Like other entrepreneurs they wanted to be their own bosses, but without an idea or a plan for a product, they initially sold office furniture.ġ980 Egan and Marino become New England representatives for Intel, selling the company’s product line and renting out microprocessor development systems. Gray said "EMC has set some ambitious goals" for itself but "hasn't lost its edge" and has shown it's up to meeting these goals.EMC was founded in August 1979 in Massachusetts and went through three distinct eras: The Dick Egan and Roger Marino era when it successfully developed and sold computer memory systems the Moshe Yanai and Mike Ruettgers era, when it developed (Yanai) and sold (Ruettgers) high-end, disk-based computer storage systems (hardware and software) and the Joe Tucci era, continuing EMC’s tradition of focused execution and sales excellence, while relying mostly on a long string of acquisitions for innovation and diversification.Īug43-year-old Dick Egan and 40-year-old Roger Marino quit their jobs and the former college roommates incorporate EMC in Massachusetts. In addition, Ruettgers said EMC is still on target to reach $12 billion in sales by next year and will hire 4,000 more employees this year. ($6.11 billion in sales) IBM ($3.6 billion) Islandia, N.Y.-based Computer Associates International Inc. Ruettgers said EMC's software sales - $822 million in sales last year, up 85% from 1998 - "put us on a path to become one of the 10 largest software companies" this year. Profits, including charges from the DG deal, were $207 million. Profits last year totaled $1.18 billion, a 50% increase from the year before.Įxcluding the October acquisition of Westboro, Mass.-based Data General Corp., profits totaled $377 million in the fourth quarter of 1999. It reported $6.72 billion in sales last year, which was 24% higher than in 1998. According to Gray, EMC is doing well in the network-attached storage market, but Network Appliance takes the top spot.ĭespite the company's failure to meet analysts' expectations, EMC's fiscal 1999 and fourth quarter proved to be its "most successful" to date. in Sunnyvale, Calif., its main competitor in the network-attached storage arena. in Framingham, Mass., said he was surprised that EMC didn't mention Network Appliance Inc. Robert Gray, an analyst at International Data Corp. But he said EMC's stock will recover in the coming months, in part because of Symmetrix 5, an upgrade to EMC's enterprise storage system that will feature Fibre Channel throughout.ĭuring last week's earnings conference call, Ruettgers mentioned EMC's leadership over IBM, Hewlett-Packard Co. Gary Helmig, an analyst at Stamford, Conn.-based SoundView Technology Group, said investors expected EMC to deliver more storage sales. ![]() ![]() CEO Mike Ruettgers said the company was on target, having expected 25% to 30% growth.īut Wall Street didn't agree: EMC stock spent last Wednesday rising and falling, opening at $114 and closing at $110.18. Storage systems sales totaled $1.66 billion for the quarter.ĮMC's core enterprise storage business historically has grown about 30% each quarter, but it garnered 27% growth in the last quarter. The Hopkinton, Mass.-based company tallied $1.88 billion in sales in 1999's fourth quarter, a 21% increase from the same period the previous year. 31, but it also fell short in its traditional systems business. said last week that it had its best quarter ever and met analysts' expectations for the period that ended Dec.
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