EMC Reports All-Time Record Quarterly Revenue and Net Income
Profits Up 54% On Strength of Software, Fibre Channel, International Business
Hopkinton, Mass. - Wednesday, October 20, 1999
EMC Corporation (NYSE:EMC), the world's leading provider of enterprise storage systems, software and services, today reported all-time record quarterly revenue and net income for the third quarter of 1999.
Revenue for the third quarter was a record $1.33 billion, 33% higher than the third quarter of 1998. Net income for the quarter was a record $310 million, up 54% compared with the third quarter of 1998. On a diluted basis, earnings per share were a record $0.29 in the quarter, compared with $0.19 in the third quarter of 1998 (adjusted for a 2-for-1 stock split effective May 28, 1999). Software revenue increased 76% to $207 million, and systems revenue increased 28% to $1.01 billion, compared with the third quarter of 1998.
Statements of Income and Balance Sheets (Consolidated)
The third quarter marked EMC's 10th consecutive quarter with revenue and net income growth of at least 30%. Revenue from Symmetrix Enterprise Storage systems with Fibre Channel connectivity exceeded $400 million in the third quarter, up more than 100% over the year-ago quarter. International business was strong, led by a 45% increase in Asia-Pacific revenues compared with the third quarter of 1998, and strong profit contributions from all major regions.
Michael C. Ruettgers, EMC President and CEO, said, "Our results were extremely strong across the board in the third quarter, thanks to excellent execution in all geographies and customers' growing recognition of EMC's competitive advantages. We believe we gained market share during the third quarter, and did so while improving margins."
"The Internet-driven economy is creating unprecedented demand for intelligent enterprise storage," continued Ruettgers. "The growth of online information and the need to uniformly manage and protect it have become critical business challenges not only for the dot-com pioneers, but also for the Global 2000. All types of companies now recognize that thriving in the new economy requires a world-class information infrastructure and a common approach to information management. No technology provider is better positioned than EMC to meet these requirements."
Other highlights of the third quarter included EMC's announcement of an agreement to acquire Data General Corporation (completed October 12); the opening of new customer support centers in Japan and Australia; and the introduction of the EMC E-Infostructure Developers Program, which provides wide-scale access to EMC application programming interfaces (APIs) for independent software vendors. Also during the quarter, a FORTUNE magazine survey of worldwide executives named EMC third among "The World's Most Admired Companies" in "quality of products and services" (Intel and Procter & Gamble were first and second, respectively).
EMC Corporation, based in Hopkinton, Massachusetts, is the world's technology and market leader in the rapidly growing market for intelligent enterprise storage systems, software, networks, and services. The company's products store, retrieve, manage, protect and share information from all major computing environments, including UNIX, Windows NT and mainframe platforms. The company has offices worldwide, trades on the New York Stock Exchange under the symbol EMC, and is a component of the S&P 500 Index. For further information about EMC and its storage solutions, EMC's corporate web site can be accessed at http://www.EMC.com.
EMC and Symmetrix are registered trademarks and EMC Enterprise Storage and EMC Enterprise Storage Network are trademarks of EMC Corporation.This release contains "forward-looking statements" 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) component quality and availability; (ii) delays in the development of new technology and the transition to new products; (iii) competitive factors, including but not limited to pricing pressures, in the computer storage market; (iv) the relative and varying rates of product price and component cost declines; (v) economic trends in various geographic markets and fluctuating currency exchange rates; (vi) deterioration or termination of the agreements with certain of the Company's resellers or OEMs; (vii) the uneven pattern of quarterly sales; (viii) risks associated with acquisitions; (ix) Year 2000 issues; and (x) 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.
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