Welcome and thank you for standing by. At this time all participants are in a listen-only mode. (Operator Instructions). Today's conference is being recorded. If you have ay objections, you may disconnect at this time. Now I will turn the meeting over to Mr. Tony Takazawa. You may begin.

Thank you. Good morning. Welcome to EMC's call to discuss our financial results for the Second Quarter of 2010. Today we are joined by Joe Tucci, EMC's Chairman and CEO and David Goulden, EMC's Executive Vice President and CFO. David will provide a few comments about the results we have released this morning. He will highlight some of EMC's activities this quarter and discuss our updated outlook for 2010. Joe will then spend some time to discuss in his view what is happening in the market, EMC's execution of the strategy and how EMC is positioned to help customers on the journey to the Private Cloud. After the prepared remarks, we will then open up the line to take your questions. I would like to point out that we will be referring to non-GAAP numbers in today's presentation unless otherwise indicated. The reconciliation of our non-GAAP comments to our GAAP results can be found in the disclosure today in our press release, supplemental schedules and the slides that accompany our presentation. All these are available for download within the investor relations section of emc.com. As always, we have provided detailed financial tables in our news release and on our corporate website. These include a lot of financial details but we do encourage you to take a look at them. The call this morning will contain forward-looking statements and information concerning factors that could cause actual results to differ can be found in EMC's filings with the U.S. Securities and Exchange Commission. And lastly I will note that an archive of today's presentation will be available following the call. With that it's now my pleasure to introduce David Goulden. David?

Thanks Tony. Good morning everyone and thank you for joining us today. I'm very pleased to report that EMC had another good quarter due to strong demand for our market leading solutions, our solid business model and great execution by the team. There are many highlights this quarter including record Q2 revenues of over $4 billion, up 24% and record Q2 non-GAAP net income of $596 million, up 66%, non-GAAP EPS of $0.28, up a robust 56%. Our storage business was up 21%. VMware grew revenue 48% over last year. Free cash flow was $1.6 billion for the first half, up 47% and non-GAAP operating margin of 20.7% improved a 120 bits sequentially. Once again we achieved our triple play. We gained market share, invested for the future, and improved profitability. Within our consolidated revenue which is up 24% we saw excellent growth storage as I mentioned, up 21% year-on-year. Security revenue grew 18%. Our information intelligence group revenue was roughly flat and VMware revenue grew an impressive 48%. Now let's take a closer look at some of the details within these business units. Within storage in the high end, Symmetrix product revenues were up 32% year-on-year as customers are embracing the capabilities of our high end solution. As the most powerful scalable storage solution on the market today V-Max clearly addresses customers needs as they build out their private cloud infrastructures. Our fully automated storage tiering software known as FAST is driving higher rate of SSD and ATA based storage in these systems, resulting in huge performance and cost improvements for our customers. As anticipated, following the introduction of FAST, we have seen penetration rates continue to rise in terms of SSD capacity per system, percentage of systems shift with SSD and the proportion of systems being shipped with…

Well, thanks David. I would like to begin by adding my welcome to all of you who are attending today's conference call, thanks for joining us. Overall, I was very pleased with our performance in Q2. We posted solid year-over-year and sequential growth numbers while establishing EMC and VMware as thought leader in the next major wave of computing, mainly the transformation of IT to IT as a service, commonly called cloud computing. This success would not have been possible without the hard work and dedication of the more than 45,000 people of EMC and VMware around the world. I want to thank them for their leadership and congratulate them on their accomplishments. I believe the top question on your mind has to be around the pockets of uncertainty that seem to pop up around the world and their affect on the global economy, and more specifically, how does will manifest itself in IT spending going forward. As we have said before, we at EMC expected and planned for our recovery in 2010, but we always believe it would be choppy. So, perhaps the best way to look at IT spending trends is by geography. The U.S. market continues to be good with good prospects. Our customers here are investing in information technologies to increase their levels of productivity while managing risk with a maniacal focus on maintaining solid compliance with their policies, best practices and laws of the land while ensuring proper governance and oversight. Turning to the international markets; in Europe, we are seeing moderate growth in IT spend, except in Southern Europe, we're definitely seen slowdown in IT purchases. In Latin America, the Middle-East, Africa, China, Southeast Asia and selected Eastern European countries, IT spending is robust and is exhibiting very solid double-digit growth. And lastly in…

Thanks Joe. Before we open the lines for your questions, as usual, we ask you to try and limit yourself to one question including clarifications. We thank you all for your cooperation in this matter. We open up the lines for questions, please.

Thank you. We will now begin the formal question-and-answer session. (Operator Instructions) Alex Kurtz, Merriman & Co., you make ask your question. Alex Kurtz - Merriman & Co.: Yeah. Thanks for taking the question. David, given the launch of all these new products in the mid-range, especially, around Unisphere, could you take us through the puts and takes on the gross margin impact given that the profile of the mid-range business is very different probably going in the next couple of years than it was when it was just CLARiiON and Celerra standalone products?

Well, I think Alex, what we talked about is the fact that the software stock becomes more and more important in the mid-range and as the software content in the mid-range platform increases, then that’s a good thing for gross margins going forward. Alex Kurtz - Merriman & Co.: Okay. And if you look, just this is follow up. V-Max seemed very strong in the quarter. Was that sort of a core driver for strength in gross margin within the core business group, or were there some other drivers that we should be thinking about?

No. Within the storage business, we saw a nice sequential growth in gross margin. On the product side, we had some good mix impact. If you look, obviously sequentially, actually, V-Max was relatively flat. But we did see good growth in the DD products, and a couple of other things that are driving higher margins. Obviously, volume helped us with the gross margins on the product side and on the services side; we actually saw a nice pickup in our professional services margin due to higher utilization. On the customer services side, revenue increase to be continued to keep our cost base relatively flat as we improve the efficiency of that business. So, good improvements across the board sequentially in the core business in margins.

Thanks Alex. Next question please.

Aaron Rakers of Stifel Nicolaus, you may ask your question.

Yeah, congratulations on the quarter. My question is also on the margin, though more so on the operating margin side. If I look back historically guys, for the second half relative to the first half of the year, it looks like ex-2009 you were able to drive about 200 to maybe even 300 basis points of operating margin expansion. Yesterday, we saw VMware raised their operating margin target for the full-year. You guys today talk about lowering or tempering your R&D growth for the full-year. So I'm curious of why 20 to 21% can't actually be moved higher here given those puts and takes. Stifel Nicolaus: Yeah, congratulations on the quarter. My question is also on the margin, though more so on the operating margin side. If I look back historically guys, for the second half relative to the first half of the year, it looks like ex-2009 you were able to drive about 200 to maybe even 300 basis points of operating margin expansion. Yesterday, we saw VMware raised their operating margin target for the full-year. You guys today talk about lowering or tempering your R&D growth for the full-year. So I'm curious of why 20 to 21% can't actually be moved higher here given those puts and takes.

Let me just, kind of a point you mentioned upon R&D, it’s a very minor change and certainly it's less than $15 million. So it doesn’t reboot the needle on margins. We still have internal plans to hire to up the 20s, to the 20% level, but we're just not quite on track against that right now.

Let me just add a little color. We have not cut back R&D budgets. Our R&D teams are still in coverage to find the best people, very high quality people and staff up. Obviously they're been vey picky in day-to-day, they hire and its -- they are hiring a little slower than actually I would like, but we are not cutting back R&D budgets. This is just kind of a reality. Go ahead, David.

Right so, on that base -- that’s a very small factor in variable margin performance. I think what you've got to recognize is that 2010 is not really a normal year. And trying to apply normality to 2010 I think is going to get us into a little bit of trouble. What I mean by that is clearly mentioned in Q1, and we saw the impacts of composite budget flush obviously we've done a little bit better than we expected in Q2. But I talked to you about some factors in the second half that are going to impact those kind of normal year-on-year compared and we've got some significant currency head wins in the second half, which is going to obviously impact our top line and most of the things that drive the margin improvement historically from the first half to second half is kind of volume related. You got to tie it back to that. We still feel comfortable in the 20 to 21% range, and obviously we'd like to come in towards the higher end of that. We are not going to increase that this point in time.

Okay, thanks Aaron. Next question please.

Brian Marshall, Gleacher & Company. You may ask your question. Brian Marshall - Gleacher & Company: Hi, thanks for taking my question. With regards to the second half outlook, due to some of the potential product transitions that might be occurring down the road in the mid-range, do you think its likely that V-Max will actually outgrow the mid-range and in the unified products in the second half of the year?

V-Max, because it’s a new category, and I keep referring to that traditionally all high-end systems which is still true today with the exception of V-Max scale-up. V-Max, we can now add, we call engines which are servers to have it just scale out and when we do that, to add a server and put a whole tier of SATA drives or D-Dupe's or in the future, even D-Dupe SATA drives there. I think it makes it very effective to consolidate a lot of mid-tier platforms. So some of our growth is coming out of the higher end of mid-tier as we consolidate mid-tier platforms so while V-Max, you can think of it as a high-end platform and certainly it is, it is definitely, definitely have an impact on the mid-tier as we consolidate there. Brian Marshall - Gleacher & Company: Thanks Joe. And as a quick follow-up, I would assume that would have a positive margin impact as well?

As we've said many times, ironically they're both good. If we grow mid-tier we get good margins. If we grow to high-end we get good margins. So its not -- they are not as substantially different as they were at one time years ago.

Thanks Brian. Next question, please?

Ben Reitzes of Barclays, you may ask your question.

Hey, thanks a lot. Can you guys talk about velocity of business throughout the quarter, and into next, and what you think about second half seasonality given currency? I guess it's about 150 million of a currency hit you guys are talking about for the second half that you absorb. So what is that due to seasonality that you expect as we go into the third and fourth quarter, and how you exited the second quarter? Barclays: Hey, thanks a lot. Can you guys talk about velocity of business throughout the quarter, and into next, and what you think about second half seasonality given currency? I guess it's about 150 million of a currency hit you guys are talking about for the second half that you absorb. So what is that due to seasonality that you expect as we go into the third and fourth quarter, and how you exited the second quarter?

Yeah Ben, you got the math right on the currency impacts, from where we though we were back in April, obviously all the math was based year-over-year, the currency impacts bigger than that, but compared to where we thought we were back n April, the currency change is about a $150 million because we thought for the full year we would be roughly flat back then. So, that is a factor, during the call in Q2 we were back to regularly normal seasonality, we mentioned that we saw some earlier seasonality in Q1 because of some kind of spillover, but I think what we saw in Q2 was a more normal demand environment, I think we really put our over achievements down to the fact that people just had a better appetite for our products and services because they are just satisfying customers paying points well. So, I think those accounts the key factors, I think one of the biggest differences that you mentioned before from were we were in April was that currency head wins.

And then heading into the back half what do you think that you have enough momentum with the new products that’s coming and new software and the V-Max and what not, to have normal seasonality in the back half?

Well I think that, if you just look at kind at our guidance, we came out of the first half, obviously it was down, I don’t expect you, but when we look ahead we are very confident any what we were seeing in the second half in terms of customer acceptance for our products and services and in fact we have -- we've raised our guidance, we said that we’re going to beat what we talked about in April. So, we are more confident now then we were in April, especially when you normalize some of the head wins.

Okay, thank you.

Thank you Ben, next question please.

Mark Kelleher of Brigantine Advisors. You may ask your question.

Great, thanks for taking the question. I wanted to focus on the federal government vertical. There is some big initiatives there to move IT out into the cloud that seems like it should be right near [wheelhouse]. Can you tell us what you're seeing there? You said there were some weakness, what's the dynamic and visibility in the federal government.

Yeah, I think it's -- unfortunately markets both. If you talk to the powers to be in the IT and federal government, they are very sold on the cloud and I truly believe that they release the capability that the collective weighing if CBM were to bring to the party and that’s goodness, on the other side you also saw that they kind of try to put a bit of a freeze on IT spending so we saw a little bit of weakness in Q2. And as David said, governments around the world as they try to -- kind of reign in their spending a bit. So, we kind of have one good work from column A and one kind of negative trend from column B and I actually think they are both true. So, I do think that the government will make a massive play there is much more efficient way in and much more flexible way to do IT instead of cloud and we will benefit from that. And on the other said as the government cuts back in its day-to-day spending, you get hurt by that side.

Normal seasonality for the government in the Q3?

If I was guessing and it is a guess right now because we will see how Q3 unfolds, but obviously I probably believe Q3 will -- even though it's the government’s fiscal end and it's usually strong, I think it will be a little softer than normal. Although, you'll see some uptick obviously from Q2 but probably not as big as normal.

Okay, great thanks.

Thanks Mark, next question please.

Ittai Kidron from Oppenheimer, you may ask your question.

Thank you, and congrats on good numbers, can you give me some more color on the mid-tier, you mentioned 33% year-over-year growth, but if you take out back up and recovery Avamar and Data Domain, what was the growth of the other businesses, CLARiiON specifically and Celerra.

I want to break it out into front line, so let me tell you that if you added a team revenues from Data Domain a year ago, the growth actually increased a little bit from Q1. Remember we said that apples-to-apples growth in Q1 was 20% comparable apples-to-apples growth in Q2 is 21%. So, then of course in that as we mentioned we got different transitions going on within the products, it doesn’t make sense to breakout numbers for the individual products themselves.

Just to follow-up on that, in your discussions with your customers given that this expectation of a new platform, are you seeing any customers delaying or sitting on the sidelines and waiting for the new platform to come along, any purchasing decisions delayed because of this?

Yeah. Let me say two things. The number that David gave you that was little bit over 21% growth year-on-year is the way to look at it because you really as David said our sales force is good and has a lot of sway with customers and for sure we would have sold some more of our own devices like CLARiiON and disk library, which now we are forcing and it's setting our sales force to shift data to the main product. So, the best way to look at this is apples-to-apples is assuming we owned Data Domain a year ago, and we obviously do own them today. That difference in growth all in mid-tier right, which is meeting the product only is over 21%, so it's very solid growth and it's real growth. The second question you're asking is you want more color I think on what our plans are for mid-tier refresh. We started and worked incredibly successfully with -- when we announced, before we announced VPLEX. What we did is put out a big piece of the software to bake into our then DMX-4 line, so that you're not announcing all new software and all new hardware at the same time. We basically, like that model so much, and customers adopted it so much. We are doing the same thing now. So, what you just saw and David took you through FAST Cache Unisphere several other, and there is a pretty good laundry list of products, that is the new operating system that will be on the refreshed hardware products. We told you, David just told you that our new low-end, right, our new low-end will be introduced in Q1, all right? We also told you the fastest growing piece at mid-tier by far is and I mean by far is the low-end. So, we are very optimistic about this new low-end, and that the impact it's going to have.

All right then.

So, last piece you want to know is when we are going to introduce the high end of mid-tier? I got have some surprises in life. So, I'm not going to give you that one, but again software first. We told you when we are going to do the low-end, and our -- we -- I like our position in the mid-tier, I think it's going to continue to get stronger and stronger.

Thanks. Next question please?

Richard Gardner from Citi, you may ask your question.

Okay, thanks. I just, one quick one and then a follow-up. Dave, last quarter you were willing to give us actually a point number for the mid-range revenue. I was wondering if you would be willing to give that number again this quarter.

Richard, I told you it was up 12% so you can figure it out.

Okay, very good, and then I wanted to follow-up on an earlier question. Regarding operating margins, I think you can make a -- I know that you are as such not ready to take up your operating margin guidance from the 20 to 21 level for the current year, but it does seem like you can make a pretty compelling case for a continued rise in information storage margins. Thanks to increasing software mix, and hardware cost improvements over time, and I'm just wondering if philosophically that's the right way to think about things longer-term or whether you will chose to actively manage long-term operating margins to the 20 to 21% level and invest most of that back into top line growth.

I think I kind of give you a couple of key hints on that but let me make it clearer. First of all, we should be very pleased that we have operating margins to where we are today for a long period of time, we've been striving to get operating margin north of 20, we are there today, and I think that’s actual progress and obviously results is a result of what we've done in terms of mix and cost management and a whole bunch of good things across the business. Also, I have talked you about our triple play where we want to have a balance between gain market share, investing for the future and improving profitability. We said the over long-term we will be focused on being able to deliver all three of those. There will be some balance between anyone over a period of time but overtime, we plan to deliver all three. So, we do have an eye upon expanding operating margins overtime but also we talked about a significant investment in cloud software, repositioning so we can position ourselves to our public and private clouds. So, we'll have a balance between all three. We've committed also over the next few years, we'll give at least double-digit revenue and double-digit earnings growth. So, I think we've given a number of indicators to say that we are suppose to follow, but we were certainly not going backwards and we will overtime be able to expand our operating margins as well. It's really balanced and we’ll play that balance carefully and we'll communicate to you where we are any point in time in that balance.

Thanks.

Next question please.

Kaushik Roy of Wedbush, you may ask your question.

Thanks. Congratulations, good numbers. One clarification, in the prepared remarks you mentioned, the metrics product revenues grew 32% year-over-year and mid-tier products revenues grew 33% year-over-year but in the press release the total products are up only 27% year-over-year, can you help us understand that?

Just look at the press release and see what you are referring to.

The storage product, its [2077], which is up 27%.

Yes, you're looking at the schedule attached to the press release and looking at storage broad growth. While, still there are some other things in there including things like SAN Switches, some resold products product through our select line, there are other things in the total storage product, we gave you the kind of two major parts of it.

And then mid-tier product revenues, it's up 32%, is it apples-to-apples that means does it include a Data Domain as if you had Data Domain in Q2?

No. The apples to apples is slightly over 21%.

Apples-to-apples growth to mid-tier is 21% as mentioned little bit at 33% is the reported revenue growth. Now as we said, the real way to count or judge our performance in how we're doing in the mid-tier is the 21%. Which again, we think is good given our position in the high-end of the mid-tier but also I think our sequential improvement’s in the mid-tier is 12% "it's also a good indicator".

Again, just netted out in the mid-tier, we're kind of killing it in the higher end because you got to also add not only the 21 but part of that reason that will be maximum through 32 is we're consolidating mid-tier there too. So, if we put that again, you can say, you're doing really well in mid-tier in the higher ends. And we really don’t have a big play at in the lower ends which we now are growing faster. So, that's the common we gave to date but at which is really Q1.

Next question please.

Wamsi Mohan, Bank of America. You may ask your questions.

Hi, thanks a lot. Can you talk a little bit about your longer term enterprise data or housing strategy which can be a meaningful adjacent market? It seems like an obvious extension to your current strategy but I'm curious you choose to not to go after a more established bear like a tier data and enter the market for scale as opposed to what could take some time with Greenplum to capture a meaningful part of the market.

We will do more of this as it goes, but let me give you a short piece of our thinking. Traditionally, the data warehouse market looks at last months, last weeks kind of data and more and more customers want to look at real time data that’s in their coming out of their systems right now and obviously when you get to cloud kind of scale what do you want do you want to take your card to put data into the cloud, you don’t want to take data out of the cloud specialize it to do a analytics on right? So, basically the Greenplum technology works extremely well better than anything else we saw in the market in that kind of environment. So, we are here talking about real time. When you are talking about big data, when you are talking about cloud scale data we think the attributes of Greenplum and the way it also works with in the virtualized environment is phenomenal. So, we went after what we thought was the best technology and we got plenty of go to market prowess surrounded and as you said it's a close affinity to what we do. So, we are quite pleased, this plays out for our future strategy.

Thanks Wamsi. Next question please.

Louis Miscioscia of Collins Stewart, you may ask your question.

Yes. Thank, can you go back to the macro for a second. I guess when you look at this two different ways. One, last night on VMware's call, they did express a lot of concern about Europe and then second Joe, when you are talking to C level executives what are they telling you about their desire to continue to spend on IT given the concern about the macro-economy.

I mean as I said in my remarks, the biggest thing that the executives are interested in is driving their productivity, okay which you could say on the other side hurts a little bit in terms of the unemployment that’s out there but everybody right now because the company say look I got to get, it's a uncertain world, I got to get differentiation out there and I want to drive my productivity and they know that probably the only way to do that is to invest in technology and I think that’s one of the things that’s benefiting IT as a whole right now and as I said on the other side the big back of the chunk that I mentioned is at the Board level the focus on risk management and compliance is phenomenal. So, those as a macro side those are the two things that we see out there and you can almost you see that globally. Certainly you will see it in United States and Europe.

And then as we just think of the comments last night where VMware did seem much more cautious on Europe than maybe your comments, or maybe just clarify your views on Europe.

We still think Europe will have moderate growth as I said with the exception of Southern Europe where I did say we are seeing definite downturn in their spending.

Thank you, next question please.

Katy Huberty of Morgan Stanley, you may ask your question.

Thanks. Good morning and congrats on the quarter. Just a follow-up on the last question. IBM had noted some deal push-outs, large deal push-outs in the services business. Did you see any deal slippage at the end of your quarter and just qualitatively how would you characterize backlog or the pipeline of deals going into 3Q?

We always see some deal push-out, was it material or abnormal in our case, the answer is no and right now so far Q3 the customers, I haven’t seen a huge change in what order, it be 20 days or whatever it is into I don’t even know what day it is but into Q3 I haven’t seen a market change in customer attitude.

Okay thanks.

All right, thanks. We got time for one more question.

Toni Sacconaghi of Sanford Bernstein, you may ask your question.

Yes, thank you. Joe, you talked about your longer term target to grow revenue double digits and EPS double digit, how are you thinking about acquisition in that target set and maybe, I see the chart over the last seven or eight years, 12% revenues growth. Have you re-run that for what your organic growth rate is, and if you think about your assumptions going forward, how are you thinking about acquisition. Historically, you have maybe done a larger acquisition, $1 billion plus, every couple of years. Is that the kind of framework we should we thinking about sort of a larger acquisition every couple of years, and then smaller ones like Greenplum, potentially more frequently?

The answer is yes. But let me just kind of qualify that. I would argue that, I have always said I have favor a string of pearls as opposed a massive acquisition. And I think, from a revenue standpoint, the biggest company we have bought at $400 million on revenue were something there about. So, when you talk on a base of $6 billion and $0.5 billion plus, certainly, that’s not, I don’t call that big. Okay. But, obviously in dollar value, I would say, you are correct. That would be a trend that you should I think we are going to continue. It’s worked really well, and that’s what I like. I guess, that’s the last question. So, in closing, we believe you are executing well today. Our strategy for the private and public cloud is right on. We have a product roadmap that is well aimed and downright exciting. We have the go-to market capability and the alliance partners necessarily to bring our innovative products to market. And most importantly, we have 45,000 plus great people, who believe in our vision, in our future. I thank you for joining us, and we will be talking to you and I hope to see you all soon. Thank you.

This concludes today’s conference call. Thank you for your participation.