HOPKINTON, MA -- EMC Corporation (NYSE:EMC) today reported financial results for the third quarter of 2001. Total consolidated revenue for the third quarter was $1.21 billion, 47% lower than the third quarter of 2000. Excluding the impact of a pre-tax restructuring charge of $825 million incurred during the quarter, EMC reported a pro-forma loss of $270 million, or $0.12 per share. Including the impact of the charge, EMC reported a consolidated loss of $945 million, or $0.43 per share. The charge includes the cost of excess inventory, workforce reduction, facilities consolidation, and the write down of certain investments. The ongoing reduction of operating costs includes lowering EMC's worldwide employee population by approximately 4,000 people, an increase over the company's previously announced estimate. This reduction, when completed, will bring the EMC workforce to approximately 19,000 employees. "This is a very difficult time for nearly all businesses," said Mike Ruettgers, EMC Executive Chairman. "Like many technology companies, we normally complete most of our business in the third month of every quarter. We came out of the summer and launched a completely refreshed lineup of Symmetrix Enterprise Storage systems that extend our technology lead and lower our customers' costs. That announcement took place on September 10th. The next day, the world changed. The focus of many of our customers and employees turned to assisting those affected by the tragedies, helping companies continue their information flows, or simply navigating through an even slower pace of business." "EMC will continue to do everything under our control to blaze a leadership trail through the economic difficulties," said Joe Tucci, EMC's President and CEO. "Our networked information storage solutions, enabled by the best hardware and the best software available anywhere for managing and protecting large volumes of mission-critical information, will continue to set the standard. The work that our people and our technology did in helping dozens of customers through the events of September 11th is a tribute to the people of EMC. It also has made the necessity of advanced business continuance solutions hit home for organizations around the world. Today's world requires much more than traditional disaster recovery capabilities and simple information protection measures. EMC's longtime leadership in providing the highest levels of business continuance has never been more relevant." "Even as the global economic environment continues to deteriorate, our strategy is clear," Tucci continued. "We will continue to invest more in R&D than any company in this category. We are at the very beginning of the most impressive string of major new technology introductions in our history, and we will not waver from that path. At the same time, we also will continue to align our cost structure with the realities of this climate — and do so without sacrificing our ability to deliver the best technology or our industry-leading customer satisfaction levels. The human dimension of cutting costs is the most painful part of managing in this environment, and I would like to thank each and every EMC employee who has been a part of our incredible success in recent years." Tucci continued, "Our cost-cutting initiatives implemented in the second quarter enabled us to remove approximately $58 million in operating expenses in the third quarter. This is good progress, but it is not enough in the current environment. We expect that our expanded cost cutting will yield ongoing annual cost savings of about $800 million by the middle of next year." EMC's financial resources are an indicator of how well the company is positioned to resume profitable growth when the global economy turns around. EMC generated $85 million in cash during the third quarter, increasing cash and investments to $4.97 billion at the end of the quarter, with virtually no debt. Cash and investments represent approximately 50% of EMC's total assets. Highlights of the third quarter included major EMC wins at the following customers: Bank One Sodexho North America Bayer Shanghai Stock Exchange HealthSouth E-Plus Mobilfunk (Germany) Industrial Light & Magic HSBC Bank Brasil On September 10th EMC announced a complete new line of Symmetrix systems and enhanced software functionality, enabling customers to achieve unprecedented levels of consolidation while sharply reducing their cost of ownership. Also during the quarter, EMC outlined the next major evolution for its software leadership -- Automated Information Storage, a vision and set of products for delivering open, networked information storage solutions with increasingly automated management software. Other highlights of the third quarter included DaimlerChrysler selecting EMC as one of only two IT vendors to be awarded for "superior service and industry-driving product innovations" at its first-ever IT Suppliers Day; readers of InfoWorld Magazine honoring EMC Celerra HighRoad software as the industry's Storage Product of the Year; EMC extending the reach of its market-leading EMC ControlCenter™ Database Tuner performance management software with support for EMC CLARiiON® storage systems in Oracle database environments, and the addition of IBM DB2 UDB support for EMC Symmetrix® Enterprise Storage systems; EMC tripling the distance possible with Fibre Channel- or ESCON-based storage networks, helping customers more efficiently manage challenges ranging from increasing information workloads and cost constraints to rolling power blackouts and natural disasters; and the addition of significant new enhancements to EMC® Data Manager (EDM™). For further information visit www.emc.com