EMC Corporation (NYSE:EMC) today reported financial results for the second quarter of 2002, reflecting strong sequential growth in revenue from the company's industry-leading portfolio of storage software products and continued progress in lowering EMC's cost structure.

Revenue for the second quarter was $1.39 billion, an increase of 7% compared to the $1.30 billion reported for the first quarter of 2002. Net loss for the second quarter, excluding the after-tax effects of a $25 million reversal to the third-quarter 2001 restructuring charge, was $11 million or $0.01 per diluted share, compared with a first-quarter 2002 net loss of $97 million or $0.04 per diluted share, also excluding the after-tax effects of a $28 million reversal to the third-quarter 2001 restructuring charge. Consolidated net income for the second quarter, including the after-tax benefit of the $25 million reversal, was nearly $1 million or $0.00 per share. In the year-ago second quarter, total revenue was $2.02 billion and net income was $109 million or $0.05 per diluted share.

Joe Tucci, EMC's President and CEO, said, "Economic conditions and customer spending patterns in the second quarter were very similar to the first quarter. Most large corporations continue to delay major IT projects, generally limiting their purchases to deployments that provide a rapid return on their investment. EMC's competitive advantage in this tight-fisted environment comes from being the only company 100% dedicated to comprehensive networked storage solutions. Software revenue grew 14% compared with the first quarter, a clear sign that customers are embracing our AutoIS open software strategy. The other major factors in our improved sequential performance were better international results and our tenacious attack on costs. We believe we gained market share in both hardware and software during the second quarter."

Bill Teuber, EMC's Executive Vice President and Chief Financial Officer, said, "We saw an encouraging balance in our revenue performance in the second quarter, with solid sequential growth in storage systems, software and services. We continued to make great progress on our cost structure. With the additional cost reductions achieved in the second quarter, our cost savings have now reached an annualized run rate in excess of $1 billion. Strong asset management helped increase cash and investments during the quarter by $171 million, to nearly $5.5 billion." Also during the quarter, $200 million was used to repurchase EMC common stock. EMC has now repurchased nearly half of the 50 million shares authorized under the stock repurchase program approved by its Board of Directors in May 2001.

The many EMC customer wins during the quarter included, in the U.S., Ameritrade Holding Corporation, The Boeing Company, BJ's Wholesale Club, Inc., Kinko's, Inc., JC Penney, LexisNexis, Michael's Stores, New York Life, Naval Reserve, and Sallie Mae; in Europe, Société Générale Group (France), Banco Pastor (Spain), Clearstream International (Belgium), Deutsche Post AG (Germany), Marks & Spencer and Tesco (U.K.), and Vodafone in Germany; in Latin America, Axtel (Mexico), Pan American Energy (Argentina) and Banco do Brasil (Brazil); and in the Asia Pacific region, Agriculture Bank of China, Credit Lyonnais Securities Asia Emerging Markets, and Korea Exchange Bank.

Also during the quarter, EMC introduced Centera™, the world's first content-addressed storage (CAS) system, an entirely new software-driven, online networked storage architecture designed for fixed content; was honored as a General Motors Supplier of the Year for the third consecutive year for superior performance in quality, service, technology and price; re-affirmed its full support of cooperative industry activities to develop robust standards for open storage management by promoting the Common Information Model (CIM) and Web-Based Enterprise Management (WBEM) technologies designed to create a standard interface for the management of multi-vendor storage networks; and introduced new low-cost/high-density and high-performance disk drive technology for EMC CLARiiON systems.

Other highlights of the quarter included new reports from the leading market research firms on 2001 market share results, which confirmed that EMC widened its lead as the world's #1 provider of storage management software, networked storage, SANs (storage area networks), and, for the first time, led the NAS (networked attached storage) market as the #1 supplier.

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 http://www.EMC.com.