EMC 2004 Annual Report Download - page 21

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Table of Contents
Other businesses revenues consist of revenues from AViiON maintenance services. These revenues are expected to continue to decline in future years as
we have discontinued selling AViiON servers.
Revenues by geography were as follows:
Percentage Change
2004 2003 2002 2004 vs 2003 2003 vs 2002
North America, excluding Mexico $ 4,755.8 $ 3,740.7 $ 3,225.4 27% 16%
Europe, Middle East and Africa 2,355.9 1,645.0 1,327.8 43 24
Asia Pacific 926.0 709.4 769.8 31 (8)
Latin America and Mexico 191.8 141.7 115.4 35 23
Revenue increased in 2004 and 2003 in these markets due to greater demand for our products and services. Also contributing to the increases were
revenues generated from the acquisitions of Documentum, LEGATO and VMware, new and enhanced distribution channels, broadened product offerings and
favorable foreign currency exchange rates. The decrease in revenue in 2003 compared to 2002 in the Asia Pacific markets was due to several large non-
recurring customer orders received in 2002. Changes in exchange rates favorably impacted revenue growth by 3.7% in each of 2004 and 2003. The impact of
the change in rates in 2004 and 2003 was most significant in the European market, primarily Germany, the United Kingdom, Italy and France.
At the time of sale, we provide for the potential returns of products as a reduction of revenue. We estimate the amount of returns based upon our historical
experience, specific identification of probable returns and current market and economic conditions. In 2004 and 2003, we decreased our provision for
potential sales returns by $5.7 and $19.4, respectively. The reductions in the provisions were attributable to improved economic conditions and a favorable
experience in the level of actual returns compared to our expectations.
We expect our revenues for 2005 to grow at approximately twice the rate of the storage and information management IT markets, which we estimate will
grow around 7% to 8%. Additionally, we expect that our revenues will be positively impacted by the acquisition of Systems Management Arts Incorporated
("Smarts"), which was completed in February 2005. However, our revenues could be negatively impacted by a variety of factors, including the economy,
demand for IT infrastructure, product availability, competitive factors and changes in exchange rates.
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