Welcome, and thank you for standing by. (Operator Instructions) I would now like to turn the meeting over to Mr. Tony Takazawa, Vice President of Global Investor Relations. Sir, you may begin.

Thank you, Kerri. Good morning. Welcome to EMC's call to discuss our financial results for the third quarter of 2006. On today’s call, David Goulden, EMC’s EVP and CFO will kick things off and walk you through our results for the quarter. We will then be joined by Joe Tucci, EMC's Chairman, President, and CEO. Joe will spend some time discussing how EMC’s strategy is coming together, and his observations on the market environment going forward. After the prepared remarks, we will then open up the line to take your questions. We will be joined at that time by Bill Teuber, EMC’s Vice Chairman; and Frank Hough, EMC EVP of Global Marketing and Customer Quality. We will be making references to our slides today, so we encourage you to view them on EMC's website at EMC.com. An archive of the audio and slide presentation will also be available following the call. As always, 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. In addition, all of the numbers we discuss today will be presented on a GAAP basis, unless otherwise indicated. We are focusing on the GAAP numbers in an effort to simplify the discussion for you. For those of you interested in analyzing the non-GAAP numbers, we continue to provide a schedule in the press release that will help you adjust the GAAP results for stock options, restricted stock, and amortization expenses. With that, it is now my pleasure to introduce David Goulden.

Thanks, Tony. Good morning and thank you for joining us today. As Tony mentioned, I am going to walk you through our Q3 results and Q4 outlook. Looking across our business, we are pleased with how we performed in Q3. Let me dive straight into the numbers. Q3 revenues were a record $2.815 billion, up 19% from last year. This includes approximately $38 million from our new security division. Without security, Q3 revenues were $2.778 billion, up 17% over Q3 of last year and also a record quarter. Q3 GAAP EPS were $0.13. This includes slightly less than a $0.01 from our new security division, principally due to a $23 million IT R&D charge. Without security, EPS for the quarter was also $0.13. EPS was up 30% over last year on a comparable basis. This growth compares GAAP EPS of $0.13 for Q3 this year against $0.10 last year after adjusting Q3 2005 EPS of $0.17 by $0.03 had we expensed stock options; and by $0.04 had we eliminated a one-time tax benefit. Revenue growth of 17% for the quarter was clearly very strong, but we did benefit from the unusually high backlog levels we had at the end of Q2. As we finished Q3, we were able to take advantage of having completed our major product transitions, and of higher inventory levels, and of a Saturday quarter end to drive Q3 backlog to more seasonal levels. If we look at the first nine months of 2006 for a more normalized view of growth, on a YTD basis total revenues are up 14% over last year, excluding security, supporting our view that EMC’s growth profile is strong. Looking at our corporate revenue mix in Q3, our systems revenues were up 19%, software revenues were up 25%, and services revenue were…

Thanks, Joe. Before we open up the lines for your questions, as usual, we ask you to try to limit yourself to one question, including clarifications. This will enable us to take as many questions as possible. Thank you all for your cooperation with this matter. Please, Carrie, can we open up the lines for questions.

(Operator Instructions) Aaron Rakers of A.G. Edwards, you may ask your question. Aaron Rakers - A.G. Edwards & Sons, Inc.: Thanks, guys. Just a question, I guess, in regard to clarification on the headcount reductions. I know you talked about the charges that you expect to take, but can you give any color in terms of what type of synergies you expect to derive as we look into 2007? Also, last quarter you provided comments in regard to a focus on sales force integration and the next level of G&A integration for the company. Maybe you could just give a quick update on that and where that stands over the next quarter or two.

The first thing I want to point out is that what I care about mostly at this juncture is our employees. A lot of our employees are hearing this now for the first time, so we -- and as David said, we still have some more planning to do so I owe it to our employees to make sure they know why and what we are doing everything first, so I will not be as specific as you would probably like. But suffice it to say, I talked about when you buy, when you do a new acquisition, they have finance departments, they have order and cash process, they have IT, et cetera, et cetera, et cetera -- HR -- there is just a lot of opportunities, some of which will go into the share centers, which I talked about, some of which we will do some consolidation. You end up with a lot of vice presidents, a lot of senior vice presidents, and there is a lot of opportunity here for us, without affecting -- matter of fact, we want to increase the number of people that are calling on customers, so without affecting that and make sure we have appropriate numbers on research and development. There is a lot of other areas that we are really going to focus. The most sacrosanct will be customers, you know, people who -- the customer-facing individuals within the combined EMC and our individuals that really produce this great technology. Everything up, we want to be the most efficient company we absolutely can. Obviously want to be efficient in our go-to-market and our development also, but that is where mostly it will be, in those areas outside of those customer-facing areas and development.

Thanks, Aaron. Next question, please.

Harry Blount with Lehman Brothers, you may ask your question.

Joe, you obviously have highlighted on one of the earlier slides the investments you guys have made to position the company for the vision. It looks like, if I go back to the analyst day, you put a lot of the building blocks in place for these billion dollar businesses you are targeting. At what point are we going to really see the acquisition pipeline slow down and really put more of an emphasis back on just the straight organic growth side of the equation? Thanks.

I think you can see that now. We have the vast majority of the pieces that we -- actually, we have all the major categories we want. Will we do things like network intelligence continue going forward? Absolutely. Where we felt okay we have a lot of things. We do not have any way to really make sure that we are assuring compliance and keeping track and rationalizing all these log events that happen all over the place, so we will do things like that, but I think we have a lot of the pieces, Harry, and I think we have great synergies. Even the early signs of the EMC sales force and the RSA sales force working together to create a richer pipeline just in the month of September became incredibly evident. There is a lot of excitement. We think we have pretty much what we need and we are going to concentrate on organic growth and efficiency.

Thanks, Harry. Next question, please.

Benjamin Reitzes with UBS, you may ask your question.

Could you talk about Symmetrix versus CLARiiON, just into year-end and next year? What kind of growth is Symmetrix? Is it a 10% growth business like it was over the nine months, I believe you said? How should we be looking at that and where are we in the cycle? Maybe tell us what you think CLARiiON is as a business as well.

Well you just saw us come out with the lower end Symmetrix and we are not going to ever be done with the Symmetrix family. We are going to continue to push it up and down a little bit. You do not want to leave any seams. Of course, the CX80 is way up there in what used to be high-end storage not too long ago in terms of performance and capabilities and reliability. Those two product lines overlap and I think that is very healthy. Then, of course, on top of those product lines, we will make sure we have all the proper connectivities -- San, Nas, et cetera. So it is really hard to say but I believe that for a long period to come, the CX should continue to grow at or even a little bit, hopefully a little bit faster than where we have been. Symmetrix, three quarters in a row now it is basically average. If you just do the adjustment for what I said we had and missed in Q2, which is now beyond a shadow of a doubt that we are telling you the truth, we really had three quarters of 10%, so it is doing quite well. Again, we just extended that down market and we will do that again, so I thin there is both good things ahead for both lines of products.

Thanks, Ben. Next question, please.

Laura Conigliaro with Goldman Sachs, you may ask your question.

Great. A question about Q4 into Q1. What specific metrics do you and actually do we need to see exiting Q4 in order to feel more secure about either no worse than normal seasonality in Q1, or maybe even better than normal seasonality in the March quarter?

I think it is important that we get our efficiencies in line. In the next call we will give you guidance for what we think we are going to do in Q1. We just gave you guidance for Q4. We are obviously going to work hard to try to not only not disappoint but actually, hopefully, continue to post positive results; more positive than even we said. So we are going to work very hard to do that, but there is no commitment on that, but obviously that’s what everyone is geared at here. On the storage side all-in, we continue to grow at 10% like we said. I believe the answer is yes. We grow on our other assets significantly faster; and they are realizing the EMC effect. I think those are the things you have to look at.

Your next question comes from Antonio Antezano– Sanford Bernstein. Antonio Antezano – Sanford Bernstein: Thank you. I just wanted to revisit the consolidation restructuring efforts. You talked about 1,250 people; you had noted that many of them would be managers. Typically there is about $100,000 a year savings associated with workforce reduction. Given that there is associated IT and real estate here, that number could be conservative. That works out to about a $0.04 to $0.05 annual run rate savings. One question around that: Is that a realistic go-forward, normalized result of your consolidation efforts? How should we expect them? Should we expect most of the people to be out by the middle of 2007?

First of all, as Joe said, we don’t have a precise number right now because we haven’t finalized our planning. We will factor those savings into the guidance we give you at the beginning of 2007 for 2007. So let us finish our plans and come back to you on that one.

Your next question comes from Bill Shope – JP Morgan. Bill Shope – JP Morgan: Thanks. Can you please give us some color on bookings growth this quarter, as well as the margins on those bookings, as you did last quarter?

On bookings, we are not talking about specific bookings levels. We typically don’t do that. I think the important things to notice for the business are that total revenues were up 14% year-to-date and total storage revenues were up 10%. We gave you bookings information last quarter to show you the health of the business, and I think you see the health of the business is confirmed by today’s results.

Your next question comes from Dan Renouard – Robert Baird. Dan Renouard – Robert Baird: Thanks. Just high level, when you look at the RSA, Joe, you talked a little bit about some of the field synergies and some of the sales people working together. Can you talk on the technology side, when or if we should be expecting to see some of that encryption technology make its way into your core storage products? Is there going to be some sort of a timeline, or how are you going to roll that out? Thanks.

The answer is yes, we do have firm plans. We have not announced any of those firm plans yet, but yes I can guarantee you they will make our way – as I said, we will have these products, as they do today, work in an appliance. We will have these products, as some of them do today, work actually in network switches. We will have these products working on our storage arrays and other combinations. So yes, we are going to do that. We have not announced any timeframe, as you know, we try not to announce products before their time here. We have a good heritage of when we announce a product, it is commercially ready and available and ready for primetime. So I think we are going to stick with that policy. That is something we are definitely focused on.

Your next question comes from Tom Curlin – RBC Capital Markets. Tom Curlin – RBC Capital Markets: Good morning. From a free cash flow perspective, a couple of items. CapEx has been growing significantly year-over-year. Can you comment on what is driving that and what you see on a go-forward basis? And then the cash tax rate also continues to increase. It is up to the high 30s now. Where does that end? What should we use for planning purposes on a cash basis for tax rate?

Well we gave you some guidance on Q4, let me talk a little bit about CapEx. The big drivers there, the two biggest drivers, really, would be our IT investment in synergy projects and also some of our real estate developments out on the West Coast, those are driving CapEx right now. On the tax rate, the reason why you saw little uptick in tax rate in Q3, the IT R&D charge had a factor there, there is no tax benefit on that so that is driving our rates up a little bit in Q3, and we’ll give you more guidance on 2007 when we get into next quarter’s earnings.

As you can expect – and I am not giving any numbers to this, but our full expectation and planning is as we go into ’07, we’ll actually bring down our CapEx rate. We spent a lot, we are building a brand new campus on the West Coast for VMware, and the big, big investments have been on the system which we nicknamed Synergy, which is actually a set of systems, so that we could really consolidate everything. Those are pretty much complete now, so we will be definitely easing off CapEx going into next year. And on next quarter guidance, as we always do, we will give you that number. But it will be down, I can guarantee you that.

Your next question comes from Andrew Neff – Bear Stearns.

Sure. Two things, if I could. Joe, if you could just give us a sense of your, when you talk to executives, what their perspective is in terms of spending, what their optimism is, as they look out, for not just the fourth quarter but just in general, and I guess just a question, a financial question. I just want to clarify. Previously, you had talked about 20% operating margin as a target. That changed, obviously at some point, but is there a new operating margin target that you have?

Let me take the second one first. Obviously what we talked about in terms of operating margin targets were on a cash EBIT basis. Those are the numbers that Bill talked about. If you actually look at Q3, our cash EBIT operating margin was 17% compared to the 12.9% number I talked about earlier on a GAAP, we’re excluding one-time basis items. So the 20% number we spoke about some time ago was a cash EBIT margin goal for exiting Q4 2006. Obviously when we look at our Q3 guidance, we expect the cash EBIT margins to be higher than they were in Q3. In terms of a longer-term target, we will give you more information on that when we talk about our ’07 results.

The answer to your question is I think relating to our business, I think the biggies that have been pretty consistent are things around compliance, around consolidation, and customers have really bought off on this tiering of storage. Those things are really big, and of course, that tiering does apply to archiving and all those aspects of archiving I talked about. I think the two I would highlight additionally is there is a lot more focus now on new apps to help business process than I have seen in a while, which I think bodes well. Also, one which I did not see coming into the year, but there is an incredible focus now on what I call the environmentals. I mentioned it about VMware, also mentioned it about our tiered storage. A tremendous focus on environmentals. You know, data center space is getting incredibly precious. Watching the power consumptions and how you dissipate heat are all just incredibly important to customers and have increased far more than what I would have expected them coming into the year, so maybe the apps and the environmentals are the two new ones that I see coming on, and then the other things are pretty consistent that we have been capitalizing on all year, and I think are going to continue. I know are going to continue.

Do you think spending intentions are increasing, decreasing, staying the same? How would you talk about that?

I think they are still in line with what we have talked about. I mean, I think you are still seeing a healthy year. I think there is a great deal of confidence out there in the business community and they are going to spend to create business advantage and they are going spend to, like we are, like we did with Synergy, they are going to spend to help them get more cost efficient. I think it is a healthy environment out there, Andy. I really do.

Thanks, Andy. Next question, please.

Chris Whitmore with Deutsche Bank, you may ask your question.

Thanks. I wanted to understand product gross margins a little bit better. Despite the acceleration in top-line growth, margins declined -- product margins declined both on a sequential and year-on-year basis. Can you talk about either mix drivers or pricing actions taken during the quarter that may have affected margins? Thanks.

Certainly. In my remarks, I commented that we had a 50 basis point negative impact of a higher percentage of systems or product revenue during the quarter, so that was a factor. In fact, if you exclude security, that mix impact headwind was actually 80 basis points. From a pricing point of view, we saw a very normal pricing environment in the quarter in terms of normal annual declines of both Sym and CLARiiON, so those are the major factors impacting margin.

Thanks, Chris. Next question, please.

William Fearnley with FTN Midwest, you may ask your question.

Yes, good morning. Could you guys comment on your efforts to establish more linearity of orders during the quarter? How did it work out for you this quarter versus your expectations after your commentary in the second quarter earnings call? Thanks.

It is interesting. I mean, there was a slight improvement in linearity, but the quarter felt better. I do not know why that -- how those two things jive. All quarter there seemed to be a better rhythm, but if you looked at the actual calendarization, while slightly better, we still do more than 60% of our revenue in the last month, and a good piece of that falls to the last two weeks, so we are putting in incentives to book early. Sales reps can make more if they do not book on those last two weeks, or three weeks. There is a lot of plans that we continue to implement and we will continue to fight with that formula. So we saw a slight improvement, and I think our -- but our new system is being in place and obviously we took on a little extra inventory, which we do not want to do as a systemic answer, just helped the quarter feel better and the commits from the field are stronger this quarter all through, so it was good.

Thanks, Bill. We have time for one more question, and then Joe will have concluding comments.

Brian Freed with Morgan Keegan, you may ask your question. Brian Freed - Morgan Keegan & Company, Inc.: Thanks, guys. A few months back you guys announced a relationship with Intel on the low end. Can you update us on the progress or the status of that relationship?

We think it will be important as we go attack that low end SNB market where you have more kind of a serve storage affinity. The white box market is a robust marketplace. It is going very well with Intel. We will talk more about it next quarter. In closing, I want to thank you as always for joining us. As I said, I think overall the quarter was quite healthy. We obviously had less than our normal performance last quarter. I think the reasons we did give you, and we do not like to use excuses, but we gave you the real reasons of what did happen. We have corrected them this quarter. We think we are on track for a good year. I absolutely believe, as we create this one EMC plus VMware, we will be well-positioned, assuming we -- not assuming, we will get also the cost efficiencies we talked about. I believe we will be very well-positioned for next year and the future, and I am quite excited looking forward. So again, thank you for being with us and we will keep in touch.