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

To: Gus who wrote (12322)	2/23/2001 9:37:37 AM
From: JakeStraw	Read Replies (1) \| Respond to of 17183

Dane Lewis, Infrastructure: Systems and Software, Robertson Stephens ``Yesterday, EMC put out a press release that suggested softening of demand in its core storage business and essentially lowering their guidance for C2001,'' said Lewis. ``While the company maintains that Q1:01 is 'so far so good' and that it will continue to work towards their original goal of 35% revenue growth, EMC guided that revenue growth could be in the 25-35% range for C2001 due to the current IT spending environment. Management cited soft demand in North America and a ''drop-off`` in spending by Internet companies. We would add to these reasons pricing pressure on storage solutions due to more aggressive pricing from competitors and increasingly price-sensitive IT buyers in light of leaner budgets. We are further reducing our Street-low estimate for Q1:01 from $2.512 billion to $2.505 billion and our EPS from $0.22 to $0.21. For F2001, we are lowering our revenue estimate from $11.69 billion to $11.00 billion and our F2001 EPS from $0.99 to $0.91. While EMC shares have retreated 39% since the 1st of the year, we remain cautious on the name due to the uncertainty of macro-economic conditions and the lack of near- term catalysts.'' biz.yahoo.com