EMC Reports Improved Results for Fourth Quarter.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 fourth quarter and full fiscal year results for 2001. The results included a 25% sequential revenue increase in the fourth quarter compared with the third quarter of 2001, strong performance in strategic growth areas such as networked information storage, software and services, and significant operating improvements. Total consolidated revenue for the fourth quarter was $1.51 billion, 25% higher than the $1.21 billion reported in the third quarter of 2001. Net loss for the fourth quarter was $70 million or $.03 per 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. share, compared with a third-quarter 2001 net loss of $945 million or $.43 per diluted share (a loss of $.12 per diluted share or $270 million, excluding a third-quarter after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. ). Total consolidated revenue for the year-ago fourth quarter was $2.62 billion and net income was $563 million or $0.25 per diluted share. Total consolidated revenue for the year was $7.09 billion, 20% lower than 2000. Net loss for the year was $508 million or $.23 per diluted share (including a third-quarter after-tax restructuring charge of $675 million or $.31 per share). Net income for the year 2000 was $1.78 billion or $.79 per diluted share. EMC's fourth-quarter performance included double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. sequential growth in all major product areas and in its major geographies. Fourth-quarter results were extremely strong in the fastest-growing market segments, including 52% sequential revenue growth in networked information storage (SAN 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 deployments), 45% sequential revenue growth in information storage software, and 15% sequential revenue growth in information storage services. 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 great to finish the year with momentum. Last year was painful for the entire technology sector, and it forced EMC to become a better company in many respects. In the fourth quarter we executed superbly on the cost side of the equation, saw solid improvement on the revenue side and launched our most important software initiative ever. The October October: see month. introduction of AutoIS (Automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. Information Storage) marked the beginning of the next major wave of storage automation, simplification and openness for our customers. The groundswell ground·swell n. 1. A sudden gathering of force, as of public opinion: a groundswell of antiwar sentiment. 2. of early customer response to AutoIS is resulting in the fastest ramp-up in our history for new software products. Customers like Target Corporation, CNA (Certified NetWare Administrator) See Novell certification. , and Sun America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. are examples of leading companies who quickly recognized that AutoIS can help them lower their costs and ease the management of all their information." "We will continue to extend our lead in the segments that are growing the fastest and clearly represent the future of information storage: networked storage, software, and services," said Tucci. "It's clear we extended our leadership in those segments during the fourth quarter and for the full year, and our technology strengths are extremely well suited to the ways customers are increasingly managing their information. We are delivering what customers need most today: networked storage and consolidation, open management software, business continuity solutions and lower total cost of ownership." Bill Teuber, EMC's Executive Vice President and Chief Financial Officer, said, "We launched a three-pronged Adj. 1. three-pronged - having three prongs divided - separated into parts or pieces; "opinions are divided" attack in the fourth quarter to improve operational efficiency. We aligned our workforce to address both the new economic reality and the opportunity ahead, enhanced the efficiency of the organization through new systems and processes, and lowered inventories. We reduced costs ahead of our own schedule, improved margins and achieved higher customer satisfaction levels. Our cash and investments increased to $5.1 billion at the end of the year, now representing more than 50% of total assets, with virtually no debt. We expect continued progress in 2002." For the full year 2001, EMC's revenue from networked information storage grew 26% compared with 2000, reaching $2.68 billion. The most recent projections from IDC indicate that EMC's 2001 market share in networked information storage (SAN and NAS) was 39%, exceeding the combined revenues of the next three vendors. Revenue from information storage software grew 9% in 2001 compared with 2000, reaching a record $1.56 billion and building on EMC's market-leading position in storage management software. EMC's major investments in customer and professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. also continued to pay off in 2001, as services revenue for the full year reached a record $972 million, 59% higher than 2000. Tucci added, "We expect that more than two-thirds of the world's storage configurations will be networked by 2005, and our 6,000-person global services organization, combined with our growing partner network, is well positioned to lead the rapid customer transition from direct-attached storage Direct-attached storage (DAS) refers to a digital storage system directly attached to a server or workstation, without a storage network in between. It is a retronym, mainly used to differentiate non-networked storage from SAN and NAS. to simpler, more efficient networked storage infrastructures." Highlights of the fourth quarter included major EMC wins at the following customers:
Harley-Davidson, Inc. Inovant, a Visa solutions co.
Wellmont Health Systems Loudeye Technologies, Inc.
Scottrade AXA Technology Services
Target Corporation Iron Mountain
CNA Sun America Inc.
Raytheon Company China Unicom Limited
Deutsche Bank AG (Germany)
TDS AG (Germany)
Sanpaolo IMI (Italy)
France Telecom Terminaux
BNP Paribas (Singapore)
SK Telecom (Korea)
Also during the fourth quarter, EMC announced EMC PowerPath PowerPath is EMC Corporation's multi-path management software for storage networks. It is server-resident software that manages a server's use of multiple paths to a storage device. software enhancements, delivering full end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. automated path fail-over for networked storage environments; released an integrated anti-virus See antivirus program. solution for the EMC Celerra  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . (TM) File Server; announced major connectivity enhancements to 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 . and EMC Symmetrix The Symmetrix is EMC's flagship enterprise storage array. There have been seven generations of Symmetrix hardware, with the first appearing in 1994 and the latest introduced in 2006. storage systems; and received awards for EMC's Global Services organization from The Service & Support Professionals Association (SSPA SSPA Solid State Power Amplifier SSPA Service and Support Professionals Association SSPA Software Support Professionals Association SSPA Short Statured People of Australia Inc. SSPA Submicron Signal Processor Architecture ) and DaimlerChrysler, a major EMC customer. EMC Corporation 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. EMC, CLARiiON and Symmetrix are registered trademarks, and EDM (Engineering Data Management) An information system that maintains the details of all engineering data while the product is in the design and concept phase. This includes geometry and changes to geometry. See PLM. EDM - Electronic Data Management , ControlCenter, Celerra and HighRoad are trademarks of EMC Corporation. Other trademarks are the property of their respective owners. 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) further adverse changes in general economic conditions; (ii) further delays or reductions in information technology spending; (iii) the company's ability to effectively manage operating costs operating costs npl → gastos mpl operacionales and increase operating efficiencies; (iv) further declines in revenues; (v) insufficient, excess or obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. ; (vi) competitive factors, including but not limited to pricing pressures; (vii) component quality and availability; (viii) rapid technological and market change and the transition to new products; (ix) the uncertainty of customer acceptance of new products; (x) the relative and varying rates of product price and component cost declines; (xi) the effects of war or acts of terrorism, including the effect on the economy generally, on particular industry segments, on transportation and communication systems and on the company's ability to manage logistics in such an environment, including receipt of components and distribution of products; (xii) the ability to attract and retain highly qualified employees; (xiii) the uneven pattern of quarterly sales; (xiv) 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; (xv) risks associated with strategic investments and acquisitions; (xvi) the Company's ability to execute on its plans; and (xvii) 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.
EMC CORPORATION
Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three Months Ended Twelve Months Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2001 2000 2001 2000
Revenues:
Net sales $1,196,548 $2,355,482 $5,915,695 $7,966,974
Services 316,162 265,804 1,174,938 905,842
1,512,710 2,621,286 7,090,633 8,872,816
Cost and expenses:
Cost of products 771,837 904,772 3,525,145 3,125,908
Cost of service 182,933 164,906 721,897 603,857
Research and
development 216,885 222,293 928,701 783,166
Selling, general and
administrative 492,963 615,590 2,214,223 2,102,982
Restructuring and
other special charges -- -- 398,508 --
Operating income/(loss) (151,908) 713,725 (697,841) 2,256,903
Investment income 64,810 63,176 265,285 206,240
Interest expense (810) (2,581) (11,338) (14,604)
Other expense, net (16,611) (3,261) (133,141) (7,341)
Income/(loss)
before taxes (104,519) 771,059 (577,035) 2,441,198
Income tax
provision/(benefit) (34,357) 208,186 (69,323) 659,123
Net income/(loss) $ (70,162) $ 562,873 $ (507,712) $1,782,075
Net income/(loss)
per weighted average
share, basic $ (0.03) $ 0.26 $ (0.23) $ 0.82
Net income/(loss)
per weighted average
share, diluted $ (0.03) $ 0.25 $ (0.23) $ 0.79
Weighted average
shares, basic 2,220,054 2,192,537 2,211,273 2,164,180
Weighted average
shares, diluted 2,220,054 2,252,834 2,211,273 2,245,203
As a % of total revenue:
Gross margin 36.9% 59.2% 40.1% 58.0%
Selling, general
and administrative 32.6% 23.5% 31.2% 23.7%
Research and
development 14.3% 8.5% 13.1% 8.8%
Operating income/(loss) -10.0% 27.2% -9.8% 25.4%
Net income/(loss) -4.6% 21.5% -7.2% 20.1%
EMC CORPORATION
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
Dec. 31, Dec. 31,
2001 2000
Assets:
Cash and short-term investments $ 2,574,447 $ 2,656,952
Accounts receivable 1,348,569 2,114,368
Inventories 583,985 1,024,964
Other current assets 416,241 303,767
Total current assets 4,923,242 6,100,051
Long-term investments 2,509,112 2,088,379
Property, plant and equipment 1,827,331 1,510,088
Other assets 629,950 839,281
Total assets $ 9,889,635 $10,537,799
Liabilities and equity:
Current liabilities $ 2,179,414 $ 2,113,647
Deferred income taxes -- 100,913
Long-term liabilities 109,401 146,030
Stockholders' equity 7,600,820 8,177,209
Total liabilities and equity $ 9,889,635 $10,537,799
Certain amounts have been reclassified in the 2000 numbers to conform
with the 2001 presentation.
EMC Corporation
Supplemental Financial Data
Revenue Analysis
(in millions)
(unaudited)
Revenue analysis
Q1 Q2 Q3 Q4 YTD
1999 1999 1999 1999 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
Q1 Q2 Q3 Q4 YTD
2000 2000 2000 2000 2000
Storage Revenue
Information Storage Systems $1,267 $1,516 $1,647 $1,816 $6,246
Information Storage
Software 270 350 332 483 1,435
Information Storage
Services 116 134 161 200 612
Total Information Storage
Revenues 1,654 2,001 2,141 2,498 8,293
Other Businesses 169 145 142 123 580
Total Consolidated Revenues $1,823 $2,146 $2,283 $2,621 $8,873
Q1 Q2 Q3 Q4 YTD
2001 2001 2001 2001 2001
Storage Revenue
Information Storage Systems $1,564 $1,226 $ 676 $ 842 $4,307
Information Storage
Software 468 498 243 352 1,560
Information Storage
Services 232 232 237 272 972
Total Information Storage
Revenues 2,264 1,955 1,155 1,466 6,840
Other Businesses 81 66 57 47 251
Total Consolidated Revenues $2,345 $2,021 $1,212 $1,513 $7,091
Note: Amounts may not foot due to rounding
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