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FOLLOWING IS THE EMC EARNINGS RELEASE FROM EMC'S HOME PAGE:
> > >EMC Reports Revenue Up 36%, Net Income Up 51% in First Quarter
Sharply Higher Demand Seen As Customers Build Internet Infrastructures Around
EMC Enterprise Storage
HOPKINTON, Mass. - April 20, 1999 - EMC Corporation (NYSE:EMC), the
world's leading provider of enterprise storage systems, software and services,
today reported strong increases in net income and revenue for the first quarter of
1999.
Revenue for the first quarter was $1.13 billion, 36% higher than the first quarter of
1998. Net income for the quarter was $221 million, up 51% compared with the
first quarter of 1998. On a diluted basis, earnings per share were $0.41 in the
quarter, compared with $0.28 in the first quarter of 1998.
Statements of Income and Balance Sheets (Consolidated)
Michael C. Ruettgers, EMC President and CEO, said, "We are delighted to report
that, for the eighth consecutive quarter, both revenue and net income grew by more
than 30% on a year-to-year basis. Our 51% increase in net income reflects
continued gross margin expansion resulting from the dramatic growth of our
software revenue."
"We understand there are concerns throughout the information technology industry
about the potential impact of the Year 2000 date change on IT spending patterns
later this year," Ruettgers continued. "EMC tracks customer spending plans very
closely through extensive formal surveys and constant customer dialogue. The
evidence we have collected in recent months points to continued robust demand
throughout the year, and indicates that there will not be a slowdown in spending
for EMC storage products during 1999. We are reiterating our previous forecast of
greater than 30% growth in both revenue and net income for 1999. The explosion
of both online and traditional data, and its increasing relevance to an organization's
ability to conduct business and grow, shows no sign of diminishing. "
"The opportunity ahead for EMC has never been greater," continued Ruettgers.
"Every major trend in information technology creates more information. Every
mouseclick on the Internet retrieves or creates data. The need to store and access it
day and night is making EMC Enterprise Storage a must-have foundation for any
major information infrastructure. We believe we are still at the beginning of the
demand that the new Internet economy will generate for enterprise storage."
EMC's leadership in Fibre Channel connectivity continued to expand during the
first quarter. Revenue from Fibre Channel-attached systems was nearly $280
million in the quarter, double the year-ago level. EMC has now shipped more than
$1.1 billion in Symmetrix Enterprise Storage systems with Fibre Channel
connectivity since first offering this technology in late 1997.
Highlights of the first quarter included the introduction of the EMC Enterprise
Storage Network (ESN), the world's first integrated, enterprise-class storage
network solution, including the EMC Connectrix system and management
software, new larger-capacity Symmetrix Enterprise Storage systems, and ESN
Professional Services.
(View the rewebcast of the ESN announcement)
Also during the quarter, EMC announced a 2-for-1 stock split, subject to
stockholder approval of an increase in the number of shares of authorized common
stock at the Company's Annual Meeting of Shareholders to be held May 5, 1999;
EMC formed the FibreAlliance, a group of leading providers of Fibre
Channel-based products working together to develop and implement common
methods for managing heterogeneous storage networks based on Fibre Channel
technology; EMC and IBM announced a technology and business alliance that
expands an existing relationship; and EMC was named one of America's five best
performing companies by both BUSINESS WEEK and BARRON'S.
EMC Corporation, based in Hopkinton, Massachusetts, is the world's technology
and market leader in the rapidly growing market for intelligent enterprise storage
systems, software and services. The company's products store, retrieve, manage,
protect and share information from all major computing environments, including
UNIX, Windows NT and mainframe platforms. The company has offices
worldwide, trades on the New York Stock Exchange under the symbol EMC, and is
a component of the S&P 500 Index. For further information about EMC and its
storage solutions, EMC's corporate web site can be accessed at
emc.com.
For more on EMC news, events, and recent media coverage go to news and events.
Note to editors: For further information about this release contact EMC Public
Relations at pr@emc.com.
EMC and Symmetrix are registered trademarks and Connectrix, EMC Enterprise Storage, and EMC
Enterprise Storage Network are trademarks of EMC Corporation.
This release contains "forward-looking statements" as defined under the Federal Securities Laws. Actual
results could differ materially from those projected in the forward-looking statements as a result of certain
risk factors, including but not limited to: (i) component quality and availability; (ii) delays in the
development of new technology and the transition to new products; (iii) competitive factors, including
but not limited to pricing pressures, in the computer storage market; (iv) the relative and varying rates of
product price and component cost declines; (v) economic trends in various geographic markets and
fluctuating currency exchange rates; (vi) deterioration or termination of the agreements with certain of the
Company's OEMs or resellers; (vii) the uneven pattern of quarterly sales; (viii) risks associated with
acquisitions; (ix) Year 2000 issues; and (x) other one-time events and other important factors disclosed
previously and from time to time in EMC's filings with the U.S. Securities and Exchange Commission.< < <
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