Filed by EMC Corporation
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Legato Systems, Inc.
Commission File No. 000-26130
This filing relates to the proposed merger ("merger") pursuant to the terms of
that certain Agreement and Plan of Merger, dated as of July 7, 2003 (the
"Merger Agreement"), by and among EMC Corporation ("EMC"), Eclipse Merger
Corporation, a wholly owned subsidiary of EMC, and Legato Systems, Inc.
("Legato"). The Merger Agreement is on file with the Securities and Exchange
Commission as an exhibit to the Current Report on Form 8-K filed by EMC on July
8, 2003, and is incorporated by reference into this filing.
The following is a Company information summary.
Additional Information and Where to Find it
On September 12, 2003, EMC filed a registration statement on Form S-4 with the
U.S. Securities and Exchange Commission (the "SEC") containing a definitive
proxy statement/prospectus regarding the merger. Investors and security holders
of EMC and LEGATO are urged to read the registration statement, the proxy
statement and any other relevant documents filed with the SEC by EMC and/or
LEGATO because they contain important information about EMC, LEGATO and the
merger. Investors and security holders may obtain a free copy of the
registration statement, the proxy statement and any other relevant documents
filed with the SEC by EMC and/or LEGATO at the SEC's website at www.sec.gov.
Free copies of the registration statement, the proxy statement and each
company's other filings with the SEC also may be obtained from the respective
companies. Free copies of EMC's filings may be obtained by directing a request
to EMC. You can request this information via the web at www.EMC.com/IR/request
or by sending a written request to EMC Investor Relations, EMC Corporation, 176
South Street, Hopkinton, MA 01748. Free copies of LEGATO's filings may be
obtained by directing a request to LEGATO Investor Relations, LEGATO Systems,
Inc., 2350 West El Camino Real, Mountain View, CA 94040. In addition, investors
and security holders may access copies of the documents filed with the SEC by
EMC on EMC's website at www.emc.com, and investors and security holders may
access copies of the documents filed with the SEC by LEGATO on LEGATO's website
at www.legato.com.
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Forward Looking Statements
This document contains "forward-looking statements" as defined under the Federal
Securities Laws. Actual results could differ materially from those projected in
the forward-looking statements as a result of certain risk factors, including
but not limited to: (i) risks associated with strategic investments and
acquisitions, including the challenges and costs of closing, integration,
restructuring and achieving anticipated synergies associated with the announced
plans to acquire LEGATO Systems, Inc. (Nasdaq: LGTO) and Documentum, Inc.; (ii)
adverse changes in general economic or market conditions; (iii) delays or
reductions in information technology spending; (iv) the transition to new
products, the uncertainty of customer acceptance of new product offerings, and
rapid technological and market change; (v) insufficient, excess or obsolete
inventory; (vi) competitive factors, including but not limited to pricing
pressures; (vii) component quality and availability; (viii) the relative and
varying rates of product price and component cost declines and the volume and
mixture of product and services revenues; (ix) war or acts of terrorism; (x) the
ability to attract and retain highly qualified employees; (xi) fluctuating
currency exchange rates; and (xii) other one-time events and other important
factors disclosed previously and from time to time in EMC's and Documentum's
filings with the U.S. Securities and Exchange Commission. EMC and Documentum
disclaim any obligation to update any such-forward looking statements after the
date of this document.
Slide 1 -
Appendix - Facts and Figures
Slide 2 -
Documentum/EMC Facts and Figures - 2002 data
Fact EMC Documentum Legato
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Revenues '02 $5.4B $227MM $261M
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Open Software Revenue $110 M license only $69MM (36MM/52% Svcs,33MM/ $76.6 (34.8 SW; 41.7 SVCS)
Q2'03 48% Lic.)
3Q forecast: $73.5MM
LTM: $275MM
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Channel Mix Slightly less than Direct 87% Direct 25%
2/3 Direct Indirect 13% Indirect 75%
More than 1/3 Indirect
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Geographic Mix 2Q'03 License Revenue (2Q03) NA 54%
NA 60% NA: 53% EMEA 35%
EMEA 27% Europe: 38% ROW 11%
ROW 13% ROW: 9%
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Number of employees WW 17,200 Approx. 1144 1560
179 (G&A)
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Total 2002 R&D spend $781M $38M 69M
EMC spends 75% of R&D
on SW (Platform +
Multi-platform)
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Number of R&D employees 3000 266 452
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Slide 3 -
Documentum/EMC Facts and Figures - 2002 data
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Fact EMC Documentum Legato
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Number of sales reps 5600 (customer facing employees) 573 customer facing personnel 230 reps; 140 SEs
420 are commissioned 500 customer facing personnel
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Number of customers Presence in majority of Fortune Enterprise focus 31,000 installed customers
1000
2500 overall Over 350 of Global 500 (>70%)
Approx. 9,900 customers at the
parent company level Mostly Global 2000
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Product focus Storage systems, software, Enterprise Content Management Information Access (App/Email
services Solutions with five editions: XTender)
o records management,
o digital asset management, Application Availability
o Documents management (RepliStor, Cluster Server)
o Collaboration content
o Web content Information Protection (Networker,
DiskXtender, AlphaStor)
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Product Mix 2Q'03 Total 2Q'03 Storage (2Q03) FY02
54% Systems 55% Systems 52 % Services 43% License
22% Software 22% Software 48 % Licensing 7% Royalty
22% Services 23% Services 49% Service/Maintenance
3% Other
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Customer Satisfaction >95% High (no satisfaction scores 92% cust sat and renewals over 90%
available): 60-80% of revenue (Q2 current)
from existing customers (77%
in 2Q02)
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Number of channel 300 550 (source: CIBC) - [approx.] Over 400 channel partners
partners 76% of revenue influenced by
partners 1028 certified specialists
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