Good morning, and welcome to the EMC Q1 2014 Earnings Conference Call. All parties are in a listen-only mode until the question-and-answer portion of the call. As a reminder, this conference is being recorded. If you have any objections, you may disconnect at this time. I’d like to introduce your host, Mr. Tony Takazawa, Vice President, Global Investor Relations of EMC.

Thank you. Good morning. Welcome to EMC’s call to discuss our financial results for the first quarter of 2014. Today we are joined by EMC’s Chairman and CEO, Joe Tucci and David Goulden, EMC Information Infrastructure CEO and EMC’s CFO. Joe will begin our discussion with his views of the trends happening in IT, EMC’s vision and strategy and how the EMC Federation is managing the transition to the Third Platform. David will then make a few comments on our results and provide a bit more detail on how our various businesses and products are positioning EMC for success in the Third Platform. He will also discuss our outlook for the year 2014. After the prepared remarks, we will then open up the lines to take your questions. I want you all to be aware that we are providing you with new schedules for pivotal. We have reclassified non-core revenues out of pivotal and into the EMC Information Infrastructure business. These non-core revenues include the Data Computing Appliance and various pivotal implementation services that make more sense within EMC II. Importantly, this change will give you a better view of the strategic growth within pivotal. These new schedules will include five quarters of reclassified data so that you can have good view of trends here. We have included this information in our press release scheduled and in the Appendix of today’s slide presentation. We’re providing you with our projected financial model for 2014. This model lays out all of the key assumptions and discrete financial expectations that are the foundation of our outlook this year. We hope that you find this model helpful in understanding our assumptions in context and ensuring that these expectations are correctly incorporated into your models. This model is available as background in today’s slides available for download in the Investor Relations section of emc.com. Please note 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 in today’s press release, supplemental schedules, and the slides that accompany our presentation. In addition all financial comparisons will be on a year-over-year basis unless otherwise indicated. 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. With that it's now my pleasure to introduce Joe Tucci. Joe?

Thank you Tony. I would also like to welcome everyone to today’s call. As always, thank you for your interest in EMC. : Additionally and very importantly, as we navigate through this transition, we and the rest of the industry are facing a global market which is exhibiting an air of caution in spending resulting from an array of economic and political uncertainties around the world. Collectively, these two factors are creating an environment that is not for the same apart. Against this backdrop, we said EMC’s consolidated revenues and non-GAAP EPS would both grow by 6% this year, including the impact of AirWatch. As part of this 2014 guidance, we said in our Q4 call that for Q1 we expected out top line revenue to be $5.4 billion and produce a non-GAAP EPS of $0.34. Importantly, we also said on our call that we would strive to build storage backlog, in other words our plan call for growing storage bookings considerably faster than storage revenue in Q1. As you have undoubtedly noticed by now, we exceeded our Q1 revenue forecast by over $80 million and beat our EPS plan by $0.01. And as David will cover shortly, while our storage revenue was down 3%, our storage product bookings that exhibit positive growth year-over-year and thus we did grow backlog. Given that we slightly deal our forecasts for Q1, given that our federation modeling strategies are resonating very well with customers. And given that our Q2 second half product cycles will be quite exciting and robust. I would like to take this opportunity to reaffirm our 2014 guidance of $24.6 billion in revenue, $1.90 per share of non-GAAP EPS and $5.8 billion of free cash flow. Again, this updated guidance now includes the impact of VMware’s AirWatch acquisition which closed…

Thanks Joe. Good morning everyone and thanks for joining us today. For the first quarter of 2014, EMC reported revenue of $5.5 billion a non-GAAP EPS of $0.35 both slightly ahead of where we told, we’d be in Q1 including AirWatch. Compared with Q1 year ago, Pivotal grew 41%, VMware grew 16% and EMC Information Infrastructure declined 3%. The differences in growth rates among and within our businesses reflects some of the transitions in the industry as well as changes we made to our own business in the first quarter, I’ll cover these changes shortly. In our major geographies, revenue growth was flat in North America, up 8% in EMEA, down 2% in APJ and down 11% in Latin America. Our BRIC plus 13 markets were down 1%. As we indicated in January, in Q1 we modified our fulfillment practices in our storage business, to mitigate extra costs in trying to fill high volume of orders at quarter end. The decision to fill those orders more rationally did result in a smoother close. Although we have more work to do on inventory. As expected this change in business practices resulted in Q1 revenue being lower than in seasonally normal. While the level of unfilled orders increased versus Q1 a year-ago, they did not grow as much as expected, because our Q1 revenues were higher than anticipated. These unfilled orders will continue to build in Q2. The good news here is the storage forward bookings grew inline with our growth expectations or storage for the year. Looking at line items driving our earnings growth, consolidated gross margins in Q1 was 62.8% down slightly compared with Q1 of last year. Looking at II, margins were down year-on-year, primarily due to volume. Excluding fixed cost, storage product margins would have been up from…

Thanks, David. Before we open up the lines for your questions, as usual, we ask you to try and limit yourself to one question, including clarification. This will enable us to take as many questions as possible. We thank you all for your cooperation in this matter. Rebecca, can you open up the lines for questions please.

Thank you. We’ll begin the question-and-answer session. (Operator Instructions) Our first question is Ittai Kidron from Oppenheimer. You may ask your question. Ittai Kidron – Oppenheimer & Co., Inc.: Thanks. First, just a clarification and then a question. Just David, on the annual revision, is that just the inclusion of AirWatch or there are other things in that are making for the $0.05 correction? And then on the high-end where you’ve seen, according to my math, about a 20% plus type of contraction on a year-over-year basis. How recoverable is this? How soon is a product cycle coming here to address this? What is that that you think is within your control versus not within your control and your ability to turn this business around?

All right, great. Thank you. So let me handle those in turn. So, yes, just to clarify, our guidance for the year has not changed. When we guided last in January, we did not include AirWatch into the guidance and the changes to the guidance are only for the addition of AirWatch. There’s no other change on guidance for the year. So I know a number of people had a little bit of confusion around that. AirWatch basically had about a $75 million impact on the top line and a $0.05 impact on the non-GAAP EPS and that accounts entirely for our change in guidance from January. Now let me move on to the High-end, and yes, as we showed you on the chart it’s down little over 20% year-on-year this quarter. So let me explain a few things going on. So the first thing that’s going on is there’s a number of math factors and what I mean by math factors is, a) we had a tough compare against Q1 last year where it grew double-digits. Importantly, the changes in business practice that we implement at quarter end and the building of backlog impacted our Symmetrix line that made the year-on-year growth look a lot worse than the actual underlying bookings growth. So biggest factor math. Second factor that you talked to, obviously as you know over the years, the High-end is very depended upon product cycle. The moment we have a maturing product cycle, we do have a refreshed plan during the year, not I’ll tell you exactly when. We don’t want to impact our own business more we have to, but that is certainly a factor. And the third factor, which is the industry backdrop and I mentioned it in my prepared comments is basically people are…

Thanks Ittai. Next question please.

Next question comes from Andrew Nowinski with Piper Jaffray. Your line is open. Andrew J. Nowinski – Piper Jaffray & Co.: Hi, good morning. Congrats on the nice quarter. I was just hoping a little more color on the public cloud market. I know you said you generated in excess of $2 billion in revenue from off-premise deployments, but I’m curious if that’s extending your sales cycles, those customers evaluate the economics of the public cloud. And then, could you also provide your views on how Cisco’s recent public cloud announcement impact EMC?

Okay, so Andrew let me take the first one. And Joe, may want to comment on the second one. So the existence of the public cloud is one of those secular factor, I just mentioned in my last answer, disclosing customers to look where they should be deploying their workloads and really it is all about workloads. So there is no one size fits also certain workloads are better in a hybrid cloud or a private cloud and some workloads maybe whilst to the public cloud. So to the extent that the cloud is out there and it is clearly a growing phenomenon in the marketplace that is one of the secular factors that just impacting the people and creating this general poles in the market places as people look at second and third platform technologies. What we wanted to do in terms of give you a couple of data points is first of all, demonstrate to that we have a fair amount of our business actually going into a cloud partner program, our search partner program. But then it is much more than that when you look at the totality what we sell to public clouds. So EMC storage technology is very prevalent in public clouds. And you see a significant chunk of our business in 2013 came from that’s related market. Joe?

Maybe a little lazy, but if you look what’s happening here and you go back to what was called platform one Mainframe and Minis you kind of got all in one. You got your server, your compute, your network all from one vendor. Yes, you provide some plug compatible devices, but the management, the control locking from one vendor. In platform 2, we went for silos. So they became a storage industry and networking industry, a server industry. On top of that it was another initiatives build the management industry to help to move it all together, and scale up technologies rule today. If you look a Platform 3, which is happening it’s kind of taken a little bit of both of those but it’s basically recombining at least at the controller layer and software for the control storage network and compute the management software from many made different vendors is being replaced with a layer of automation, and scale out technologies rule. So what you see is companies like Cisco, companies like us, obviously are trying to provide the software-defined layer. And of course, they want to use their own technologies and their clouds. But another factor I think to succeed in the future is co-opetition, you are going to have to understand that you are going to compete in more areas but there is very, there is a lot of power in cooperating. And that’s what we’ve done with BCs, so the partnership with Cisco is still strong. My guess is as we both go for software offer, software-defined scale out, reuniting in a way of storage computing network. You know obviously to be areas of rough, but again the companies they are going to do best, they are going to understand how to do co-opetition. So that’s kind of where we are and you can see that BC, John is very committed to BC, I’m very committed to BC. The company is very committed – both companies very committed to BC and it’s doing extremely well. Andrew J. Nowinski – Piper Jaffray & Co.: Thank guys.

Thank you.

Next question please.

Our next question comes from Katy Huberty with Morgan Stanley. Your line is open. Kathryn Huberty – Morgan Stanley & Co. LLC: Hi, thanks. Last night, VMware talked about $100 million contribution from AirWatch, this year and then you obviously beat the first quarter by $75 million that’s the AirWatch contributions you’ve got, $175 million in upside over the last three months, but you are only creates any the full year by little less than half of that. So just can you talk about has your view around the next three quarters changed over the past three months, or should we just view that as conservatism as you continue to rebuild the backlog, to the Air, thanks?

Katy, thank you. Let me address that so, VMware, did talked about $100 million of contribution from AirWatch but basically if you look at what the VMware’s mid-point of guidance is in April compared to mid-point of the guidance in January, it is up by $75 million. So basically, what happened for AirWatch is it didn’t change the expectation of AirWatch contribution to our license revenues that did go a little bit more expect the contribution services revenues but the within (indiscernible) million and we reflected that in all numbers, so that’s why $75 million. In terms of the Q1 beat, you are right, we’re actually beat our Q1 outlook by a little over $80 million about $70 million of that was in the storage business and if you remember back to the early part of my prepared comments, we said the reason for that was that basically we didn’t build our backlog quite as much as we expected to and you can think of it intellectually in terms of that’s extra backlog is why we’ve beaten the – we now have to build our backlog up in the Q2. So those two things both have normalized out which is why we are increasing our full-year guidance from what we actually said initially in January by the extra AirWatch and to beat this quarter and storage will be made – will be basically used to build up additional backlog in Q2. Kathryn Huberty – Morgan Stanley & Co. LLC: Thank you.

Thank you. Next question please.

Our next question comes from Abhey Lamba with Mizuho Securities. Your line is open. Abhey R. Lamba – Mizuho Securities USA, Inc.: Yes, thanks. Your EMEA sales were an outperformer as a region now it was something in the market that was mainly your execution, can you talk about the drivers for outperformance in Europe?

Yes, thank you. We’re actually very pleased with obviously with what happened in Europe particularly grading on the period. We actually had the strength across almost every single market in Europe during the quarter only one country, and I am not going into – calling out single countries by name, but only one country however whole portfolio didn’t showed a decent growth. So everybody was up around that 8% average. We do think it’s good execution. So we’re just very pleased with how things went to Europe last quarter.

Thanks Abhey. Next question please.

Our next question comes from Ben Reitzes with Barclays Ben A. Reitzes – Barclays Capital, Inc.: Yes, thanks a lot. Could you talk about in a little more detail how you get to the 3% growth in storage for the year, you talked about high-end but other products and other things that you are excited about perhaps into the second half because those growth rates have to be pretty robust and then if you don’t mind there has been talk in the press around the Project Mystic where perhaps there is an integrated appliance with VMWare around selling VSAN coming as well in the second half. Is there any commentary around that and could that be material? Thanks.

: So we’re very excited about what we’re going to have adding into the portfolio over the course of the year and I don’t want to get into specifics around individual projects and code names and things like Mystics is all sorts of speculation in all sorts of industries about what is going to be announced by rather when should we get to the announcements and talk about of the curve. Ben A. Reitzes – Barclays Capital, Inc.: Okay, thanks.

Next question please.

Our next question comes from Toni Sacconaghi with Sanford Bernstein Toni M. Sacconaghi – Sanford C. Bernstein & Co. LLC: Yes, thank you. You’ve commented that your bookings growth was lower than you had anticipated in your original outlook, and it appears as though perhaps your backlog build was maybe 50% to 75% of what you had expected it to be. Can you confirm both those statements and I guess I have the opposite question which is the bookings growth was weaker than you thought for Q1? Why are you confident in maintaining your guidance?

Toni, we did not say that bookings growth was lower than we expected. We said the bookings growth was inline with our expectations of revenue growth for the full year, so just to clarify that point. On the second point, you’re right that our backlog builds was less than expected by roughly the amount that we have achieved revenue during the quarter. Now in the interest of total and full transparency, I would tell you that internally we may be strived to do a little bit higher than the bookings growth rate at the 3%-ish level we talked about for the year, but that was on internal expectation as opposed to anything that we would have baked into our guidance. So relative to what we have guided our bookings growth rate is absolutely inline with what we expect revenues to come out for the full year. Thank you. Toni M. Sacconaghi – Sanford C. Bernstein & Co. LLC: Thank you.

Thank you, Toni. Next question please.

Our next question comes from Aaron Rakers with Stifel. Your line is open. Aaron C. Rakers – Stifel, Nicolaus & Co., Inc.: Yes, thanks for taking the question. I want to ask you about free cash flow generation. I know that you guys have reiterated the full year consolidated free cash flow. But when I am look at the Q1 results and go back overtime, I think on average you have done between 26% to 28% of full year free cash flow in Q1. This number today would imply about 16%. So in order to hit that 5.8 number, is there any underlying assumptions or anomalies that you are making to that free cash flow for the next couple of quarters?

Aaron, yes thank you. Let me answer that as well. So a few things happened to free cash flow in Q1 by the way all of which we expect as we put our plan together for the years. So first of all, obviously free cash flow was impacted by lower net income, which was obviously driven by the changes in our business process and the lower revenue growth that was the first factor. The second factor is we had significant increase in tax payments, Q1 this year versus Q1 last year that we expected. The third factor was our CapEx spending was up in the quarter principally because we acquired one of our properties overseas in one of our international markets just made a lot of sense from a CapEx point of view. And then the full factor was overall timing of payments. So we expected all those going into the quarter. We knew that Q1’s cash flow was going to be lower than historic average. We understand all the differences and we’re on track to the 5.8.

Thanks Aaron. Next question please.

Our next question comes from Bill Shope with Goldman Sachs. Your line is open. Bill C. Shope – Goldman Sachs & Co.: Okay, thank you. Have you seen any changes to the product cost and margin profile as a result of the backlog changes? Or is that something that actually the tailwinds later this year? And I guess related to that last quarter you have mentioned that your bookings margins were higher than the recognized margins, so could you get some similar color for what you saw this quarter?

Yes, absolutely Bill. So a couple of things, if you go back to my prepared comments, we did say that, if you take out the impact of fixed costs on the margins because obviously from a storage product point of view, revenues were lowest. So backing out the impact of fixed costs, our margins on our storage product revenues were actually higher than they were in Q1 a year ago. And they reflect two things, one is the impact of the backlog rubbing in and the second would be a very comparable year-on-year overall booking margins. So our booking margins were basically similar, we’ve got a benefit from the backlog. In terms of the changes of business practices on the fixed cost just kind of where they impact things mainly. With a little bit of benefit you see our inventory levels are still high than we likened to be we have got a bit more work to do on inventory in the factories. And as we’ve continued to work that down, we expect to get more benefits into the fixed costs. Bill C. Shope – Goldman Sachs & Co.: Great, thank you.

Thanks, Bill. Next question, please.

Next, we have Daniel Ives with FBR. Your line is open. Daniel H. Ives – FBR Capital Markets & Co.: . : , c:

I don’t know if it has changed a lot, I mean I think obviously we are deeper into the transition that were customer realization that there is something big happening here and we call this Third Platform of IT. They understand that on the back of the Internet of things and the ability of having telemetry in almost every device they are going to be able to and to be able to analyze that collect it, analyze it and act on a newer plan. They are going to be able to change their business models and their industries are changing.: So there is a lot more focused on the future, that is causing caution on today, because obviously if you know you’ve to move to the future, you might say, what is the minimum I could spend on today to get to the future. And to give me the maximum amount of torch power if you will to spend on to move to the future. So obviously that is all excalating, it would be pockets of economic uncertainty out there around the world. There is obviously the emerging markets are little softer and there is lot factors affecting those markets. So I think it’s pretty much the same, but I guess we are in the later inning of the game. So last year in the second innings we are probably in the fourth inning this year. And it’s a pace of change to accelerating. And we are mixing no words, this is a huge secular shift, one personally I am excited about, because I think we have great assets to I believe we have great assets to capitalize on that. And again, it’s, as I said in my remarks not for the fainter heart, but if you do it right it’s going to be the best rewarded pay off.

Thanks Daniel. Daniel H. Ives – FBR Capital Markets & Co.: Thanks.

Next question, please.

Our next question comes from Lou Miscioscia, CLSA. Thank you. Louis R. Miscioscia – CLSA Americas LLC: Okay, great. Maybe you can give us some more color on the emerging market is down a bit or is that still better than others. What you’re seeing from a storage perspective and maybe a specific comment on China if you could?

Yes, Lou. Our emerging markets were actually impacted a fair amount by currency, also impacted bit by currency. So while we are down, one we were up one in constant currency, and BRIC plus 13, the biggest factor for us, it was last year really tough year-on-year compare in Brazil, we had 68% growth rate in Brazil, last year we had 37% growth rate in Latin America, because of that. If you take out Brazil or BRIC plus 13 markets were up by 7%. So much stronger the balance, so leverage within APJ, China was actually our strongest market. So we feel good about the progress that we are making in China. So I’ll give you a little bit of color from the puts and takes around the emerging markets.

Thanks Lou. We have time for one more question and then we’ll have a few concluding comments from Joe.

Thank you. Our last question comes from Maynard Um with Wells Fargo. Maynard J. Um – Wells Fargo Securities LLC: Hi thanks. So you talked about the benefits coming from the new product cycles at some point post to EMC World and beyond, but also talked about the secular trends in the pausing in spending as customers make IT decisions. So I’m just wondering relative to your full year guidance, if you can just talk about the balance between those two things and then also may be just share some of your views about what you are embedding for the full year in terms of macro and geography and maybe U.S. federal spend. Thank you.

: : : :

Thanks Maynard. Joe?

Well, let me again just start, where I finished where I started. I just want to thank you for being with us today. We truly and deeply believe that the EMC family of companies has great assets and great people that are really positioned and well positioned for the Third Platform IT. Customers trust us in this current client-server. Therefore, we think we are well positioned to help customers on that journey as they transition their IT but more importantly transition their enterprises, their companies into more of a software-defined, more flexible, more gradual enterprise. We have again really talented people. These talented people are excited about our future and our opportunities. :

Thank you. Thank you all for attending today’s conference. You may now disconnect.