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

To: Clifford T. Tanaka who wrote (6223)	5/4/1999 8:04:00 PM
From: stock bull	Read Replies (1) \| Respond to of 17183

Clifford, if I remember correctly, Hitachi has good products, but lacked in the marketing/sales areas. This may account for their agreement with HWP. Stock Bull

To: Clifford T. Tanaka who wrote (6223)	5/4/1999 8:05:00 PM
From: kendall harmon	Respond to of 17183

EMC-overdone on the downside, and looking for a bounce tomorrow. EMC sees no negative impact from H-P/Hitachi deal By Nicole Volpe NEW YORK, May 4 (Reuters) - EMC Corp. on Tuesday repeated that it did not expect earnings growth below 30 percent in 1999, despite talk a major customer was considering switching to a competitor's data storage products. Analysts believe the customer, Hewlett-Packard Co. (HWP - news) is close to signing a deal under which Hitachi Data Systems would join or replace EMC as a provider of data systems for sale alongside H-P products. ''We don't see this impacting our 1999 net income or revenues,'' said EMC's head of sales and marketing Robert Dutkowsky. Hewlett-Packard said it would make an announcement related to data storage on Wednesday and declined to confirm any details of an H-P agreement with Hitachi Data Systems, a unit of Hitachi Ltd. of Japan. Merrill Lynch analyst Steve Milunovich pointed out in a research note Tuesday that H-P recently renewed for three years its reseller deal with EMC (EMC - news). ''Our assumption is that H-P will sell both but may favor the Hitachi product,'' wrote Milunovich. ''H-P has been chaffing at EMC's increasing account control for some time and recently suggested an OEM, or original equipment manufacturer arrangement (in which the product would be branded as H-P).'' A Hewlett-Packard spokeswoman declined to comment on the reseller arrangement, saying there would be an announcement Wednesday morning. She did confirm that there was a three-year reseller contract recently renewed with EMC. Dutkowsky confirmed that Hewlett-Packard had wanted an OEM arrangement and said EMC declined, feeling the EMC brand was strong enough to sell directly, as opposed to when EMC made the deal with H-P four years ago. ''They'd like to brand our product with their logo,'' he said. ''We don't think we need to do that because our brand is strong.'' Sales of EMC equipment to H-P customers reached more than $700 million Last year, but Hewlett-Packard only contributed ''single digit'' percentages to EMC's revenues, Dutkowsky said. While Hewlett-Packard's customers account for up to 20 percent of EMC's revenue, it is a joint EMC-Hewlett-Packard sales force that sells to those customers, he said. EMC has nearly doubled its sales force over the past 18 months in preparation for more direct sales and believes the change could benefit the company. EMC's shares closed down $7.125 to $100 on Tuesday. EMC shares have been sliding since the middle of last month from a year high of $134.95 on fears that corporations are spending more on preparing for potential Year 2000 problems than on data storage.