Data storage hardware company EMC
EMC has seen its annual revenue decline from $8.8 billion in 2000 to $5.4 billion last year due to stalled corporate capital spending and steady competition from the likes of Network Appliance
Just last week, EMC acquired the rights to storage management software developed by BMC Software
With today's acquisition news, EMC also shared that it expects second-quarter revenue to click in at the high-end of expectations, around $1.475 billion, and earnings per share to be $0.03 to $0.04. For the year, the company was expected to earn $0.15 per share prior to the Legato acquisition.
With $260 million in annual sales, Legato is expected to reverse several years of losses and earn $0.10 per share in 2003. The company hasn't achieved free cash flow since 1999. Its new owner, EMC, has consistently generated free cash flow, including $928 million in 2002. The $24 billion acquirer fetches a 26 multiple to free cash flow.