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) October 16, 2003

EMC CORPORATION

(Exact name of registrant as specified in its charter)

Massachusetts	1-9853	No. 04-2680009
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer 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 of EMC Corporation (“EMC”) dated October 16, 2003.

Item 12.    Results of Operations and Financial Condition

On October 16, 2003, EMC issued a press release announcing financial results for the quarter ended September 30, 2003. The press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

The information in this Form 8-K and the Exhibit attached hereto shall be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) and shall be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act.

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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: October 16, 2003

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of EMC Corporation dated October 16, 2003

EX-99.1

EXHIBIT 99.1

	Contact:	Greg Eden
		508-293-7195
FOR IMMEDIATE RELEASE		eden_greg@emc.com

EMC REPORTS THIRD QUARTER RESULTS,

ACCELERATING GROWTH AND

IMPROVING PROFITABILITY

Revenue Up 20% Year Over Year As Customers Continue to Embrace New Products

HOPKINTON, Mass. – October 16, 2003 – EMC Corporation (NYSE:EMC) today reported financial results for the third quarter of 2003, reflecting balanced double-digit growth across all major business segments and improved profitability.

Total consolidated revenue for the third quarter was $1.51 billion, 20% higher than the $1.26 billion reported for the third quarter of 2002. Net income for the third quarter was $159 million or $.07 per diluted share, including a $.02 benefit resulting from the favorable resolution of certain tax audits. This compares with net income of $21 million or $.01 per diluted share for the third quarter of 2002.

Joe Tucci, EMC’s President and CEO, said, “We are pleased that our third-quarter results reflect strong customer acceptance of EMC’s comprehensive lineup of automated networked storage solutions. We are on track to achieve double-digit growth for the year, which not many large technology companies will do in this challenging economic environment. With 11% revenue growth for the first nine months of 2003 compared with the same period in 2002, it is clear that we continue to gain market share and extend EMC’s lead as the world’s #1 provider of information storage solutions.”

Tucci continued, “With Tuesday’s announcement of our agreement to acquire Documentum and the pending completion of our acquisition of LEGATO, two complementary leaders in information management software, we are making the strategic moves necessary to enable our customers to manage all of their information according to its value to the business at every stage of its life, at the lowest total cost – creating the ultimate information lifecycle management company.”

EMC’s revenue growth was balanced across all major segments of its business. In particular, information storage software revenue grew to 23% of the company’s total revenue, driven by demand for replication, multi-platform management and content-addressed storage (CAS) software. Information storage systems revenue also had strong double-digit growth on a year-to-year basis, led by EMC’s new Symmetrix DMX and CLARiiON CX networked information storage systems. Double-digit revenue growth in information storage services was spurred by strong customer demand for EMC’s storage-focused professional services.

Bill Teuber, EMC’s Executive Vice President and Chief Financial Officer, said, “The blend of new products and crisp execution across the entire organization enabled EMC to turn in strong top- and bottom-line results in what is traditionally the most challenging quarter of the year. We enhanced our balance sheet by growing cash and investments by almost $130 million to nearly $6.2 billion during the quarter, while buying back nearly $100 million worth of the company’s stock.”

EMC’s rapid delivery of new products continued in the third quarter. Highlights include the unveiling of the next major wave of Symmetrix DMX systems, software and related technologies, including the new Symmetrix DMX3000, an entry-level Symmetrix DMX800 configuration, new advanced replication technology, native iSCSI connectivity and enhanced functionality for mainframe customers; the extension of EMC CLARiiON’s functional leadership through major enhancements to EMC Navisphere, EMC SnapView and EMC SAN Copy software; the strengthening of EMC’s open software portfolio with the addition of powerful new VisualSRM and VisualSAN software for small-and medium-sized organizations; and the introduction of EMC OpenScale, the world’s first automated “pay as you go” billing for storage infrastructure.

EMC continued to extend its market reach in the third quarter by announcing its agreement to acquire LEGATO Systems, Inc., and create the world’s most comprehensive portfolio of information storage software; partnering with BMC Software, the first independent software provider to resell EMC ControlCenter storage management software; and broadening its relationship with Oracle Corporation to include a new joint service available to help customers easily deploy Oracle^® Database with EMC network attached storage (NAS) technology.

Business Outlook

The following statements are based on current expectations. These statements assume the acquisition of LEGATO Systems, Inc., closes on or about October 20, 2003, and the acquisition of Documentum, Inc., closes at the beginning of January 2004. 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, except for the planned acquisitions of LEGATO Systems, Inc., and Documentum, Inc.

• Revenue in the fourth quarter of 2003 is expected to be between $1.74 billion and $1.78 billion;

• Earnings per share for the fourth quarter of 2003 are expected to be $.05 per diluted share including in-process R&D charges and other integration costs associated with the acquisition of LEGATO. These charges are expected to be $.02 per diluted share;

• EMC expects software license revenues to represent 26% of total revenues for 2004 and 27% of total revenues exiting the fourth quarter of 2004;

• EMC expects the acquisition of Documentum to dilute first quarter 2004 diluted earnings per share by $.02 per share, not to have any material impact to diluted earnings per share for the remainder of 2004 and to be slightly accretive to diluted earnings per share in 2005.

About EMC

EMC Corporation (NYSE: EMC) is the world leader in information storage systems, software, networks and services, providing automated networked storage solutions to help organizations get the maximum value from their information, at the lowest total cost, across every point in the information lifecycle. 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) risks associated with strategic investments and acquisitions, including the challenges and costs of closing, integration, restructuring and achieving anticipated synergies associated with the announced plans to acquire LEGATO Systems, Inc. and Documentum, Inc; (ii) adverse changes in general economic or market conditions; (iii) delays or reductions in information technology spending; (iv) the transition to new products, the uncertainty of customer acceptance of new product offerings, and rapid technological and market change; (v) insufficient, excess or obsolete inventory; (vi) competitive factors, including but not limited to pricing pressures; (vii) component quality and availability; (viii) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (ix) war or acts of terrorism; (x) the ability to attract and retain highly qualified employees; (xi) fluctuating currency exchange rates; and (xii) 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 disclaims any obligation to update any such-forward looking statements after the date of this release.

EMC CORPORATION

Consolidated Statements of Operations

(in thousands, except per share amounts)

Unaudited

	Three Months Ended						Nine Months Ended
	September 30, 2003			September 30, 2002			September 30, 2003			September 30, 2002
Revenues:
Net sales	$	1,145,659		$	946,055		$	3,321,700		$	3,070,349
Services		365,188			313,383			1,052,598			878,605
		1,510,847			1,259,438			4,374,298			3,948,954
Cost and expenses:
Cost of sales		658,581			605,021			1,932,660			1,892,883
Cost of services		177,149			180,788			524,618			524,996
Research and development		172,858			191,683			530,060			594,661
Selling, general and administrative		390,164			412,313			1,167,977			1,287,760
Restructuring and other special charges		1,696			—			25,785			—
Operating income (loss)		110,399			(130,367	)		193,198			(351,346	)
Investment income		45,473			73,071			149,796			186,419
Interest expense		(672	)		(2,763	)		(2,711	)		(8,344	)
Other expense, net		(3,842	)		(17,418	)		(9,826	)		(30,958	)
Income (loss) before taxes		151,358			(77,477	)		330,457			(204,229	)
Income tax provision (benefit)		(7,731	)		(98,738	)		54,446			(149,439	)
Net income (loss)	$	159,089		$	21,261		$	276,011		$	(54,790	)
Net income (loss) per weighted average share, basic	$	0.07		$	0.01		$	0.13		$	(0.02	)
Net income (loss) per weighted average share, diluted	$	0.07		$	0.01		$	0.12		$	(0.02	)
Weighted average shares, basic		2,186,213			2,203,063			2,186,679			2,210,956
Weighted average shares, diluted		2,213,875			2,207,989			2,208,230			2,210,956
As a % of total revenue:
Gross margin		44.7	%		37.6	%		43.8	%		38.8	%
Selling, general and administrative		25.8	%		32.7	%		26.7	%		32.6	%
Research and development		11.4	%		15.2	%		12.1	%		15.1	%
Operating income (loss)		7.3	%		-10.4	%		4.4	%		-8.9	%
Net income (loss)		10.5	%		1.7	%		6.3	%		-1.4	%

EMC CORPORATION

Consolidated Balance Sheets

(in thousands, except per share amounts)

Unaudited

	September 30, 2003			December 31, 2002
ASSETS
Current assets:
Cash and cash equivalents	$	1,606,769		$	1,686,598
Short-term investments		1,007,053			864,743
Accounts and notes receivable, less allowance for doubtful accounts of $39,993 and $50,551		722,334			881,325
Inventories		525,763			437,805
Deferred income taxes		238,572			250,197
Other current assets		105,544			96,580
Total current assets		4,206,035			4,217,248
Long-term investments		3,577,585			3,134,290
Property, plant and equipment, net		1,564,999			1,624,396
Intangible and other assets, net		437,086			365,557
Goodwill, net		217,130			205,030
Deferred income taxes		52,833			43,926
Total assets	$	10,055,668		$	9,590,447
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable and current portion of long-term obligations	$	9,389		$	27,507
Accounts payable		392,251			429,732
Accrued expenses		884,117			948,357
Income taxes payable		367,690			187,695
Deferred revenue		525,532			448,359
Total current liabilities		2,178,979			2,041,650
Deferred revenue		351,851			156,412
Other liabilities		66,848			166,383
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 2,245,522 and 2,235,930 shares		22,455			22,359
Additional paid-in capital		3,663,097			3,580,025
Deferred compensation		(4,381	)		(10,762	)
Retained earnings		4,346,060			4,070,049
Accumulated other comprehensive loss, net		(87,613	)		(53,488	)
Treasury stock, at cost; 59,982 and 50,555 shares		(481,628	)		(382,181	)
Total stockholders' equity		7,457,990			7,226,002
Total liabilities and stockholders' equity	$	10,055,668		$	9,590,447

EMC CORPORATION

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

	For the Nine Months Ended
	September 30, 2003			September 30, 2002
Cash flows from operating activities:
Net income (loss)	$	276,011		$	(54,790	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		389,910			496,476
Non-cash restructuring, inventory and other special charges (reversals)		5,732			(60,735	)
Amortization of deferred compensation		7,193			10,663
Provision for doubtful accounts		4,444			30,441
Deferred income taxes, net		12,783			51,428
Other		11,373			50,501
Changes in assets and liabilities:
Accounts and notes receivable		171,597			567,940
Inventories		(64,526	)		156,155
Other assets		(70,004	)		55,061
Accounts payable		(38,253	)		88,910
Accrued expenses		(66,741	)		(147,466	)
Income taxes payable		190,129			(107,006	)
Deferred revenue		275,700			118,707
Other liabilities		(95,403	)		(5,537	)
Net cash provided by operating activities		1,009,945			1,250,748
Cash flows from investing activities:
Additions to property, plant and equipment		(266,490	)		(305,351	)
Capitalized software development costs		(84,419	)		(95,754	)
Purchases of short and long-term available for sale securities		(4,591,509	)		(6,840,581	)
Sales of short and long-term available for sale securities		3,779,868			5,645,476
Maturities of short and long-term available for sale securities		186,389			187,397
Other		(40,314	)		(24,689	)
Net cash used in investing activities		(1,016,475	)		(1,433,502	)
Cash flows from financing activities:
Issuance of common stock		48,771			54,914
Purchase of treasury stock		(99,447	)		(243,063	)
Payment of long-term and short-term obligations		(27,831	)		(13,952	)
Proceeds from long-term and short-term obligations		4,609			1,512
Net cash used in financing activities		(73,898	)		(200,589	)
Effect of exchange rate changes on cash		599			(4,280	)
Net decrease in cash and cash equivalents		(79,829	)		(387,623	)
Cash and cash equivalents at beginning of period		1,686,598			2,129,019
Cash and cash equivalents at end of period	$	1,606,769		$	1,741,396
Non-cash activity:
Exchange of net assets for equity investment	$	—		$	3,560

EMC Corporation

Supplemental Financial Data

Revenue Analysis

(in thousands)

Unaudited

Revenue Components

	Q3 2002		Q4 2002		YTD 2002		Q1 2003			Q2 2003			Q3 2003			YTD 2003
Storage Revenue
Information Storage Systems	$	662,417	$	802,196	$	2,985,300	$	752,387		$	803,814		$	801,075		$	2,357,276
Information Storage Software		283,591		346,611		1,233,093		298,591			321,249			344,584			964,424
Information Storage Services		279,217		309,472		1,078,367		306,025			328,370			341,113			975,508
Total Information Storage Revenues		1,225,225		1,458,279		5,296,760		1,357,003			1,453,433			1,486,772			4,297,208
Other Businesses		34,213		31,119		141,592		27,148			25,867			24,075			77,090
Total Consolidated Revenues	$	1,259,438	$	1,489,398	$	5,438,352	$	1,384,151		$	1,479,300		$	1,510,847		$	4,374,298
Percentage impact to revenue from changes in exchange rates from the prior year								2.5	%		3.1	%		2.9	%
Supplemental Revenue Data
Symmetrix Hardware and Software Revenue (a)							$	574,944		$	618,297		$	624,847		$	1,818,088
CLARiiON Hardware and Software Revenue (a)								217,896			228,324			227,595			673,815
Connectivity Revenue (b)								130,290			136,578			136,637			403,505
EMC-only Platform Software Revenue (c)								199,791			211,461			228,994			640,246
Multi-Platform Software Revenue (d)								98,800			109,788			115,590			324,178

(a) Includes hardware, hardware upgrades and platform software.

(b) Includes Connectrix fibre channel switch/director revenues and Celerra file server revenue, exclusive of disk revenue.

(c) Includes software products that only work with EMC arrays.

(d) Includes software products that are designed to manage heterogenous environments including EMC and non-EMC arrays.

EMC CORPORATION

Supplemental Schedule of Earnings Adjusted to Expense Stock Options

(in thousands, except per share amounts)

Unaudited

	Three Months Ended						Nine Months Ended
	September 30, 2003			September 30, 2002			September 30, 2003			September 30, 2002
Net income (loss)	$	159,089		$	21,261		$	276,011		$	(54,790	)
Stock option expense		(91,505	)		(74,706	)		(278,746	)		(266,247	)
Adjusted net income (loss)	$	67,584		$	(53,445	)	$	(2,735	)	$	(321,037	)
Net income (loss) per weighted average share, basic—as reported	$	0.07		$	0.01		$	0.13		$	(0.02	)
Net income (loss) per weighted average share, diluted—as reported	$	0.07		$	0.01		$	0.12		$	(0.02	)
Adjusted net income (loss) per weighted average share, basic	$	0.03		$	(0.02	)	$	—		$	(0.15	)
Adjusted net income (loss) per weighted average share, diluted	$	0.03		$	(0.02	)	$	—		$	(0.15	)