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

To: charlief who wrote (12607)	4/19/2001 9:40:10 AM
From: Souze	Read Replies (1) \| Respond to of 17183

New chief of sales at EMC By Ross Kerber, Globe Staff, 4/19/2001 Data storage equipment maker EMC Corp. has replaced its top sales executive and is studying a major reorganization as it tries to recover its slowing momentum. Hopkinton-based EMC yesterday confirmed it has named Frank Hauck executive vice president for global sales, services and marketing. He takes over from Michael Ruffolo, who will remain executive vice president and will oversee a review of the firm's operations. The moves follow a warning by the company last week that it expects to fall short of previous profit and revenue targets. EMC is scheduled to release its full first-quarter results this morning. An EMC spokesman said the executive shifts don't stem from the company's recent financial slowdown. Hauck's new job is considered a key post at the company, which is known for the aggressive tactics of its 6,000-person sales force. But it can be a hot seat; Hauck is the third person to hold the position in two years. He was previously EMC's executive vice president for products and development. He succeeds Ruffolo, who joined EMC last year from Xerox Corp. Ruffolo will become a consultant to Joe Tucci, EMC's president and chief executive. In the new role, Ruffolo said he will study how EMC might reorganize itself as it grows beyond the $12 billion revenue goal it expects to reach by next year. In one scenario, Ruffolo said, the company's manufacturing and research divisions might be split into smaller business units designed to serve customer segments such as telecommunications companies or banks. Another option would be to increase its investment in services, he said. ''We still have a medium-sized company model, and we're not a medium-sized company anymore,'' Ruffolo said. Changes might be implemented by Jan. 1, he said. On April 11, EMC warned that it no longer expects to reach the $12 billion sales target this year, as it had previously forecast. EMC also said it would report first-quarter profit was 10 percent less than expected. It promised more details this morning. The company blamed the shortfalls on declining information technology spending by customers as the national economy falters. It still expects revenue to grow by about 20 percent this year, and said it would slow hiring and cut other spending in an effort to boost income. Hauck has worked for EMC for 11 years, most recently overseeing research and development for its enterprise storage equipment. Several other top executives who reported to him will now report to Tucci, EMC said. These include Moshe Yanai, a top engineer of EMC's Symmetrix products; Erez Ofer, senior vice president for software engineering; and, Dick Lehane, senior vice president of manufacturing. EMC said its information-backup division headed by Dave Cote will now report to Ofer. The division previously was overseen by David Donatelli, who remains in charge of new business development. Ross Kerber can be reached by e-mail at kerber@globe.com. This story ran on page 04 of the Boston Globe on 4/19/2001. © Copyright 2001 Globe Newspaper Company. boston.com