Press Release

EMC Reports 37% Storage Revenue Growth, Expansion Of Market Lead In First Quarter

Networked Information Storage Revenue up 158%; Software Revenue up 73%

Hopkinton, Mass., Thursday, April 19, 2001 - 

EMC Corporation (NYSE:EMC) 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 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 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 that information is at the center of business."

Joe Tucci, EMC President and CEO, said, "With 37% growth in information storage revenue, it's 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 (network-attached storage) implementations. Gartner Dataquest 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 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, Ireland and Japan during the first quarter. That was 54% more than in the first quarter of 2000, a leading indicator of storage spending as well as the rising interest in the EMC Offering. From the best hardware platforms and the most functional set of software products, to the most advanced and open networked information storage solutions and unmatched customer and professional services, the EMC Offering has never been more compelling."

Highlights of the first quarter included EMC being named Wal-Mart Supplier of the Year for 2000, the first time a technology vendor has ever been chosen for this prestigious honor, which is based on collaboration and ongoing support; the introduction of the EMC CLARiiON® FC4700 networked storage system (code-named Chameleon), completing the rollout of the world's first system able to be implemented in NAS, SAN, direct-attached or clustered environments; new ESN Manager software for mixed-vendor SAN environments and new SnapView and MirrorView software for CLARiiON; and the EMC Proven Professional Certification Program, which will train and qualify thousands of information storage professionals and certify 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 Excellence Award as the leading B2B 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 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 www.emc.com.
Notes: