC built up inventory in December for a new product that is now being released. That means there will likely be a 6- to 8-week impact to the relationship with Emulex, he said. Ruettgers in his speech sought to reassure investors that data storage would continue its brisk growth rates despite slowing in other information technology markets. "We're nervous about the environment," he said. But after talking with customers, "we haven't seen any evidence that business is falling off." Two quarters of economic softness followed by growth in the second half of the year continues to be the consensus in the technology business, Ruettgers said. "Leaders will act as leaders this year, and others will regret hesitating to make the expenditures."