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

To: JeffreyP who wrote (3232)	11/4/1998 4:09:00 PM
From: w2j2	Read Replies (1) \| Respond to of 17183

FRANKLIN, Mass., Nov 3 (Reuters) - EMC Corp (NYSE:EMC). on Tuesday detailed its multiyear strategy for creating networks of low-cost data storage devices capable of managing the explosion of corporate computer information and of meeting the need for employees to have immediate access to such data. At a press conference held at EMC's new, aircraft-hangar-sized assembly plant here, officials detailed their plans and introduced two new products to meet the mushrooming demand for storage on computers running Microsoft's (NASDAQ:MSFT) Windows NT and to make such systems secure. EMC sees the market for networked storage systems among large companies, governments and universities reaching $35 billion in three years. The company has committed to capturing nearly a third of that total on the road to becoming a $10 billion company in 2001, up from $2.9 billion in 1997. "EMC is bringing the network to enterprise storage," Chief Executive Michael Ruettgers said in an interview after the news conference. "We allow the customer to consolidate that data in a single place," he said, while still giving computer users rapid access to such information. He noted that an increasing amount of corporate data is located in isolated or incompatible computer systems, requiring huge investments in hardware and network equipment just to move the data around a company. By replacing such equipment with networked storage systems, EMC promises to speed the ability of a company to respond to customer requests, while relieving existing data network bottlenecks, substantially cutting technology costs, and thus improving a company's overall competitiveness. EMC calls its new method of storing data Enterprise Storage Networks. Specifically, the company introduced Tuesday new high-speed data hub connections that multiply the storage capacity of NT-based computers from Hewlett-Packard Co. (NYSE:HWP), Compaq Computer Corp. (NYSE:CPQ), Dell Computer Corp.(NASDAQ:DELL) and Siemens AG (FSE:SIEG). EMC also plans to offer within 30 days new storage software, called Volume Logix, that beefs up the security and reliability of NT-based computers, giving them some of the same features that mainframes and other machines traditionally entrusted with key corporate data have had. EMC also revealed the results of an annual survey of 848 corporate technology managers worldwide that showed nearly 70 percent of them already using Windows NT systems to handle key operations like customer service call centers, electronic commerce, and retail sales data processing. EMC commissioned market research firm Find/SVP to conduct the survey. EMC officials painted a vision of a time, perhaps as early as 2001, when computer users will simply be able to connect their computers directly into a wall plug to gain direct access to a network created solely for the purpose of more efficiently moving data around the organization. EMC calls this "universal data tone," a take-off on the phone industry's concept of universal dial tone that's available any time one picks up a phone receiver. Ruettgers said that expected industry advances in network bandwidth, or the capacity to transfer huge volumes of data, and agreement among rival data storage suppliers on common standards should lead to an acceleration of the networked data storage market in coming years. Enterprise Storage Networks would slash the need for companies to buy additional computer processors and network equipment to handle data storage transfers, as the storage devices themselves and software and network switches provided by EMC would move the data directly, Ruettgers said. EMC officials estimated that more than 30 percent of the data now handled by mainframe and other large computers and another 30 percent of the traffic that now runs over internal data networks would instead run over storage network systems that offer greater customer responsiveness at lower cost. EMC's compound annual growth rate in excess of 50 percent this decade and the vast emerging potential for its networked storage products has made the stock a favorite on Wall Street in recent years. While lesser known than names like Microsoft, Intel and Cisco, the company is considered by many analysts to be the "dominant" player in the market for large data storage. It's a term that Ruettgers says his company now studiously avoids amid increased U.S. government antitrust scrutiny of the industry and the Microsoft trial underway in Washington. He carefully noted that EMC's 35 percent share of its market, while well ahead of rival IBM, the No. 2 player in the market, does not meet the U.S. government definition of market dominance.

To: JeffreyP who wrote (3232)	11/5/1998 10:09:00 AM
From: Khris Vogel	Read Replies (1) \| Respond to of 17183

Jeffrey, per the 2Q98 10-K, the co. is authorized to issue 750m shares, of which 499,511,372 were o/s as of the 6/30/98 BS date. W/ employee stock options, etc., a 3:2 doesn't even look feasible until the co. seeks approval to increase the # of shares o/s. Bear in mind w/ the release of the 3Q98 10-K (which should be anytime now), the # of o/s shares will be higher than the previous qtr.'s balance. IMO, that's ok. What's the worst that can happen - by the time of the annual meeting next year, the stock price goes above 90, and mgmt. declares a 3:1 split vs. their normal 2:1?