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

To: USRX888 who wrote (3192)	10/20/1998 1:53:00 PM
From: JDN	Read Replies (2) \| Respond to of 17183

To all: Where is everybody?? EMC is going ballistic and no one shouting!!! Here's MUSIC to my ears: EMC CEO sees no let-up in rapid growth during 1999 By Eric Auchard NEW YORK, Oct 20 (Reuters) - EMC Corp. <EMC.N> said on Tuesday it continued to boost its share of the large computer data storage systems market in the third quarter and it remains positioned to grow 30 percent or more in 1999, even if spending on information technology slows for the industry. EMC Chief Executive Mike Ruettgers said in a conference call with reporters that the company was seeing new sources of demand for its data storage products but no signs of an overall slowdown in technology spending. A slowdown had been forecast by companies. "I do expect a line between winning and losing (information technology) suppliers to become more distinct in 1999," Ruettgers said. "For 1999 I'm continuing to be confident that our growth will continue at this rate," he said of EMC's annual revenue growth of at least 30 percent. EMC is poised to benefit from most of the major corporate technology spending trends, Ruettgers said. New software systems that link key business operations, electronic commerce, data warehousing projects and data consolidation all eat up huge amounts of data storage capacity, he said. As customers seek to fix their computers ahead of the Year 2000 date change, EMC also benefits from demand for the excess data storage capacity required in order to test the systems. However, responding to Wall Street concerns that Year 2000 work could create a glut of excess storage capacity after 1999, Ruettgers said that only 10 percent of EMC revenues this year and next are expected to come from Year 2000-related spending. The only blemish on EMC's third quarter was in the Asia-Pacific region, which accounts for 10 percent of the company's business. Revenues there fell 12 percent, or $10 million, compared with a year earlier. The decline marked a sharp turnaround from EMC's second quarter growth of 30 percent in the Asia-Pacific region. But Ruettgers said customer visits in Japan had left him "bullish" on the region. "We are actually expecting them to snap back during the rest of this year," he said. The Asia-Pacific slump was offset by year-to-year growth in excess of 35 percent in both the United States and Europe. "Everywhere we are competing we are gaining market share," Ruettgers said in response to a reporter's question. He said EMC has taken business from International Business Machines Corp. <IBM.N> and Hitachi Ltd. <6501.T> in the mainframe data storage systems market, and from IBM and Sun Microsystems <SUNW.O> in the UNIX-based data storage market. Total third quarter revenues hit $1 billion as growth accelerated 37 percent. Sales of data storage hardware systems grew 28 percent to $792 million. Data storage software jumped 136 percent to $118 million. The remainder came from services and installation work. Ruettgers said few companies in the S&P 500 will grow more than 10 percent in 1998, with only a handful at better than the 30 percent rate EMC has demonstrated. "The opportunities have evolved as we forecasted and we've executed well," he said of the company's continued growth. At midday, EMC shares were up $4.25 to $62.06 in active composite New York Stock Exchange trading, just shy of their historic high of $63.50. EMC CEO sees no let-up in rapid growth during 1999 By Eric Auchard NEW YORK, Oct 20 (Reuters) - EMC Corp. <EMC.N> said on Tuesday it continued to boost its share of the large computer data storage systems market in the third quarter and it remains positioned to grow 30 percent or more in 1999, even if spending on information technology slows for the industry. EMC Chief Executive Mike Ruettgers said in a conference call with reporters that the company was seeing new sources of demand for its data storage products but no signs of an overall slowdown in technology spending. A slowdown had been forecast by companies. "I do expect a line between winning and losing (information technology) suppliers to become more distinct in 1999," Ruettgers said. "For 1999 I'm continuing to be confident that our growth will continue at this rate," he said of EMC's annual revenue growth of at least 30 percent. EMC is poised to benefit from most of the major corporate technology spending trends, Ruettgers said. New software systems that link key business operations, electronic commerce, data warehousing projects and data consolidation all eat up huge amounts of data storage capacity, he said. As customers seek to fix their computers ahead of the Year 2000 date change, EMC also benefits from demand for the excess data storage capacity required in order to test the systems. However, responding to Wall Street concerns that Year 2000 work could create a glut of excess storage capacity after 1999, Ruettgers said that only 10 percent of EMC revenues this year and next are expected to come from Year 2000-related spending. The only blemish on EMC's third quarter was in the Asia-Pacific region, which accounts for 10 percent of the company's business. Revenues there fell 12 percent, or $10 million, compared with a year earlier. The decline marked a sharp turnaround from EMC's second quarter growth of 30 percent in the Asia-Pacific region. But Ruettgers said customer visits in Japan had left him "bullish" on the region. "We are actually expecting them to snap back during the rest of this year," he said. The Asia-Pacific slump was offset by year-to-year growth in excess of 35 percent in both the United States and Europe. "Everywhere we are competing we are gaining market share," Ruettgers said in response to a reporter's question. He said EMC has taken business from International Business Machines Corp. <IBM.N> and Hitachi Ltd. <6501.T> in the mainframe data storage systems market, and from IBM and Sun Microsystems <SUNW.O> in the UNIX-based data storage market. Total third quarter revenues hit $1 billion as growth accelerated 37 percent. Sales of data storage hardware systems grew 28 percent to $792 million. Data storage software jumped 136 percent to $118 million. The remainder came from services and installation work. Ruettgers said few companies in the S&P 500 will grow more than 10 percent in 1998, with only a handful at better than the 30 percent rate EMC has demonstrated. "The opportunities have evolved as we forecasted and we've executed well," he said of the company's continued growth. At midday, EMC shares were up $4.25 to $62.06 in active composite New York Stock Exchange trading, just shy of their historic high of $63.50.