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

To: bob gauthier who wrote (3280)	11/30/1998 2:08:00 PM
From: w2j2	Read Replies (1) \| Respond to of 17183

By Jon G. Auerbach, staff reporter BOSTON -(Dow Jones)- Computer-storage vendor EMC Corp. expects a new reseller agreement with NEC Corp. to generate about $100 million in revenue over the next two years, a company official said Monday. The partnership is the latest in a string of reseller agreements that EMC (EMC) has signed in order to expand sales of its data storage systems. Among other partners, Hewlett-Packard Co. (HWP) is the largest. Under the terms of the NEC agreement, the Japanese computer maker will sell EMC storage products together with its computers. EMC said NEC (NIPNY) will sell storage mainly with computers that run on Microsoft Corp.'s (MSFT) Windows NT operating system. The EMC official said the anticipated new revenue would come mainly from Japan, where NEC does much of its business. The official said the additional revenue probably wouldn't change EMC's guidance to Wall Street, because the company has already laid out an aggressive revenue growth plan to analysts. Analysts expect EMC, which is based in Hopkinton, Mass., to record revenue of $3.9 billion this year. Next year, analysts expect that figure to grow to about $5.2 billion. The company had revenue of $2.9 billion in 1997. In October, EMC, defying concerns about soft technology spending in a dicey global economy, said third-quarter earnings soared 52% on a 37% revenue boost. The company reported net income of $201.3 million, or 38 cents a diluted share, compared with $132.6 million, or 25 cents a diluted share, in the year-earlier quarter. EMC also gave an ebullient outlook for the coming year, saying it expects revenue to grow by 30% or more and sales in Asia to pick up.