UPDATE: EMC Q4 Revenue Tops US$1.88 Billion

BOSTON (01/26/2000) - Storage maker EMC Corp. this week announced what it said was record revenue and earnings for its 1999 fourth quarter and fiscal year.

"I've never been more excited to be in the storage business," said Mike Ruettgers, EMC's chief executive officer, speaking on a conference call today.

Revenue for the fourth quarter was US$1.88 billion, 21 percent higher than the fourth quarter of last year, the company said. Net income for the fourth quarter was $377 million, 38 percent higher than the same period last year, EMC said. On a diluted basis, earnings per share were 34 cents for the quarter, compared with 25 cents for the fourth quarter of 1998, the Massachusetts-based company said. The per-share income result beat the consensus forecast of 31 cents by 23 analysts polled by First Call/Thomson Financial.

For the full 1999 fiscal year, revenue reached $6.72 billion, up 24 percent from last year, EMC said. Net income for 1999 was $1.18 billion, fully 50 percent higher than the previous year, and earnings per share, on a diluted basis, were $1.07, compared with 73 cents for 1998, the company said. This also beat the consensus forecast, which was $1.05, according to First Call.

EMC's software sales "put us on a path to become one of the 10 largest software companies anywhere in the world," Ruettgers said. "We remain on track for $12 billion in revenue in 2001."

One observer said that EMC's 2001 revenue goal was achievable, given its strengths and the overall storage market.

"The sum of the hardware and software storage market is well into the $30 billion range, moving to the $50 billion range," said Robert Gray, an analyst with International Data Corp. in Framingham, Massachusetts. "Could one company supply that? Why not?"

On the conference call today, EMC's Ruettgers also gave an update on some other EMC business. In August, the company announced it would buy Data General Corp. for $1.1 billion, and that integration has been completed, Ruettgers said. In addition, the Y2K buying freeze that affected some companies had "no impact" on EMC, he said.

EMC, in Hopkinton, Massachusetts, can be reached at +1-508-435-1000 or at http://www.emc.com/

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