MORGEN WIRDS BÖSE SPRITZEN
EMC Announces Preliminary Second Quarter Results
Revenue Expected to Be Approximately $2 Billion
Earnings Per Share Expected to Be in Range of $0.04 to $0.06
HOPKINTON, Mass.--(BUSINESS WIRE)--July 5, 2001--EMC Corporation (NYSE:EMC - news) today announced estimated revenue and earnings per share for the second quarter of 2001, which ended June 30, 2001, based on preliminary financial results. EMC expects total consolidated revenue to be approximately $2 billion, and earnings per share to be in the range of $0.04 to $0.06 for the second quarter. EMC plans to announce complete second-quarter results on the morning of Wednesday, July 18, 2001.
``EMC`s business is being impacted to a degree with each unanticipated downward step in the global economy. It now appears that there are fewer dollars being invested in information technology than a year ago,`` said Joe Tucci, EMC`s President and CEO. ``The earnings results for EMC`s major customers - the bulk of the S&P 500, for example - have been like a ball rolling down a hill for each of the past three quarters. When our customers earn less money, most of them have less to spend on IT, and they take a longer time to spend what they do have. That means lowered revenue and profitability for EMC. We are helping customers manage through their fiscal constraints by delivering more value for their storage dollar than they have ever been able to obtain, but the associated impact on EMC`s margins is more significant than anticipated. Although this quarter was a disappointment, we continued to close business at the expense of our competitors throughout the information storage landscape.``
Bill Teuber, EMC Senior Vice President and Chief Financial Officer, said, ``Clearly, the economic slowdown that began in the U.S. has now spread to virtually all international geographies, which were further impacted by a strong U.S. dollar. As a result, sales cycles have continued to elongate. We expect gross margins for the second quarter will be in the mid-40 percent range, reflecting several factors: lower sales volume than anticipated, customer incentive programs, and our competitive pricing actions. We will present further analysis of the factors impacting gross margins in our July 18 conference call.``
``We generated a significant amount of revenue over the course of the final days of the quarter,`` continued Teuber. ``We are in the process of closing the books and, therefore, the information presented in this announcement is preliminary. We wanted to make sure we communicated as quickly as possible, but we will not be in a position to comment further until we announce full second-quarter results on July 18.``
About EMC
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 www.EMC.com.
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) adverse changes in economic conditions in various geographic markets and fluctuating currency exchange rates; (ii) an unexpected decline in the revenue growth rate without a corresponding decline in costs; (iii) competitive factors, including but not limited to pricing pressures, in the computer storage and server markets; (iv) component quality and availability; (v) rapid technological and market change and the transition to new products; (vi) the relative and varying rates of product price and component cost declines; (vii) the ability to attract and retain highly qualified employees; (viii) the uneven pattern of quarterly sales; (ix) risks associated with strategic investments and acquisitions; (x) the Company`s ability to execute on its plans; and (xi) 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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