Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Don't Drink the Kool-Aid Kids -- Ignore unavailable to you. Want to Upgrade?

To: AugustWest who wrote (353)	4/11/2001 8:07:52 AM
From: AugustWest	Read Replies (3) \| Respond to of 1063

Oops! says EMC. Let's see if they buy this one too! EMC Releases Preliminary Q1 Results; Growth Rate and Profitability Remain High, EPS $.02 Lower Than Consensus Business/Technology Editors HOPKINTON, Mass.--(BUSINESS WIRE)--April 11, 2001--EMC Corporation (NYSE:EMC) today announced preliminary results for the first quarter of 2001. EMC expects to report that total information storage revenue grew 37% compared with last year's first quarter, and total consolidated revenue grew 29%. Earnings are expected to be $0.18 per share for the quarter, $.02 below the current consensus of Wall Street estimates and 20% higher than the $0.15 per share earned in the year-ago first quarter. EMC plans to announce complete first-quarter results on the morning of April 19, 2001. NOTE: EMC will host a teleconference live on the EMC Investor Relations Web site (www.emc.com/ir) today at 8:45 a.m. EDT. A replay of the conference call will be available by calling 703-925-2435; access no. 5152215. The replay will be available from shortly after the end of the conference call through April 18. Factors contributing to EMC's growth rate included the continued high levels of demand for information storage and EMC's market-leading offerings, partially offset by tightened IT budgets and the effects of the economic slowdown on certain U.S. and European customers. Joe Tucci, EMC President and CEO, said, "We continue to see companies collect and store information at an aggressive pace. Revenues in the first quarter ended up softer than anticipated because of some purchase hesitation from our customers. We found some customers reluctant to spend budgeted IT money, given the abundance of negative economic news. EMC's value proposition is centered on helping customers generate revenues, enhance profits, improve service, and save money. We are working diligently to show both current and prospective customers how we can help them through challenging budget constraints. Our opportunity is building on those trusted relationships and accelerating our leadership position in the fastest-growing major sector of IT." Mike Ruettgers, EMC Executive Chairman, added, "While the economic situation has elongated EMC's sales cycle for the time being, we believe that widespread corporate re-budgeting for the year is now mostly complete. We expect that, coming out of the first quarter, most businesses have reduced growth expectations and budgets accordingly." According to market researcher International Data Corporation, global IT budgets are expected to grow 9% in 2001, compared with 12% growth in 2000. Bill Teuber, EMC's Senior Vice President and Chief Financial Officer, said, "We feel that we can continue to grow at more than double the rate of overall IT spending for the year 2001, or more than 20%. We are confident that we can do this profitably and gain market share. We are focusing on opportunities for cost reduction, but we will also continue to invest in R&D, customer service, professional services and quota-carrying sales personnel. Factoring in these expenses on a revenue growth rate of over 20%, we expect modest EPS growth for the year 2001, and we expect these efforts will even better position us for 2002 and beyond. We are confident that EMC's execution on revenue generation and cost control will produce these results." EMC's revenue categories contributed to the preliminary results of the quarter as follows: -0- T Category Preliminary Q1 Preliminary Q1 Y/Y Growth Rate Results (millions) Information Storage Systems 23% $1,564 Information Storage Software 73% 468 Information Storage Services 99% 232 --------------------------------------------------------------- Total Information Storage Revenue 37% $2,264 Other, including Aviion servers (52%) 81 --------------------------------------------------------------- Total Consolidated Revenue 29% $2,345 T Ruettgers concluded, "We see three important takeaways from the first quarter. One, EMC has dealt with adversity before and responds to tough challenges better than most. Two, we have the largest and strongest sales force in the industry, we have added thousands of new feet on the street over the past year and we are still ramping up their productivity. Three, despite the economic downturn, EMC was still able to grow information storage revenues at a very healthy 37% rate and take market share in a profitable manner. The confidence the world places in the growth prospects for the information storage market is well founded. Information storage is the fastest growing major segment in IT spending. EMC is the leader in IT's best market, and we are solely focused on executing on this opportunity." About EMC EMC Corporation is the world leader in information storage systems, software, networks and services, providing the information infrastructure for a connected world. Information about EMC's products and services can be found at emc.com. This release contains "forward-looking statements" as defined under the Federal Securities Laws. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in economic conditions in various geographic markets and fluctuating currency exchange rates; (ii) an unexpected decline in the revenue growth rate without a corresponding decline in costs; (iii) competitive factors, including but not limited to pricing pressures, in the computer storage and server markets; (iv) component quality and availability; (v) rapid technological and market change and the transition to new products; (vi) the relative and varying rates of product price and component cost declines; (vii) the ability to attract and retain highly qualified employees; (viii) the uneven pattern of quarterly sales; (ix) risks associated with strategic investments and acquisitions; (x) the Company's ability to execute on its plans; and (xi) other one-time events and other important factors disclosed previously and from time to time in EMC's filings with the U.S. Securities and Exchange Commission. --30--kc/bos* CONTACT: EMC Corporation Mark Fredrickson 508-293-7137 fredrickson_mark@emc.com or EMC Investor Relations 508-435-1000 KEYWORD: MASSACHUSETTS INTERNATIONAL CANADA INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS NETWORKING SOFTWARE EARNINGS Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com * end of story *