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

To: Bald Eagle who wrote (14040)	4/10/2002 5:08:04 PM
From: TraderEd	Respond to of 17183

From an unknown undocumented source. Subject: UPDATE 1-EMC sees data storage rebound, plays down IBM woes TOKYO, April 9 (Reuters) - EMC Corp EMC, the world's largest maker of data storage systems, still anticipates growth this year in data storage spending despite an ominous earnings warning from IBM, executive chairman Michael Ruettgers said. "We still expect to see positive growth this year both for IT (information technology) and storage spending," Ruettgers told a news conference. "Most of us believe the second half of the year will start to pick up. That's when you'll start to see some acceleration." Concerns about IT spending in the first quarter of the year were fanned after International Business Machines Corp IBM, a chief EMC rival, warned on Monday that its first-quarter results would fall far short of Wall Street forecasts. But Ruettgers played down IBM's bad news, suggesting it was a reflection of what was already known to be a difficult period for the market. "I think the IBM situation was simply that things finally caught up to them," he said. "Their services business had been covering a lot of the decline in product sales they had." At the same time, he acknowledged that market conditions remained difficult. "There's still uncertainty around the business," he said. "Most companies are reluctant to invest unless they have to." He said EMC did not plan any additional major restructuring measures after recent moves to reduce its cost base so that it could break even with revenues around $6 billion. He said the company eked out revenue growth in Japan last year on a yen basis despite a slide in its global revenues as the IT slump bit into earnings. He added the company's share of the Japanese market for data storage hardware had come within 1.3 percentage points of market leader Hitachi Ltd 6501.TK, which held a 20.7 percent share, and indications were that EMC would take the top spot this year. EMC's shares on Monday ended 2.9 percent lower at $10.80 after the IBM warning, after falling as low as $10.36, only a shade above their post-September 11 low of $10.30.