EMC reports record revenue, higher profitability in third quarter.HOPKINTON Hopkinton is the name of several towns in the United States:
Open systems storage revenue triples; Strong competitive
position leads to continued market share gains
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. , the world's leading provider of intelligent information storage and retrieval information storage and retrieval, the systematic process of collecting and cataloging data so that they can be located and displayed on request. Computers and data processing techniques have made possible the high-speed, selective retrieval of large amounts of technology, reported today that in the third quarter of 1996 it achieved all-time record quarterly revenue for the fourth consecutive quarter and a strong and improving overall financial performance.
EMC's record revenue of $551 million for the third quarter of 1996 was 16% above the $475 million posted in the third quarter of 1995. Net income of $90 million and earnings per share of $0.37 in the third quarter were up from the $85 million and $0.35 per share achieved in the year-earlier third quarter. Additionally, 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. continues to generate significant positive cash flow. In the past year, total cash and investments have almost doubled to $759 million at the end of the third quarter of 1996.
EMC's record quarterly revenue was highlighted by the explosive growth of the company's open systems storage business. Third-quarter revenue from this market was $183 million, triple the level achieved in the year-ago quarter.
"EMC had another very strong quarter in terms of both our financial performance and the broadening of our lead in the largest, fastest-growing and most profitable segments of the worldwide market for information storage systems," said Michael C. Ruettgers, EMC president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "We are on track to achieve our target of $750 million in 1996 revenue from open systems. Our competition in this market consists primarily of products that were designed as proprietary add-ons simply to leverage CPU CPU
in full central processing unit
Principal component of a digital computer, composed of a control unit, an instruction-decoding unit, and an arithmetic-logic unit. revenue. Customers around the world increasingly are consolidating their server-based information on EMC's high-performance, scalable, flexible Symmetrix systems."
EMC's performance in the third quarter also reflected stronger-than-anticipated revenues in the IBM-compatible mainframe A non-IBM mainframe that runs IBM mainframe operating systems and/or applications. In the late 1960s, RCA's computer division produced the Spectra 70, the first line of machines compatible with IBM's System/360. storage market during what is traditionally a seasonally weaker quarter. "Customer demand for EMC's intelligent storage solutions continues to rise, and we continue to gain market share at the expense of competitors in both the mainframe and open systems disk storage markets," said Ruettgers. "Our stronger-than-expected growth in revenues from IBM-compatible mainframe storage systems is further evidence of a trend we identified in the second quarter: the consolidation of vendors in this market is indeed causing customers to think twice before investing in a confusing con·fuse
v. con·fused, con·fus·ing, con·fus·es
a. To cause to be unable to think with clarity or act with intelligence or understanding; throw off.
b. array of disparate products from competitors."
During the third quarter, Oracle Corp., the world leader in database software, named EMC's Symmetrix 3000 open storage system as the storage solution for the development and testing of its next-generation relational database relational database
Database in which all data are represented in tabular form. The description of a particular entity is provided by the set of its attribute values, stored as one row or record of the table, called a tuple. software -- the first independent storage platform ever designated as a testbed for Oracle's new releases. In addition, EMC and Hewlett-Packard expanded their reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. relationship; EMC announced a doubling in its Symmetrix Data Migration Services business; and FORTUNE magazine named EMC one of "America's 100 Fastest Growing Companies."
On Tuesday, October 22, in New York New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , EMC will introduce its newest products and technologies for enterprise and network storage. The products were developed under EMC's Intelligent Storage Architecture, enabling customers to continue to plan and implement information-centric strategies based on EMC's intelligent storage solutions.
EMC Corporation, based in Hopkinton, Massachusetts Hopkinton is a town located in southwestern Middlesex County, Massachusetts, about 40 km (26.4 mi) from Boston. It is one of nine towns that are part of the region known as MetroWest. The population was 13,346 at the 2000 census. , is the world's leading supplier of enterprise-wide intelligent information storage and retrieval technology, designing systems for mainframe, open systems and midrange midrange Epidemiology The halfway point or midpoint in a set of observations; for most data, MR is calculated as the sum of the smallest observation and the largest observation, divided by 2; for age data, one is added to the numerator; a midrange is usually environments. The company has offices worldwide, trades on the New York Stock Exchange New York Stock Exchange (NYSE)
World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. under the symbol EMC and is a member of the S&P 500 Index. For further information about EMC products and services, EMC's home page can be accessed at http://www.emc.com.
This release contains a forecast of future revenues and a prediction of new product announcement plans that are "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. " under the Federal Securities Laws. Actual results could vary materially and there can be no assurance that these plans will be achieved. Factors that could cause actual results to vary materially include, but are not limited to: changes in business conditions, changes in EMC's sales strategy and product development plans, changes in the data storage marketplace, competition between EMC and other companies that are currently in the data storage market, or competition between EMC and other companies that may be entering the data storage market, product pricing pressures instituted by competitors, continued market acceptance of EMC's mainframe and open systems products, delays in the development of new technology, changes in customer buying patterns, one-time events and other important factors disclosed previously and from time to time in EMC's filings at the U.S. Securities and Exchange Commission.
EMC CORPORATION CONSOLIDATED STATEMENT OF OPERATIONS (in thousands except per share data) (unaudited) Three Months Ended Sept. 30, Sept. 30, 1996 1995 Revenues $ 550,754 $ 475,460 Net Income $ 90,347 $ 85,158 Earnings per share, fully diluted $ 0.37 $ 0.35 Shares, fully diluted 249,795 248,297 Nine Months Ended Sept. 30, Sept. 30, 1996 1995 Revenues $1,617,258 $1,402,129 Net Income $ 261,946 $ 264,718 Earnings per share, fully diluted $ 1.07 $ 1.09 Shares, fully diluted 249,287 247,957
CONTACT: EMC Corp.