EMC Corporation Q2 2009 Earnings Call Transcript

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2009-07-23 09:35:48.0

Tags: Call Transcript, Bank Of Montreal, Earnings, EMC Corp., Avamar, Accretion Potential, GAAP, Financial Accounting, Finance, Seeking Alpha

Question-and-Answer Session

Operator

Yes sir. (Operator instructions) Keith Bachman of Bank of Montreal, you may ask your question.

Keith Bachman – Bank of Montreal

Thank you very much. I wanted to ask a question on Data Domain if I could please. I know you mentioned Avamar and Data Domain would add about incremental billion dollars. I was wondering if you could parse that out a little bit and it’s been sometime since you had your conference call if you could tell us how you are thinking about -- or relate it how you are thinking about the accretion potentials related to Data Domain as you look out into calendar year ’10. Thanks.

Joe Tucci

Well, David gave you Data Domain’s growth rate and revenue for Q2. We didn’t give you Avamar. We did tell you that Avamar, I will say Avamar is slightly smaller than Data Domain and had a growth rate a little bit higher in the mid 40s, so we get the deduplication which Avamar excels at which is at the source where information is created and of course you have to target as where Data Domain excels, and we feel that this market together we will continue to grow at over 40% next year and those two products alone is not an incremental billion, just remarkable growth to over $1 billion next year on those two products, Keith.

Keith Bachman – Bank of Montreal

Okay, Joe. And then in the past you have talked about the accretion potential, is there any color that you can give on the incremental opportunities with just data demand on how you are thinking about the accretion potentials?

David Goulden

Keith this Dave. Let me jump in and just kind of recap what we have said. So, we gave you some information in the news release about, 2009 we said that there'll be no impacts on a non-GAAP basis and a little less than $0.02 on the GAAP basis this year. 2010 still will be accretive to us on a non-GAAP basis, but we are not going to qualify that yet, we will give you more information and that was to get closer to year-end.

Keith BachmanBank of Montreal

Okay thank you guys.

Tony Takazawa

Thanks Keith. Next question plus.

Operator

Benjamin Reitzes of Barclays Capital, you may ask your question.

Benjamin Reitzes – Barclays Capital

Yes thanks a lot. My question is on Symmetrix. I believe you said the product was down 3% sequentially, but correct me if I'm wrong, what is the pent-up demand in that upgrade cycle heading into the back half? Is that part of the reason you have a better tone and a visibility and just what you kind of envision for the velocity of this product? Can a cycle last well into 2010, and what are customers telling you, because it clearly seems like it hasn't gotten going yet, and just talking about the velocity of that product price, you know going out, as far as you'd like would be helpful.

 

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