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October 31, 1999

DG Numbers Hold Up After EMC Acquisition

By CBR Staff Writer

To give some comfort to analysts trying to build Data General Corp’s revenue into their EMC Corp models the company has broken out numbers for the company it just acquired. It also hopes that by reporting DG’s Aviion and services revenue and gross margin separately, it will show up the more favorable impact of Clariion on the storage business, according to Merrill Lynch & Co.

DG’s fourth quarter revenue showed a loss of $0.11 against estimates of $0.09 without charges, with revenue coming in at $375m, $4m or 2% off Merrill’s estimate. Revenue from sales of Aviion servers was $154m, $4m more than it had expected, while Clariion storage sales were up 2% year over year.

PCs are being canned but DG will continue to serve the DG/UX user base, high-end NT and NT consolidation markets, as well as NUMA servers. Clariion’s expected to contribute $100m to EMC’s fourth quarter and $600m to fiscal 2000. Aviion is expected to do $130m in the fourth quarter and $650m in the year. Clariion OEM represents about 80% of revenue with direct sales at 20%, but EMC looks to flip-flop that by the end of next year.

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