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Storage Bigs Brash on Budgets

In the opening days of 2004, its starting to look as if the biggest trend in storage this year will have nothing to do with technology and everything to do with money. Spending is in vogue, if storage executives are right in their forecasts.

With every positive financial result posted this week came a rosy outlook for IT spending, specifically on storage. So while companies bask in what looks like a budget flush to end 2003, they also look ahead to better things in the coming year.

“We are seeing the beginnings of what we hope is a very strong economic recovery,” Storage Technology Corp. (StorageTek) (NYSE: STK) CEO Pat Martin told analysts during the company's earnings presentation last night. “We expect that customers will continue to move forward many of their IT projects, and we expect storage will continue to be a priority within that IT spending.”

Martin was so optimistic that he raised his company’s 2004 income guidance from between $160 million and $170 million to between $165 million and $175 million. StorageTek posted $655.1 million in revenue, $71.3 million in net income, and an EPS of $0.64 per diluted share in its report (see StorageTek Announces Q4).

EMC Corp. (NYSE: EMC) CEO Joe Tucci also gushed about better things to come after completing a strong quarter this week (see EMC: Everything's 'Better').

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