EMC Reports 37% Storage Revenue Growth, Expansion of Market Lead in First Quarter; Networked Information Storage Revenue up 158%; Software Revenue up 73%.Business/Technology Editors HOPKINTON Hopkinton is the name of several towns in the United States:
EMC Corporation EMC Corporation (NYSE: EMC) is an American Fortune 500 and S&P 500 manufacturer of software and systems for information management and storage. It is headquartered in Hopkinton, Massachusetts, USA. (NYSE NYSE See: New York Stock Exchange :EMC (1) (EMC Corporation, Hopkinton, MA, www.emc.com) The leading supplier of storage products for midrange computers and mainframes. Founded in 1979 by Richard J. Egan and Roger Marino, EMC has developed advanced storage and retrieval technologies for the world's largest companies. ) today reported strong financial results for the first quarter of 2001, reflecting its expanding lead in the worldwide market for information storage solutions, one of the fastest-growing business segments in today's economy. Information storage revenue for the first quarter grew 37% compared with the first quarter of 2000 to $2.26 billion. This strong quarterly growth was highlighted by 158% year-to-year revenue growth in networked information storage, which totaled $833 million during the quarter; and 73% year-to-year growth in information storage software revenue, which reached $468 million. Information storage-related revenue represented 97% of EMC's total consolidated revenue during the quarter. Total consolidated revenue for the first quarter was $2.34 billion, 29% higher than the first quarter of 2000. Net income for the quarter was $399 million, up 20% compared with the first quarter of 2000. On a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, earnings per share were $0.18 in the quarter, 20% higher than the $0.15 earned in the first quarter of 2000 (adjusted for a 2-for-1 stock split effective June June: see month. 2, 2000). Mike Ruettgers, EMC Executive Chairman, said, "In times like these companies are investing in EMC products and services in order to save money and deliver business impact. Information storage continues to be the fastest-growing major segment of IT, as the efficiency-boosting benefits of information consolidation, networked information storage deployment and storage management software tools become more widely appreciated. We believe that most IT budgets in the U.S. and many in international markets are now in their final firming stages for the year, reflecting both the current economic outlook and the realization (specification) realization - A UML semantic relationship between a classifier that specifies a contract and another classifier that guarantees to carry it out. [Handout by Mr. David Gillibrand]. that information is at the center of business." Joe Tucci Tucci is a surname, and may refer to:
1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have clear we gained substantial market share in Q1. Our highest growth is coming from the areas that deliver the greatest impact to customers: networked information storage and information storage software. We extended our already substantial lead in networked information storage, which encompasses both SANs (storage area networks) and NAS (1) See network access server. (2) (Network Attached Storage) A specialized file server that connects to the network. A NAS device contains a slimmed-down operating system and a file system and processes only I/O requests by supporting the popular (network-attached storage See NAS. ) implementations. Gartner (Gartner, Inc., Stamford, CT, www.gartner.com) The largest information technology consulting firm that specializes in research and analysis. Founded in 1979 by Gideon Gartner, it has grown through acquisitions, including Dataquest in 1995 and Techrepublic in 2000. Dataquest (Dataquest Inc., San Jose, CA, www.dataquest.com) A major market research and analysis firm in the information field. Dataquest offers market intelligence on more than 25 topics and provides conferences, annual subscriptions and custom research. reported this week that our #1 market share position in storage management software grew by almost six points to 25.5% in 2000, and our industry-leading 73% software growth in Q1 will only add to that lead." Tucci continued, "EMC is delivering what customers want. EMC has the products and services that help customers conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" tight budgets and labor resources while easing information management challenges. At a time when the economic climate has brought increased expense controls at most companies, nearly 4,900 customers and prospects from 970 different companies traveled to visit EMC's Executive Briefing Centers in Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. , Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. and Japan during the first
quarter. That was 54% more than in the first quarter of 2000, a leading
indicator Leading IndicatorA measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate. of storage spending as well as the rising interest in the EMC Offering. From the best hardware platforms Each hardware platform, or CPU family, has a unique machine language. All software presented to the computer for execution must be in the binary coded machine language of that CPU. Following is a list of the major hardware platforms in existence today. See platform. and the most functional set of software products, to the most advanced and open networked information storage solutions and unmatched customer and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. , the EMC Offering has never been more compelling." Highlights of the first quarter included EMC being named Wal-Mart  Editing of this page by unregistered or newly registered users is currently disabled due to vandalism. Supplier of the Year for 2000, the first time a technology vendor has
ever been chosen for this prestigious honor As a verb, to accept a bill of exchange, or to pay a note, check, or accepted bill, at maturity. To pay or to accept and pay, or, where a credit so engages, to purchase or discount a draft complying with the terms of the draft. , which is based on
collaboration Working together on a project. See collaborative software. and ongoing support; the introduction of the EMC
CLARiiON  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . (R) FC4700 networked storage system (code-named Chameleon chameleon (kəmē`lēən, –mēl`yən), small- to medium-sized lizard of the family Chamaeleonidae. About eighty species are found in sub-Saharan Africa, with a few in S Asia. ), completing the rollout of the world's first system able to be implemented in NAS, SAN, direct-attached or clustered environments; new ESN (Electronic Serial Number) A unique identification number built into a cellphone for security purposes. Manager software for mixed-vendor SAN environments and new SnapView and MirrorView software for CLARiiON; and the EMC Proven Professional Certification Professional certification, trade certification, or professional designation, often called simply certification or qualification, is a designation earned by a person to assure that he/she is qualified to perform a job or task. Program, which will train and qualify thousands of information storage professionals and certify cer·ti·fy v. cer·ti·fied, cer·ti·fy·ing, cer·ti·fies v.tr. 1. a. To confirm formally as true, accurate, or genuine. b. candidates for commonly accepted information storage management roles. EMC also launched its largest worldwide branding initiative ever, reinforcing EMC as "where information lives"; and EMC's CLARiiON IP4700 won the eWEEK
eWEEK (tagline: The Enterprise Newsweekly) is a weekly computing business magazine published by Ziff Davis Media, featuring editorials, reviews, lab tests and news. Excellence Award as the leading B2B (Business to Business) Refers to one business communicating with or selling to another. See B2B e-commerce, B2C and B2G. B2B - business to business infrastructure product. Also during the quarter, International Data Corp. (IDC) reported that EMC extended its market share lead in storage systems during 2000, gaining more share than any other supplier in every major segment of the worldwide information storage market; EMC rose to #216 on the FORTUNE 500 list of America's largest companies, and was named #1 in both 5- and 10-year shareholder return among all FORTUNE 500 companies; and in placing #12 on the BusinessWeek BusinessWeek is a business magazine published by McGraw-Hill. It was first published in 1929 (as The Business Week) under the direction of Malcolm Muir, who was serving as president of the McGraw-Hill Publishing company at the time. 50 ranking of the best-performing companies of the S&P500, EMC became the only company ranked among the top 20 in all five years since the list began. EMC Corporation (NYSE:EMC) is the world leader in information storage systems, software, networks and services, providing the information infrastructure for a connected world. Information about EMC's products and services can be found at http://www.EMC.com. This release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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) adverse changes in economic conditions in various geographic markets and fluctuating fluc·tu·ate v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates v.intr. 1. To vary irregularly. See Synonyms at swing. 2. To rise and fall in or as if in waves; undulate. v. currency exchange rates; (ii) an unexpected decline in the revenue growth rate without a corresponding decline in costs; (iii) competitive factors, including but not limited to pricing pressures, in the computer storage and server markets; (iv) component quality and availability; (v) rapid technological and market change and the transition to new products; (vi) the relative and varying rates of product price and component cost declines; (vii) the ability to attract and retain highly qualified employees; (viii) the uneven pattern of quarterly sales; (ix) risks associated with strategic investments and acquisitions; (x) the Company's ability to execute on its plans; and (xi) other one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. events and other important factors disclosed previously and from time to time in EMC's filings with the U.S. Securities and Exchange Commission.
EMC CORPORATION
Consolidated Statements of Income
(in thousands, except per share data)
(unaudited)
Three Months Ended
March 31, March 31,
2001 2000
Revenues:
Net sales $ 2,056,926 $ 1,625,447
Service and rental 287,869 197,151
2,344,795 1,822,598
Cost and expenses:
Cost of products 876,611 650,880
Cost of service 175,673 140,179
Research and development 224,040 161,780
Selling, general, and administrative 593,036 448,119
Operating income 475,435 421,640
Investment income 71,609 40,643
Interest expense (3,258) (6,871)
Other income/(expense), net 2,506 (636)
Income before taxes 546,292 454,776
Provision for income taxes 147,497 122,789
Net income $ 398,795 $ 331,987
Net income per weighted
average share, basic $ 0.18 $ 0.16
Net income per weighted
average share, diluted $ 0.18 $ 0.15
Weighted average
shares, basic 2,203,865 2,105,673
Weighted average
shares, diluted 2,248,773 2,236,181
As a % of total revenue:
Gross margin 55.1% 56.6%
Selling, general and administrative 25.3% 24.6%
Research and development 9.6% 8.9%
Operating income 20.3% 23.1%
Net income 17.0% 18.2%
EMC CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
March 31, December 31,
2001 2000
Assets:
Cash and short-term investments $ 2,408,820 $ 2,656,952
Accounts receivable 1,915,406 2,114,368
Inventories 1,067,336 1,024,964
Other current assets 394,088 303,767
Total current assets 5,785,650 6,100,051
Long-term investments 2,240,827 2,088,379
Property, plant and equipment 1,640,606 1,510,088
Other assets 788,446 839,281
Total assets $10,455,529 $10,537,799
Liabilities and equity:
Current liabilities $ 1,919,297 $ 2,113,647
Deferred income taxes 101,278 100,913
Long-term obligations 56,651 146,030
Stockholders' equity 8,378,303 8,177,209
Total liabilities and equity $10,455,529 $10,537,799
EMC CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
Proforma- December 31, 2000 reflects Spinoff of McData Corporation
March 31, December 31,
2001 2000
Assets:
Cash and short-term investments $ 2,408,820 $ 2,291,262
Accounts receivable 1,915,406 2,099,660
Inventories 1,067,336 1,001,859
Other current assets 394,088 291,068
Total current assets 5,785,650 5,683,849
Long-term investments 2,240,827 2,066,001
Property, plant and equipment 1,640,606 1,483,194
Other assets 788,446 837,475
Total assets $10,455,529 $10,070,519
Liabilities and equity:
Current liabilities $ 1,919,297 $ 2,101,804
Deferred income taxes 101,278 100,913
Long-term obligations 56,651 33,371
Stockholders' equity 8,378,303 7,834,431
Total liabilities and equity $10,455,529 $10,070,519
EMC Corporation
Supplemental Financial Data
Revenue Analysis
(in millions)
(unaudited)
Revenue analysis -
new format
Q1 1999 Q2 1999 Q3 1999 Q4 1999 YTD 1999
Storage Revenue
Information Storage Systems $1,003 $1,137 $1,152 $1,273 $4,565
Information Storage Software 155 179 207 281 822
Information Storage Services 75 84 93 110 362
Total Information
Storage Revenues 1,233 1,400 1,451 1,664 5,748
Other Businesses 250 248 257 212 967
Total Consolidated Revenues $1,483 $1,648 $1,709 $1,876 $6,716
Revenue analysis -
historic format
Q1 1999 Q2 1999 Q3 1999 Q4 1999 YTD 1999
Storage Revenue
Enterprise Systems $ 861 $ 986 $1,014 $1,146 $4,006
Software 155 179 207 281 822
ESCON, misc. (by McData) 39 46 24 34 143
Subtotal 1,056 1,210 1,244 1,461 4,971
Service/Rental 72 82 89 107 350
Base EMC 1,128 1,292 1,334 1,568 5,322
Midrange (CLARiiON)
Product and Service 106 108 118 96 427
Total Storage Revenue 1,233 1,400 1,451 1,664 5,748
Data General
Data General Systems 155 154 167 121 596
Data General Service 95 94 91 91 371
Total Data General 250 248 257 212 967
Total Consolidated EMC $1,483 $1,648 $1,709 $1,876 $6,716
Note: Amounts may not foot due to rounding.
EMC Corporation
Supplemental Financial Data
Revenue Analysis
(in millions)
(unaudited)
Revenue analysis -
new format
Q1 2000 Q2 2000 Q3 2000 Q4 2000 YTD 2000 Q1 2001
Storage Revenue
Information Storage
Systems $1,267 $1,516 $1,647 $1,816 $6,246 $1,564
Information Storage
Software 270 350 332 483 1,435 468
Information Storage
Services 116 134 161 200 612 232
Total Information
Storage Revenues 1,654 2,001 2,141 2,498 8,293 2,264
Other Businesses 169 145 142 123 580 81
Total Consolidated
Revenues $1,823 $2,146 $2,283 $2,621 $8,873 $2,345
Revenue analysis -
historic format
Q1 2000 Q2 2000 Q3 2000 Q4 2000 YTD 2000 Q1 2001
Storage Revenue
Enterprise Systems $1,132 $1,340 $1,451 $1,596 $5,519 $1,378
Software 270 350 332 483 1,435 468
ESCON, misc
(by McData) 39 37 34 43 153 26
Subtotal 1,440 1,728 1,817 2,122 7,107 1,872
Service/Rental 115 132 159 197 604 228
Base EMC 1,556 1,860 1,976 2,319 7,711 2,100
Midrange (CLARiiON)
Product and Service 98 141 165 179 582 164
Total Storage
Revenue 1,654 2,001 2,141 2,498 8,293 2,264
Data General
Data General
Systems 88 69 71 57 286 25
Data General
Service 81 76 71 66 294 56
Total Data
General 169 145 142 123 580 81
Total Consolidated EMC $1,823 $2,146 $2,283 $2,621 $8,873 $2,345
Note: Amounts may not foot due to rounding.
|
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion