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.

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

To: John Carragher who wrote (13767)	1/24/2002 8:36:14 AM
From: JakeStraw	Respond to of 17183

It's gonna be interesting to see how the market reacts to this report...

To: John Carragher who wrote (13767)	1/24/2002 10:10:31 AM
From: Gus	Read Replies (2) \| Respond to of 17183

As expected, Software (+45%) recovered more strongly than Hardware (+25%) with Services (+15%) steadily increasing. Within the Hardware number, however, Networked Storage increased 52% sequentially and now accounts for 60% of EMC's sales. Profitability is within reach even with modest sales improvement in the next 2 quarters since 2H02 is now expected to be stronger than 1H02. Cost-cutting produced $57M in quarterly cost savings in 3Q01 and $99M in quarterly cost savings in 4Q01 or a total of $157M per quarter. This puts EMC ahead of its plan of taking out around $200M per quarter in total expenses by the end of 2Q02 since headcount still has to go down from 21,400 in 4Q01 to 19,000 by the end of 2Q02. AutoIS is also gaining traction. EMC sold 200 copies of StorageScope and Replication Manager in the first 8 weeks of what Joe Tucci called the fastest ramp in EMC Software's history. WideSky is free and is now part of the basic ControlCenter framework, which ships with every Symm. If I'm not mistaken, EMC's fastest previous ramp in software was PowerPath which went from 2,000+ licenses in 1998 to more than 38,000 licenses in 2001. ControlCenter took longer to reach the 40,000 license milestone. EMC The Peak and the Valley 1999-2001 Storage Storage Storage Storage Y2Y/ Hardware Q2Q Software Q2Q Services Q2Q Total Q2Q FY1999 $4.6B - $ 822M - $ 362M - $5.7B - 1Q2000 $1.3B 0% 270M - 4% 116M 5% 1.7B 0% 2Q2000 1.5B 15% 350M 30% 134M 16% 2.0B 18% 3Q2000 1.6B 7% 332M - 5% 161M 20% 2.1B 5% 4Q2000 1.8B 13% 483M 45% 200M 24% 2.5B 19% FY2000 $6.2B 35% $ 1.4B 75% $ 612M 69% $8.3B 46% 1Q2001 $1.6B -11% $ 468M - 3% $ 232M 16% $2.3B - 8% 2Q2001 1.2B -25% 498M 6% 232M 0% 2.0B -13% 3Q2001 676M -44% 243M -51% 237M 2% 1.2B -40% 4Q2001 842M 25% 352M 45% 272M 15% 1.5B 25% FY2001 $4.3B -31% $ 1.6B 9% $ 972M 59% $7.0B -16%