8-K

UNITED STATES

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): April 23, 2008

EMC CORPORATION

(Exact Name of Registrant as Specified in 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)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On April 23, 2008, EMC Corporation (“EMC”) issued a press release announcing financial results for the quarter ended March 31, 2008. The press release is attached hereto as Exhibit 99.1 and incorporated by reference herein.

The information in this Item 2.02 and the Exhibit attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Press release of EMC Corporation dated April 23, 2008

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/ David I. Goulden
	David I. Goulden
	Executive Vice President and Chief Financial Officer

Date: April 23, 2008

3

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of EMC Corporation dated April 23, 2008

EX-99.1

Exhibit 99.1

Contact:	Dave Farmer
	508-293-7206
	farmer_dave@emc.com

EMC POSTS RECORD FIRST-QUARTER REVENUE

Achieves Double-Digit Revenue Growth in Systems, Software and Services

and Across U.S., Europe, and Asia Pacific

HOPKINTON, Mass. – April 23, 2008 – EMC Corporation (NYSE: EMC), the world leader in information infrastructure solutions, today announced all-time record first-quarter revenue and its 19^th consecutive quarter of double-digit year-over-year revenue growth. EMC’s total consolidated revenue for the first quarter of 2008 was $3.47 billion, an increase of 17% over the $2.98 billion reported for the first quarter of 2007.

First-quarter GAAP net income was $268.8 million, or $0.13 per diluted share, which included a $79.2 million non-cash charge for in-process research and development (IPR&D) resulting from acquisitions completed during the quarter. Excluding this charge, net income was $348.0 million or $0.16 per diluted share. Non-GAAP first-quarter net income, which excludes the IPR&D charge and other items¹, was $477.3 million or $0.23 per diluted share, 28% higher than the non-GAAP earnings per diluted share of $0.18 for the year-ago period.

During the quarter, EMC generated operating cash flow of $918.3 million, an increase of 14% compared with the same period a year ago, and free cash flow of $717.5 million, an increase of 22% year-over-year.

Joe Tucci, EMC Chairman, President and Chief Executive Officer, said, “EMC is off to a solid start to the year, and we remain on track to achieve the 2008 financial targets we set for the business at the beginning of the year. We entered the year with the strongest and most diversified product, solutions and services portfolio in our history. From the consumer to the small- and medium-sized business and up through the enterprise, we are delivering to the market high-quality, innovative IT solutions faster than ever before. These offerings remain squarely aligned with top CIO spending priorities and are optimized to help businesses manage their information and drive IT efficiency throughout their organizations.”

“Looking ahead, EMC’s growth opportunities are many as we continue to aggressively strengthen our core business, grow into new and adjacent markets and expand our presence around the globe,” Tucci added. “The power of our technology portfolio positions us well to extend our leadership and continue gaining share.”

Compared with the first quarter of 2007, EMC systems revenue increased 10% and represented 41% of total first-quarter revenue. Software license and maintenance revenue increased 18% and accounted for 41% of total revenue. Other services revenue grew 30% and represented 18% of total revenue.

From a geographic perspective, revenue from North America increased 14% compared with the same period a year ago and represented 57% of total first-quarter revenue. Revenue from operations outside of North America grew 21% year-over-year, driven by double-digit revenue growth in each of EMC’s Europe, Middle East and Africa (EMEA), Asia-Pacific and Japan (APJ) and Latin America regions.

David Goulden, EMC Executive Vice President and Chief Financial Officer, said, “EMC demonstrated strong revenue growth and operating performance. Our focus on investing in and delivering the right solutions to the right markets continues as the driving force behind our successful and diversified business model. This focus will serve EMC, our customers and shareholders well as we not only sustain but extend our market and technology leadership.”

In the first quarter, EMC continued to return value to shareholders by leveraging its strong cash position, spending approximately $557.2 million to repurchase approximately 36 million shares of EMC. This completed the company’s $2 billion share repurchase plan it embarked upon in January 2007. In addition, EMC recently increased its share repurchase authorization by 250 million shares.

First-Quarter Highlights

Revenue from EMC’s Information Storage business, which includes revenue from storage systems, storage software and related customer and professional services, reached $2.71 billion, an increase of 12% compared with the year-ago period. Growth in the Information Storage business was driven by strong demand for EMC’s storage products and professional services portfolio across all major geographies. EMC Symmetrix revenue increased 8%, EMC CLARiiON revenue increased 19% and EMC Celerra network-attached storage revenue increased more than 50%, each compared with the year-ago quarter. During the quarter, EMC continued to expand its storage portfolio with new products and capabilities that provide customers with ease-of-use, proven reliability and information storage innovation. For example, EMC became the first enterprise storage vendor to integrate flash-based solid state drives (SSDs) into its core product portfolio, enabling Symmetrix DMX-4 customers to achieve unprecedented performance and energy efficiency.

EMC’s Content Management and Archiving business increased first-quarter revenue 8% year-over-year to $185.2 million. Organizations around the world continued to choose EMC’s enterprise content management and archiving solutions to effectively manage their growing volumes of unstructured data, while improving business efficiencies, increasing productivity, and meeting compliance and risk mitigation requirements. Also during the first quarter, EMC’s Content Management and Archiving business captured several honors, including an ACE award from ECM Connection at the AIIM International Conference.

For the first quarter of 2008, revenue from RSA, The Security Division of EMC, grew 13% year-over-year, reaching $134.9 million. This growth was driven primarily by global demand for the division’s risk-based authentication solutions, anti-fraud services, and security information and event management solutions. Companies across industries and around the world continued to choose the powerful portfolio of RSA security products and services to address their

critical requirements around data security, security information management and data loss prevention, and to drive business acceleration and innovation across their organizations.

VMware (NYSE: VMW), which is majority-owned by EMC, had first-quarter revenues of $438.2 million, an increase of approximately 71% compared to the year-ago quarter. VMware is the global leader in virtualization solutions from the desktop to the datacenter. Customers of all sizes rely on VMware to reduce capital and operating expenses, ensure business continuity, strengthen security and be more energy efficient. With 2007 revenues of $1.32 billion, more than 100,000 customers, and nearly 14,000 partners, VMware is one of the fastest growing public software companies. Visit http://ir.vmware.com for more information about the virtualization software leader’s first-quarter financial results.

About EMC

EMC Corporation (NYSE: EMC) is the world’s leading developer and provider of information infrastructure technology and solutions that enable organizations of all sizes to transform the way they compete and create value from their information. Information about EMC’s products and services can be found at www.EMC.com.

# # #

¹Other items excluded are stock-based compensation, intangible amortization and a tax benefit recognized in the first quarter of 2007. See attached schedules for reconciliation of GAAP to non-GAAP.

EMC, Documentum, CLARiiON, Celerra and Symmetrix are registered trademarks of EMC Corporation. Symmetrix DMX is a trademark of EMC Corporation. VMware is a registered trademark of VMware, Inc. RSA is a registered trademark of RSA Security Inc. All other trademarks used are the property of their respective owners.

Forward-Looking Statements

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) our ability to protect our proprietary technology; (iv) risks associated with managing the growth of our business, including risks associated with acquisitions and investments and the challenges and costs of integration, restructuring and achieving anticipated synergies; (v) fluctuations in VMware, Inc.’s operating results and risks associated with trading of VMware stock; (vi) competitive factors, including but not limited to pricing pressures and new product introductions; (vii) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (viii) component and product quality and availability; (ix) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (x) insufficient, excess or obsolete inventory; (xi) war or acts of terrorism; (xii) the ability to attract and retain highly qualified employees; (xiii) fluctuating currency exchange rates; and (xiv) 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.

Use of Non-GAAP Financial Measures

This release contains non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of EMC’s performance or liquidity, should be considered in addition to, not as a substitute for, measures of EMC’s financial performance or liquidity prepared in accordance with GAAP. EMC’s non-GAAP financial

measures may be defined differently than similar terms used by other companies, and accordingly, care should be exercised in understanding how EMC defines its non-GAAP financial measures.

Where specified in the accompanying schedules for various periods entitled “Reconciliation of GAAP to Non-GAAP,” certain items noted on each such specific schedule (including, where noted, amounts relating to tax benefits, in-process research and development charges, stock-based compensation expense and intangible amortization) are excluded from the non-GAAP financial measures.

EMC’s management uses the non-GAAP financial measures in the accompanying schedules to gain an understanding of EMC’s comparative operating performance (when comparing such results with previous periods or forecasts) and future prospects and excludes the above-listed items from its internal financial statements for purposes of its internal budgets and each reporting segment’s financial goals. These non-GAAP financial measures are used by EMC’s management in their financial and operating decision-making because management believes they reflect EMC’s ongoing business in a manner that allows meaningful period-to-period comparisons. EMC’s management believes that these non-GAAP financial measures provide useful information to investors and others (a) in understanding and evaluating EMC’s current operating performance and future prospects in the same manner as management does, if they so choose, and (b) in comparing in a consistent manner the Company’s current financial results with the Company’s past financial results.

This release also includes disclosures regarding free cash flow which is a non-GAAP financial measure. Free cash flow is defined as net cash provided by operating activities less additions to property, plant and equipment and capitalized software development costs. EMC uses free cash flow, among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than capital expenditures and capitalized software development costs. Management believes that information regarding free cash flow provides investors with an important perspective on the cash available to make strategic acquisitions and investments, repurchase shares, service debt and fund ongoing operations. As free cash flow is not a measure of liquidity calculated in accordance with GAAP, free cash flow should be considered in addition to, but not as a substitute for, the analysis provided in the statement of cash flows.

All of the foregoing non-GAAP financial measures have limitations. Specifically, the non-GAAP financial measures that exclude the items noted above do not include all items of income and expense that affect EMC’s operations. Further, these non-GAAP financial measures are not prepared in accordance with GAAP, may not be comparable to non-GAAP financial measures used by other companies and do not reflect any benefit that such items may confer on EMC. Management compensates for these limitations by also considering EMC’s financial results as determined in accordance with GAAP.

EMC CORPORATION

Consolidated Income Statements

(in thousands, except per share amounts)

Unaudited

	Three Months Ended
	March 31, 2008			March 31, 2007
Revenues:
Product sales	$	2,340,430		$	2,112,426
Services		1,129,629			862,579
		3,470,059			2,975,005
Cost and expenses:
Cost of product sales		1,074,583			1,038,478
Cost of services		486,081			366,587
Research and development		433,514			355,392
Selling, general and administrative		1,082,215			875,690
In-process research and development		79,204			—
Restructuring credits		(357	)		(2,670	)
Operating income		314,819			341,528
Investment income		77,140			52,139
Interest expense		(18,042	)		(18,293	)
Other (expense) income, net		(4,763	)		4,840
Income before taxes and minority interest		369,154			380,214
Income tax provision		94,155			67,607
Income before minority interest		274,999			312,607
Minority interest, net of taxes		(6,161	)		—
Net income	$	268,838		$	312,607
Net income per weighted average share, basic:	$	0.13		$	0.15
Net income per weighted average share, diluted:	$	0.13		$	0.15
Weighted average shares, basic		2,075,152			2,080,039
Weighted average shares, diluted		2,110,805			2,121,826

Reconciliation of GAAP to Non-GAAP

For the Three Months Ended March 31, 2008

(in thousands, except per share amounts)

Unaudited

	Revenue			Cost of Revenue			Research and Development			Selling, General and Administrative			Restructuring and IPR&D			Operating Income		Other Income, net		Income Before Taxes and Minority Interest		Income Tax Provision		Income Before Minority Interest		Minority Interest			Net Income			Net Income per Weighted Average Share, Basic			Net Income per Weighted Average Share, Diluted
EMC Consolidated GAAP	$	3,470,059		$	1,560,664		$	433,514		$	1,082,215		$	78,847		$	314,819	$	54,335	$	369,154	$	94,155	$	274,999	$	(6,161	)	$	268,838		$	0.130		$	0.127
IPR&D		—			—			—			—			(79,204	)		79,204		—		79,204		—		79,204		—			79,204		$	0.038		$	0.038
EMC Consolidated Adjusted (1)		3,470,059			1,560,664			433,514			1,082,215			(357	)		394,023		54,335		448,358		94,155		354,203		(6,161	)		348,042		$	0.168		$	0.164
Stock-based compensation expense		—			(18,312	)		(38,825	)		(61,950	)		—			119,087		—		119,087		27,831		91,256		(5,095	)		86,161		$	0.042		$	0.041
Intangible amortization		—			(38,198	)		(3,011	)		(24,791	)		—			66,000		—		66,000		22,533		43,467		(349	)		43,118		$	0.021		$	0.020
EMC Consolidated Non-GAAP (2)	$	3,470,059		$	1,504,154		$	391,678		$	995,474		$	(357	)	$	579,110	$	54,335	$	633,445	$	144,519	$	488,926	$	(11,605	)	$	477,321		$	0.230		$	0.225
EMC Information Infrastructure GAAP	$	3,031,889		$	1,483,604		$	315,428		$	890,640		$	78,847		$	263,370	$	51,696	$	315,066	$	85,436	$	229,630	$	—		$	229,630		$	0.111		$	0.109
IPR&D		—			—			—			—			(79,204	)		79,204		—		79,204		—		79,204		—			79,204		$	0.038		$	0.038
EMC Information Infrastructure Adjusted (3)		3,031,889			1,483,604			315,428			890,640			(357	)		342,574		51,696		394,270		85,436		308,834		—			308,834		$	0.149		$	0.146
Stock-based compensation expense		—			(12,136	)		(17,912	)		(44,412	)		—			74,460		—		74,460		18,834		55,626		—			55,626		$	0.027		$	0.026
Intangible amortization		—			(35,888	)		(3,011	)		(23,250	)		—			62,149		—		62,149		21,122		41,027		—			41,027		$	0.020		$	0.019
EMC Information Infrastructure Non-GAAP (4)	$	3,031,889		$	1,435,580		$	294,505		$	822,978		$	(357	)	$	479,183	$	51,696	$	530,879	$	125,393	$	405,486	$	—		$	405,486		$	0.195		$	0.192
VMware standalone GAAP	$	438,175		$	77,170		$	119,255		$	193,359		$	—		$	48,391	$	2,639	$	51,030	$	7,975	$	43,055	$	—		$	43,055		$	0.021		$	0.020
GAAP adjustments and eliminations		(5	)		(110	)		(1,169	)		(1,784	)		—			3,058		—		3,058		744		2,314		(6,161	)		(3,847	)	$	(0.002	)	$	(0.003	)
VMware within EMC		438,170			77,060			118,086			191,575			—			51,449		2,639		54,088		8,719		45,369		(6,161	)		39,208		$	0.019		$	0.018
Stock-based compensation expense		—			(6,176	)		(20,913	)		(17,538	)		—			44,627		—		44,627		8,997		35,630		(5,095	)		30,535		$	0.015		$	0.014
Intangible amortization		—			(2,310	)		—			(1,541	)		—			3,851		—		3,851		1,411		2,440		(349	)		2,091		$	0.001		$	0.001
VMware within EMC Non-GAAP (5)	$	438,170		$	68,574		$	97,173		$	172,496		$	—		$	99,927	$	2,639	$	102,566	$	19,126	$	83,440	$	(11,605	)	$	71,834		$	0.035		$	0.033
																									Wtd. Average Share O/S								2,075,152			2,110,805

(1) Represents EMC Consolidated GAAP excluding IPR&D.

(2) Represents EMC Consolidated Adjusted excluding stock-based compensation expense and intangible amortization.

(3) Represents EMC Information Infrastructure GAAP excluding IPR&D.

(4) Represents EMC Information Infrastructure Adjusted less stock-based compensation expense and intangible amortization.

(5) Represents VMware within EMC excluding stock-based compensation expense and intangible amortization.

Note: schedule may not add due to rounding

Reconciliation of GAAP to Non-GAAP

For the Three Months Ended March 31, 2007

(in thousands, except per share amounts)

Unaudited

	Revenue			Cost of Revenue			Research and Development			Selling, General and Administrative			Restructuring and IPR&D			Operating Income			Other Income, net		Income Before Taxes			Income Tax Provision			Net Income			Net Income per Weighted Average Share, Basic			Net Income per Weighted Average Share, Diluted
EMC Consolidated GAAP	$	2,975,005		$	1,405,065		$	355,392		$	875,690		$	(2,670	)	$	341,528		$	38,686	$	380,214		$	67,607		$	312,607		$	0.150		$	0.147
Tax benefits		—			—			—			—			—			—			—		—			19,912			(19,912	)	$	(0.010	)	$	(0.009	)
EMC Consolidated Adjusted (1)		2,975,005			1,405,065			355,392			875,690			(2,670	)		341,528			38,686		380,214			87,519			292,695		$	0.141		$	0.138
Stock-based compensation expense		—			(13,558	)		(23,442	)		(46,347	)		—			83,347			—		83,347			22,725			60,622		$	0.029		$	0.029
Intangible amortization		—			(29,007	)		(2,113	)		(17,123	)		—			48,243			—		48,243			17,040			31,203		$	0.015		$	0.015
EMC Consolidated Non-GAAP (2)	$	2,975,005		$	1,362,500		$	329,837		$	812,220		$	(2,670	)	$	473,118		$	38,686	$	511,804		$	127,284		$	384,520		$	0.185		$	0.181
EMC Information Infrastructure GAAP	$	2,718,987		$	1,362,538		$	289,490		$	761,257		$	(2,670	)	$	308,372		$	35,360	$	343,732		$	62,240		$	281,492		$	0.135		$	0.133
Tax benefits		—			—			—			—			—			—			—		—			19,912			(19,912	)	$	(0.010	)	$	(0.009	)
EMC Information Infrastructure Adjusted (3)		2,718,987			1,362,538			289,490			761,257			(2,670	)		308,372			35,360		343,732			82,152			261,580		$	0.126		$	0.123
Stock-based compensation expense		—			(13,028	)		(17,050	)		(41,625	)		—			71,703			—		71,703			19,801			51,902		$	0.025		$	0.024
Intangible amortization		—			(23,792	)		(2,113	)		(16,053	)		—			41,958			—		41,958			14,715			27,243		$	0.013		$	0.013
EMC Information Infrastructure Non-GAAP (4)	$	2,718,987		$	1,325,718		$	270,327		$	703,579		$	(2,670	)	$	422,033		$	35,360	$	457,393		$	116,667		$	340,726		$	0.164		$	0.161
VMware standalone GAAP	$	258,695		$	44,024		$	54,958		$	113,331		$	—		$	46,382		$	3,036	$	49,418		$	8,338		$	41,080		$	0.020		$	0.019
GAAP adjustments and eliminations		(2,677	)		(1,497	)		10,944			1,102			—			(13,226	)		290		(12,936	)		(2,971	)		(9,965	)	$	(0.005	)	$	(0.005	)
VMware within EMC		256,018			42,527			65,902			114,433			—			33,156			3,326		36,482			5,367			31,115		$	0.015		$	0.015
Stock-based compensation expense		—			(530	)		(6,392	)		(4,722	)		—			11,644			—		11,644			2,924			8,720		$	0.004		$	0.004
Intangible amortization		—			(5,215	)		—			(1,070	)		—			6,285			—		6,285			2,325			3,960		$	0.002		$	0.002
VMware within EMC Non-GAAP (5)	$	256,018		$	36,782		$	59,510		$	108,641		$	—		$	51,085		$	3,326	$	54,411		$	10,617		$	43,794		$	0.021		$	0.021
																				Wtd. Average Share O/S											2,080,039			2,121,826

(1) Represents EMC Consolidated GAAP excluding special tax benefits.

(2) Represents EMC Consolidated Adjusted excluding stock-based compensation expense and intangible amortization.

(3) Represents EMC Information Infrastructure GAAP excluding special tax benefits.

(4) Represents EMC Information Infrastructure Adjusted excluding stock-based compensation expense and intangible amortization.

(5) Represents VMware within EMC excluding stock-based compensation expense and intangible amortization.

Note: schedule may not add due to rounding

EMC CORPORATION

Consolidated Balance Sheets

(in thousands, except per share amounts)

Unaudited

	March 31, 2008			December 31, 2007
ASSETS
Current assets:
Cash and cash equivalents	$	4,978,446		$	4,482,211
Short-term investments		635,056			1,644,703
Accounts and notes receivable, less allowance for doubtful accounts of $33,732 and $34,389		1,897,712			2,307,512
Inventories		953,085			877,243
Deferred income taxes		515,122			475,544
Other current assets		330,673			265,889
Total current assets		9,310,094			10,053,102
Long-term investments		2,246,942			1,845,572
Property, plant and equipment, net		2,141,922			2,159,396
Intangible assets, net		939,204			940,077
Other assets, net		803,190			755,001
Goodwill, net		6,774,690			6,531,506
Total assets	$	22,216,042		$	22,284,654
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	881,481		$	840,886
Accrued expenses		1,540,050			1,696,309
Income taxes payable		82,110			146,104
Deferred revenue		1,818,956			1,724,909
Total current liabilities		4,322,597			4,408,208
Income taxes payable		259,117			246,951
Deferred revenue		1,153,674			1,053,394
Deferred income taxes		286,843			288,175
Long-term convertible debt		3,450,000			3,450,000
Other liabilities		159,446			127,621
Total Liabilities		9,631,677			9,574,349
Minority interest		209,959			188,988
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 2,067,237 and 2,102,187 shares		20,672			21,022
Additional paid-in capital		2,617,571			3,038,455
Retained earnings		9,739,127			9,470,289
Accumulated other comprehensive loss		(2,964	)		(8,449	)
Total stockholders' equity		12,374,406			12,521,317
Total liabilities and stockholders' equity	$	22,216,042		$	22,284,654

EMC CORPORATION

Consolidated Statements of Cash Flows

(in thousands)

Unaudited

	Three Months Ended
	March 31, 2008			March 31, 2007
Cash flows from operating activities:
Cash received from customers	$	4,066,805		$	3,298,580
Cash paid to suppliers and employees		(3,027,739	)		(2,471,509	)
Dividends and interest received		77,958			57,824
Interest paid		(2,865	)		(3,201	)
Income taxes paid		(195,867	)		(73,011	)
Net cash provided by operating activities		918,292			808,683
Cash flows from investing activities:
Additions to property, plant and equipment		(146,512	)		(170,526	)
Capitalized software development costs		(54,321	)		(51,920	)
Purchases of short and long-term available for sale securities		(608,819	)		(1,891,806	)
Sales and maturities of short and long-term available for sale securities		1,196,985			2,192,202
Acquisitions, net of cash acquired		(337,809	)		(3,261	)
Other		(3,030	)		(860	)
Net cash provided by investing activities		46,494			73,829
Cash flows from financing activities:
Issuance of common stock from the exercise of stock options		27,397			103,312
Issuance of VMware's common stock from the exercise of stock options		23,669			—
Repurchase of EMC common stock		(557,244	)		(488,662	)
Excess tax benefits from stock based compensation		28,511			12,812
Payment of short and long-term obligations		(3,782	)		(620	)
Proceeds from short and long-term obligations		1,114			2,229
Net cash used in financing activities		(480,335	)		(370,929	)
Effect of exchange rate changes on cash		11,784			7,685
Net increase in cash and cash equivalents		496,235			519,268
Cash and cash equivalents at beginning of period		4,482,211			1,828,106
Cash and cash equivalents at end of period	$	4,978,446		$	2,347,374
Reconciliation of net income to net cash provided by operating activities:
Net income	$	268,838		$	312,607
Adjustments to reconcile net income to net cash provided by operating activities:
Minority interest in subsidiary		6,161			—
Depreciation and amortization		254,619			212,848
Non-cash restructuring and other special charges		80,970			—
Stock-based compensation expense		119,087			83,347
Increase/(decrease) in provision for doubtful accounts		3,975			(787	)
Deferred income taxes, net		(26,656	)		(457	)
Excess tax benefits from stock based compensation		(28,511	)		(12,812	)
Other		(4,887	)		1,980
Changes in assets and liabilities, net of acquisitions:
Accounts and notes receivable		416,788			142,873
Inventories		(28,174	)		18,302
Other assets		(78,881	)		(11,068	)
Accounts payable		27,501			45,685
Accrued expenses		(253,761	)		(150,962	)
Income taxes payable		(46,545	)		(4,952	)
Deferred revenue		175,983			181,489
Other liabilities		31,785			(9,410	)
Net cash provided by operating activities	$	918,292		$	808,683

EMC CORPORATION

Reconciliation of Cash Flow from Operations to Free Cash Flow

(in thousands)

Unaudited

	Q1 2008			Q1 2007
EMC Consolidated:
Cash flows from Operations	$	918,292		$	808,683
Capital Expenditures		(146,512	)		(170,526	)
Capitalized Software		(54,321	)		(51,920	)
Free Cash Flow	$	717,459		$	586,237
VMware within EMC:
Cash flows from Operations	$	106,058		$	136,418
Capital Expenditures		(41,019	)		(47,817	)
Capitalized Software		(4,164	)		(6,959	)
Free Cash Flow	$	60,875		$	81,642
EMC Information Infrastructure:
Cash flows from Operations	$	812,234		$	672,265
Capital Expenditures		(105,493	)		(122,709	)
Capitalized Software		(50,157	)		(44,961	)
Free Cash Flow	$	656,584		$	504,595

Cash flows from operations, capital expenditures and free cash flow for VMware within EMC and EMC Information Infrastructure have been adjusted to exclude the impact of purchases of equipment by VMware from EMC which have been recorded as capital expenditures by VMware on a stand-alone basis but are eliminated in consolidation. Additionally, cash flow from operations, capital expenditures and free cash flow for VMware within EMC and EMC Information Infrastructure have been adjusted for VMware's capital expenditures for its headquarters facilities which were reimbursed by EMC during Q1 2007. Also, cash flows from operations and free cash flow for VMware within EMC have been adjusted for shares repurchased for tax withholdings on the vesting of restricted stock which have been recorded by VMware on a stand-alone basis as a financing activity but as an operating activity in consolidation. Had these items not been adjusted, cash flows from operations, capital expenditures and free cash flow for VMware within EMC would have been $133,180, $49,022 and $79,994, for Q1 2008 and $104,902, $16,584 and $81,646 for Q1 2007.

EMC Corporation

Supplemental Revenue Analysis

(in thousands)

Unaudited

Revenue Components

	Q1 2007			Q2 2007			Q3 2007			Q4 2007			YTD 2007			Q1 2008
Consolidated Revenues
Systems	$	1,305,766		$	1,354,438		$	1,411,367		$	1,688,565		$	5,760,136		$	1,440,123
Software:
Software License		806,660			867,917			921,517			1,055,746			3,651,840			900,307
Software Maintenance		382,080			400,233			426,198			472,264			1,680,775			506,218
Total Software License & Maintenance		1,188,740			1,268,150			1,347,715			1,528,010			5,332,615			1,406,525
Other Services		480,499			502,084			540,672			614,199			2,137,454			623,411
Total Consolidated Revenues	$	2,975,005		$	3,124,672		$	3,299,754		$	3,830,774		$	13,230,205		$	3,470,059
Percentage impact to EMC revenue growth rate due to changes in exchange rates from the prior year		2.1	%		2.1	%		1.8	%		3.2	%		2.3	%		2.3	%

EMC Corporation

Supplemental Revenue Analysis

(in thousands)

Unaudited

Supplemental Revenue Data

	Q1 2007		Q2 2007		Q3 2007		Q4 2007		YTD 2007		Q1 2008
Storage Systems Revenue	$	1,302,740	$	1,347,357	$	1,405,139	$	1,682,395	$	5,737,631	$	1,433,190
Storage Software:
Storage Software License		486,558		512,521		515,056		561,622		2,075,757		470,449
Storage Software Maintenance		234,796		242,940		252,642		271,848		1,002,226		291,556
Total Storage Software License & Maintenance		721,354		755,461		767,698		833,470		3,077,983		762,005
Storage Other Services		402,834		425,200		450,450		516,782		1,795,266		516,634
Total Storage Revenue	$	2,426,928	$	2,528,018	$	2,623,287	$	3,032,647	$	10,610,880	$	2,711,829
Content Management and Archiving Systems Revenue	$	68	$	1,708	$	1,485	$	2,157	$	5,418	$	2,521
Content Management and Archiving Software:
Content Management and Archiving Software License		68,472		69,046		79,247		115,305		332,070		58,607
Content Management and Archiving Software Maintenance		60,339		60,416		61,595		70,590		252,940		73,758
Total Content Management and Archiving Software License & Maintenance		128,811		129,462		140,842		185,895		585,010		132,365
Content Management and Archiving Other Services		43,319		42,432		46,985		50,074		182,810		50,317
Total Content Management and Archiving Revenue	$	172,198	$	173,602	$	189,312	$	238,126	$	773,238	$	185,203
Security Systems Revenue	$	2,958	$	5,373	$	4,743	$	4,013	$	17,087	$	4,412
Security Software:
Security Software License		81,934		81,300		82,979		94,604		340,817		77,271
Security Software Maintenance		21,627		23,392		25,126		27,752		97,897		28,785
Total Security Software License & Maintenance		103,561		104,692		108,105		122,356		438,714		106,056
Security Other Services		13,342		14,890		20,016		21,226		69,474		24,389
Total Security Revenue	$	119,861	$	124,955	$	132,864	$	147,595	$	525,275	$	134,857
EMC Information Infrastructure Systems Revenue	$	1,305,766	$	1,354,438	$	1,411,367	$	1,688,565	$	5,760,136	$	1,440,123
EMC Information Infrastructure Software:
EMC Information Infrastructure Software License		636,964		662,867		677,282		771,531		2,748,644		606,327
EMC Information Infrastructure Software Maintenance		316,762		326,748		339,363		370,190		1,353,063		394,099
Total EMC Information Infrastructure Software License & Maintenance		953,726		989,615		1,016,645		1,141,721		4,101,707		1,000,426
EMC Information Infrastructure Other Services		459,495		482,522		517,451		588,082		2,047,550		591,340
Total EMC Information Infrastructure Revenue	$	2,718,987	$	2,826,575	$	2,945,463	$	3,418,368	$	11,909,393	$	3,031,889
VMware Software:
VMware Software License	$	169,696	$	205,050	$	244,235	$	284,215	$	903,196	$	293,980
VMware Software Maintenance		65,318		73,485		86,835		102,074		327,712		112,119
Total VMware Software License & Maintenance		235,014		278,535		331,070		386,289		1,230,908		406,099
VMware Other Services		21,004		19,562		23,221		26,117		89,904		32,071
Total VMware Revenue	$	256,018	$	298,097	$	354,291	$	412,406	$	1,320,812	$	438,170