-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KtvsbfJ/rhx5i3iSYoWJ7Tk3HLVYGyIqHJNZET0v7cxvD/RVlY+ktrKWhdAwKcnL R8T32CYNtfhZif4Gs+iQhQ== 0001047469-03-002284.txt : 20030123 0001047469-03-002284.hdr.sgml : 20030123 20030123140530 ACCESSION NUMBER: 0001047469-03-002284 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030123 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20030123 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EMC CORP CENTRAL INDEX KEY: 0000790070 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER STORAGE DEVICES [3572] IRS NUMBER: 042680009 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 033-03656 FILM NUMBER: 03522132 BUSINESS ADDRESS: STREET 1: 176 SOUTH STREET CITY: HOPKINTON STATE: MA ZIP: 01748-9103 BUSINESS PHONE: 5084351000 MAIL ADDRESS: STREET 1: 176 SOUTH STREET CITY: HOPKINTON STATE: MA ZIP: 01748-9103 8-K 1 a2101436z8-k.txt 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): JANUARY 23, 2003 ---------------- EMC CORPORATION ---------------------------------- (Exact name of registrant as specified in its charter) MASSACHUSETTS 1-9853 NO. 04-2680009 - -------------------------------------------------------------------------------- (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 176 SOUTH STREET, HOPKINTON, MA 01748 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (508) 435-1000 --------------------------- N/A - -------------------------------------------------------------------------------- (Former Name or Former Address, if changed since last report) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS - --------------------------------------------------------------------------- (c) Exhibits 99.1 Press Release dated January 23, 2003 ITEM 9. REGULATION FD DISCLOSURE - --------------------------------- On January 23, 2003, EMC Corporation issued a press release relating to its fourth quarter 2002 results and outlook relating to 2003 and the first fiscal quarter of 2003. The press release is attached hereto as Exhibit 99.1 and incorporated by reference herein. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. EMC CORPORATION By: /s/ William J. Teuber, Jr. ---------------------------------- William J. Teuber, Jr. Executive Vice President and Chief Financial Officer Date: January 23, 2003 3 EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press Release dated January 23, 2003 EX-99.1 3 a2101436zex-99_1.txt EXHIBIT 99.1 Exhibit 99.1 Contact: Michael Gallant 508-293-6357 FOR IMMEDIATE RELEASE gallant_michael@emc.com ----------------------- EMC REPORTS FOURTH QUARTER RESULTS REVENUE UP 18% SEQUENTIALLY ON STRONG CUSTOMER DEMAND, MARKET SHARE GAINS FOR CLARiiON CX SYSTEMS, INFORMATION STORAGE SOFTWARE HOPKINTON, Mass. - January 23, 2003 - EMC Corporation (NYSE:EMC) today reported fourth quarter and full fiscal year results for 2002. The results included an 18% sequential revenue increase in the fourth quarter compared with the third quarter of 2002, led by strong customer demand for the new CLARiiON CX family of mid-tier networked storage systems and for EMC's industry-leading portfolio of information storage software products. Total consolidated revenue for the fourth quarter was $1.49 billion, 18% higher than the $1.26 billion reported in the third quarter of 2002, and 2% lower than the $1.51 billion reported in the fourth quarter of 2001. Net loss for the fourth quarter, including an after-tax restructuring and other special charge of $117 million, was $64 million or $.03 per share, compared with a net loss of $70 million or $.03 per share in the fourth quarter of 2001. Net income for the fourth quarter of 2002, excluding the aforementioned $117 million charge, was $53 million, or $.02 per diluted share. Total consolidated revenue for the full 2002 fiscal year was $5.44 billion, compared with $7.09 billion for the full 2001 fiscal year. Net loss for the full 2002 fiscal year was $119 million or $.05 per share, compared with a net loss of $508 million or $.23 per share for the full 2001 fiscal year. Joe Tucci, EMC's President and CEO, said, "We finished 2002 on a very strong note as our automated networked storage strategy began to pay off. Each of our major businesses -information storage systems, software and services - achieved double-digit sequential revenue growth. It's clear we gained market share, particularly in mid-tier storage and storage software. We are now approaching customers with our strongest and most complete product line ever, a lower cost structure, and a significantly improved go-to-market model. We expect to gain market share in all of our strategic segments and grow profitably throughout 2003." EMC's fourth-quarter results were marked by success in several strategic areas. Revenue from EMC's mid-tier CLARiiON products experienced strong double-digit growth in the fourth quarter compared with the third quarter of 2002. Revenue from information storage software grew 22% in the fourth quarter compared with the third quarter of 2002. EMC Centera Content Addressed Storage systems, introduced in April 2002, significantly exceeded fourth-quarter revenue expectations, with well over one petabyte (1,000 terabytes) of Content Addressed Storage shipped during the quarter. Bill Teuber, EMC's Executive Vice President and Chief Financial Officer, said, "The balanced sequential revenue growth we achieved was encouraging. Healthy customer demand for our automated networked storage solutions helped increase our overall product volume, leading to a significant improvement in gross margins. Throughout 2002, we focused on controlling the controllable. Since we intensified our attack on costs six quarters ago, we have achieved an annualized cost savings rate of more than $1.25 billion, resulting in a quarterly break-even level of about $1.37 billion. In addition, we continued to strengthen the balance sheet during the year. Absent the $364 million we spent repurchasing our shares, cash and investments would have increased $966 million during 2002. We ended the year with cash and investments of $5.7 billion, or approximately 60% of total assets." During the fourth quarter, EMC continued its most aggressive series of product roll-outs ever by delivering two new members of the powerful CLARiiON CX family of mid-tier networked storage systems; combining the functionality and availability found in EMC's high-end NAS solutions with the cost advantages of CLARiiON into the EMC Celerra NS600; and providing customers with NAS software solutions that enable organizations to centrally manage and automate the movement of files and data across geographically dispersed locations with new EMC OnCourse software. EMC also expanded its alliance with Dell and jointly teamed with Microsoft to develop the largest Microsoft SQL Server(TM) storage area network (SAN) ever built; unveiled major advances in its WideSky Developers Suite; and outlined plans to drive standards-compliant, open storage management solutions into real-world environments. EMC products, services and people were recognized during the fourth quarter for innovation, market leadership, and historic contributions. The readers of INTELLIGENT ENTERPRISE MAGAZINE selected EMC ControlCenter as the world's best family of storage management software in the publication's annual "Intelligent Enterprise Reader's Choice Awards"; EMC Centera was named "Product of the Year" by the content collaboration magazine TRANSFORM MAGAZINE, and received "Best of Show" honors at the BioIT WORLD CONFERENCE & EXPO; EMC won the Software Technical Assistance Recognition (STAR) award for outstanding mission-critical support for the second year in a row; and EMC Executive Chairman Mike Ruettgers was inducted into the IT INDUSTRY HALL OF FAME for transforming and revolutionizing the way businesses access, manage, share and protect digital information. BUSINESS OUTLOOK - ---------------- THE FOLLOWING STATEMENTS ARE BASED ON CURRENT EXPECTATIONS. THESE STATEMENTS ARE FORWARD-LOOKING, AND ACTUAL RESULTS MAY DIFFER MATERIALLY. THESE STATEMENTS DO NOT INCLUDE THE POTENTIAL IMPACT OF ANY MERGERS, ACQUISITIONS, DIVESTITURES OR BUSINESS COMBINATIONS THAT MAY BE COMPLETED AFTER THE DATE HEREOF. o Revenue in the first quarter of 2003 is expected to be between $1.35 billion and $1.4 billion. o Excluding any restructuring charges, earnings per share in the first quarter of 2003 is expected to be, at best, $.01 per diluted share. o Additional improvements in the overall cost structure are expected during 2003, resulting in an expected break-even level under $1.3 billion by the end of Q2 of 2003. o Excluding any restructuring charges, EMC expects to report net income for each quarter in 2003. o EMC expects continued improvement in gross margins and operating margins during 2003, although quarterly margins may vary during the year based on volume. o R&D investment for 2003 is expected to be slightly lower than the $781 million invested in 2002, as additional efficiencies are gained. o Capital spending for 2003 is expected to be approximately the same to slightly down compared with the $391 million spent in 2002. o The tax rate for 2003 is expected to be approximately 30%. ABOUT EMC EMC Corporation is the world leader in information storage systems, software, networks and services, providing automated networked storage solutions that enable organizations of all sizes to better and more cost-effectively manage, protect and share their information. More information about EMC's products and services can be found at www.EMC.com. EMC and CLARiiON are registered trademarks, and Celerra, Centera, OnCourse, ControlCenter and WideSky are trademarks of EMC Corporation. Other trademarks are the property of their respective owners. # # # 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 general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) the transition to new products, the uncertainty of customer acceptance of new product offerings, and rapid technological and market change; (iv) insufficient, excess or obsolete inventory; (v) competitive factors, including but not limited to pricing pressures; (vi) component quality and availability; (vii) the relative and varying rates of product price and component cost declines; (viii) the ability to attract and retain highly qualified employees; (ix) fluctuating currency exchange rates; (x) risks associated with strategic investments and acquisitions; 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. EMC CORPORATION Consolidated Statements of Operations Three Months Ended December 31, 2002 (in thousands, except per share amounts) (Unaudited)
GAAP Adjustments Adjusted ------------ ----------- ------------- Revenues: Net sales $ 1,148,807 $ 1,148,807 Services 340,591 340,591 ------------ ----------- ------------- 1,489,398 1,489,398 Costs and expenses: Cost of sales 721,599 (823)(1) 722,422 Cost of services 180,032 180,032 Research and development 186,796 186,796 Selling, general and administrative 393,054 393,054 Restructuring and special charges 150,402 150,402 (2) - ------------ ----------- ------------- Operating income (loss) (142,485) (149,579) 7,094 Investment income 69,734 69,734 Interest expense (3,071) (3,071) Other expense, net (16,436) (8,920)(2) (7,516) ------------ ----------- ------------- Income (loss) before taxes (92,258) (158,499) 66,241 Income tax (benefit) provision (28,342) (41,844)(3) 13,502 ------------ ----------- ------------- Net income (loss) $ (63,916) $(116,655) $ 52,739 ============ =========== ============= Net income (loss) per weighted average share, basic $ (0.03) $ (0.05) $ 0.02 ============ =========== ============= Net income (loss) per weighted average share, diluted $ (0.03) $ (0.05) $ 0.02 ============ =========== ============= Weighted average shares, basic 2,193,269 2,193,269 Weighted average shares, diluted 2,193,269 2,197,485 As a % of total revenue: Gross margin 39.5% 39.4% Selling, general and administrative 26.4% 26.4% Research and development 12.5% 12.5% Operating income (loss) -9.6% 0.5% Net income (loss) -4.3% 3.5%
(1) Reversal of $823 of restructuring inventory provision taken in the third quarter of 2001. (2) Represents $159,322 Q4 '02 restructure and other special charges. (3) Represents the tax impact of adjustments (1) and (2). EMC CORPORATION Consolidated Statements of Operations (in thousands, except per share amounts) (Unaudited)
Three Months Ended Twelve Months Ended ----------------------------- -------------------------------- December 31, December 31, December 31, December 31, 2002 2001 (1) 2002 2001 (2) ----------------------------- -------------------------------- Revenues: Net sales $ 1,148,807 $ 1,196,548 $ 4,219,156 $ 5,915,695 Services 340,591 316,162 1,219,196 1,174,938 ----------------------------- -------------------------------- 1,489,398 1,512,710 5,438,352 7,090,633 Cost and expenses: Cost of sales 721,599 771,837 2,614,482 3,525,145 Cost of services 180,032 182,933 705,028 721,897 Research and development 186,796 216,885 781,457 928,701 Selling, general and administrative 393,054 492,963 1,680,814 2,214,223 Restructuring and other special charges 150,402 - 150,402 398,508 ----------------------------- -------------------------------- Operating loss (142,485) (151,908) (493,831) (697,841) Investment income 69,734 64,810 256,153 265,285 Interest expense (3,071) (810) (11,415) (11,338) Other expense, net (16,436) (16,611) (47,394) (133,141) ----------------------------- -------------------------------- Loss before taxes (92,258) (104,519) (296,487) (577,035) Benefit for income taxes (28,342) (34,357) (177,781) (69,323) ----------------------------- -------------------------------- Net loss $ (63,916) $ (70,162) $ (118,706) $ (507,712) ============================= ================================ Net loss per weighted average share, basic $ (0.03) $ (0.03) $ (0.05) $ (0.23) ============================= ================================ Net loss per weighted average share, diluted $ (0.03) $ (0.03) $ (0.05) $ (0.23) ============================= ================================ Weighted average shares, basic 2,193,269 2,220,054 2,206,294 2,211,273 Weighted average shares, diluted 2,193,269 2,220,054 2,206,294 2,211,273 As a % of total revenue: Gross margin 39.5% 36.9% 39.0% 40.1% Selling, general and administrative 26.4% 32.6% 30.9% 31.2% Research and development 12.5% 14.3% 14.4% 13.1% Operating loss -9.6% -10.0% -9.1% -9.8% Net loss -4.3% -4.6% -2.2% -7.2%
(1) Includes $8,746 of goodwill amortization classified in cost of sales, $100 of goodwill amortization classified in cost of services and $3,648 of goodwill amortization classifed in research and development that would have been excluded if Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets" was in effect in 2001. Excluding the goodwill amortization would have resulted in an after-tax net loss of $58,708 or $(0.03) per diluted share. (2) Includes $42,109 of goodwill amortization classified in cost of sales, $189 of goodwill amortization classified in cost of services and $10,091 of goodwill amortization classifed in research and development that would have been excluded if Statement of Financial Accounting Standards No. 142 "Goodwill and Other Intangible Assets" was in effect in 2001. Excluding the goodwill amortization would have resulted in an after-tax net loss of $459,791 or $(0.21) per diluted share. EMC CORPORATION Consolidated Balance Sheets (in thousands, except per share amounts) (Unaudited)
December 31, December 31, 2002 2001 -------------- --------------- ASSETS Current assets: Cash and cash equivalents $ 1,686,598 $ 2,129,019 Short-term investments 864,743 445,428 Accounts and notes receivable, less allowance for doubtful accounts of $50,551 and $36,169 881,325 1,348,569 Inventories 437,805 583,985 Deferred income taxes 250,197 287,597 Other current assets 96,580 128,644 -------------- --------------- Total current assets 4,217,248 4,923,242 Long-term investments 3,134,290 2,509,112 Property, plant and equipment, net 1,624,396 1,827,331 Intangible and other assets, net 570,587 583,110 Deferred income taxes 43,926 46,840 -------------- --------------- Total assets $ 9,590,447 $ 9,889,635 ============== =============== LIABILITIES & STOCKHOLDERS' EQUITY Current liabilities: Notes payable and current portion of long-term obligations $ 27,507 $ 56,677 Accounts payable 429,732 424,132 Accrued expenses 948,357 1,024,211 Income taxes payable 187,695 315,368 Deferred revenue 448,359 359,026 -------------- --------------- Total current liabilities 2,041,650 2,179,414 Deferred Revenue 156,412 10,237 Other Liabilities 166,383 99,164 Commitments and contingencies Stockholders' equity: Series preferred stock, par value $.01; authorized 25,000 shares, none outstanding - - Common stock, par value $.01; authorized 6,000,000 shares; issued 2,235,930 and 2,221,442 shares 22,359 22,214 Additional paid-in capital 3,580,025 3,470,325 Deferred compensation (10,762) (29,209) Retained earnings 4,070,049 4,188,755 Accumulated other comprehensive loss, net (53,488) (33,007) Treasury stock, at cost; 50,555 and 1,060 shares (382,181) (18,258) -------------- --------------- Total stockholders' equity 7,226,002 7,600,820 -------------- --------------- Total liabilities and stockholders' equity $ 9,590,447 $ 9,889,635 ============== ===============
EMC CORPORATION Consolidated Statements of Cash Flows (in thousands) (Unaudited)
For the Twelve Months Ended --------------------------- December 31, 2002 December 31, 2001 ----------------- ----------------- Cash flows from operating activities: Net loss $ (118,706) $ (507,712) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 653,686 654,698 Noncash restructuring, inventory and other special charges (reversals) (26,027) 449,364 Other than temporary declines in equity investments 6,315 106,560 Amortization of deferred compensation 13,077 19,514 Provision for doubtful accounts 35,171 32,711 Deferred income taxes, net 74,088 (227,429) Net loss on disposal of property, plant, and equipment 26,405 2,282 Tax benefit from stock options exercised 34,291 137,901 Minority interest - 29 Changes in assets and liabilities: Accounts and notes receivable 435,613 806,002 Inventories 240,377 127,581 Other assets 64,918 (19,303) Accounts payable 4,240 (78,429) Accrued expenses (74,886) 201,301 Income taxes payable (158,308) (157,007) Deferred revenue 236,813 69,637 Other liabilities (1,333) 13,558 -------------- ------------- Net cash provided by operating activities 1,445,734 1,631,258 -------------- ------------- Cash flows from investing activities: Additions to property, plant and equipment (391,076) (889,309) Proceeds from sales of property, plant and equipment 6 17,310 Capitalized software development costs (126,678) (120,724) Purchases of short and long-term available-for-sale securities (8,437,486) (4,981,376) Sales of short and long-term available-for-sale securities 7,199,476 4,445,271 Maturity of short and long-term available-for-sale securities 226,408 126,683 Purchase of other assets (25,050) - Business acquisition, net of cash acquired (21,993) (111,455) -------------- ------------- Net cash used by investing activities (1,576,393) (1,513,600) -------------- ------------- Cash flows from financing activities: Issuance of common stock 80,924 170,284 Purchase of treasury stock (363,923) (18,258) Payment of long-term and short-term obligations (29,694) (16,859) Issuance of long-term and short-term obligations 1,516 40,206 Cash portion of McDATA Corporation spin-off dividend - (141,981) -------------- ------------- Net cash provided (used) by financing activities (311,177) 33,392 -------------- ------------- Effect of exchange rate changes on cash (585) (5,252) -------------- ------------- Net increase (decrease) in cash and cash equivalents (442,421) 145,798 Cash and cash equivalents at beginning of period 2,129,019 1,983,221 -------------- ------------- Cash and cash equivalents at end of period $ 1,686,598 $ 2,129,019 ============== ============= Non-cash activity: Exchange of net assets for equity investment $ 3,560 $ - Distribution of net assets in McData Corporation dividend - 234,152 Issuance of capital lease obligations - 24,490 Options issued in business acquisitions - 1,050
EMC CORPORATION Supplemental Schedule of Earnings Adjusted to Expense Stock Options (in thousands, except per share amounts) (Unaudited)
Three Months Ended Twelve Months Ended --------------------------------- -------------------------------- December 31, December 31, December 31, December 31, 2002 2001 2002 2001 --------------------------------- -------------------------------- Net loss $ (63,916) $ (70,162) $ (118,706) $ (507,712) Stock option expense (90,168) (97,820) (356,415) (335,703) --------------------------------- -------------------------------- Adjusted net loss $ (154,084) $ (167,982) $ (475,121) $ (843,415) ================================= ================================ Net loss per weighted average share, basic - as reported $ (0.03) $ (0.03) $ (0.05) $ (0.23) ================================= ================================ Net loss per weighted average share, diluted - as reported $ (0.03) $ (0.03) $ (0.05) $ (0.23) ================================= ================================ Adjusted net loss per weighted average share, basic $ (0.07) $ (0.08) $ (0.22) $ (0.38) ================================= ================================ Adjusted net loss per weighted average share, diluted $ (0.07) $ (0.08) $ (0.22) $ (0.38) ================================= ================================
EMC CORPORATION SUPPLEMENTAL FINANCIAL DATA REVENUE ANALYSIS (IN THOUSANDS) (UNAUDITED) REVENUE COMPONENTS
Q1 2001 Q2 2001 Q3 2001 Q4 2001 YTD 2001 ------------------------------------------------------------------ STORAGE REVENUE Information Storage Systems $ 1,564,312 $ 1,225,600 $ 675,591 $ 841,741 $ 4,307,244 Information Storage Software 467,519 497,538 242,521 352,444 1,560,022 Information Storage Services 231,986 231,995 236,734 271,559 972,274 TOTAL INFORMATION STORAGE REVENUES 2,263,817 1,955,133 1,154,846 1,465,744 6,839,540 Other Businesses 80,978 65,722 57,427 46,966 251,093 ------------------------------------------------------------------ TOTAL CONSOLIDATED REVENUES $ 2,344,795 $ 2,020,855 $ 1,212,273 $ 1,512,710 $ 7,090,633 ==================================================================
Q1 2002 Q2 2002 Q3 2002 Q4 2002 YTD 2002 ------------------------------------------------------------------ STORAGE REVENUE Information Storage Systems $ 741,578 $ 779,109 $ 662,417 $ 802,196 $ 2,985,300 Information Storage Software 282,323 320,568 283,591 346,611 1,233,093 Information Storage Services 238,530 251,148 279,217 309,472 1,078,367 TOTAL INFORMATION STORAGE REVENUES 1,262,431 1,350,825 1,225,225 1,458,279 5,296,760 Other Businesses 39,547 36,713 34,213 31,119 141,592 ------------------------------------------------------------------ TOTAL CONSOLIDATED REVENUES $ 1,301,978 $ 1,387,538 $ 1,259,438 $ 1,489,398 $ 5,438,352 ==================================================================
NETWORKED STORAGE REVENUE
Q3 2001 Q4 2001 Q1 2002 Q2 2002 Q3 2002 Q4 2002 --------------------------------------------------------------------------- NETWORKED STORAGE REVENUE, AS PREVIOUSLY CALCULATED $ 449,193 $ 682,443 $ 561,747 $ 597,323 N/A N/A =========================================================================== NETWORKED STORAGE REVENUE, REVISED $ 627,706 $ 847,413 $ 749,346 $ 777,263 $ 689,205 $ 894,583 =========================================================================== NETWORKED STORAGE REVENUE, REVISED, AS A % OF INFORMATION STORAGE SYSTEMS AND SOFTWARE REVENUE 68% 71% 73% 71% 73% 78% ===========================================================================
NOTE: THE REVISED NETWORKED STORAGE REVENUE INCLUDES NETWORKED INFORMATION STORAGE SYSTEMS AND SOFTWARE REVENUE NOT CAPTURED IN THE PREVIOUS CALCULATION. THE REVISED CALCULATION INCLUDES UNITS SOLD INTO AN EXISTING NETWORKED ENVIRONMENT, UPGRADES AND NETWORKED INFORMATION STORAGE SYSTEMS AND SOFTWARE SOLD THROUGH CHANNELS TO END CUSTOMERS. Note: Amounts may not foot due to rounding -----END PRIVACY-ENHANCED MESSAGE-----