VMware beats forecast with strong Q2 results

Revenue and profit were both up sharply from a year ago, the company said

VMware on Tuesday reported a 48 percent jump in revenue for the second quarter, a greater increase than expected, and raised its outlook for the full year on strong demand for its virtualization software.

The results see VMware back on a growth streak after its business sputtered during the recession. Its sales were flat in the second quarter last year but gradually recovered, increasing 18 percent in the December quarter and 35 percent in the first three months of this year.

Revenue for the quarter just ended was US$674 million, up from $456 million a year earlier and ahead of the $656 million that financial analysts had been expecting, according to Thomson Reuters.

Net profit was $75 million, or $0.18 per share, more than double the $33 million, or $0.08 per share, that VMware reported a year earlier. Excluding one-time charges the profit would have been $0.34 per share, $0.02 ahead of the analyst forecast.

Sales of new software licenses, seen as a measure of future growth, increased by 42 percent to $324 million. Services revenue, including software maintenance fees, climbed at a slightly higher rate to $350 million, VMware said.

The company expects to book about the same amount of license revenue in the third quarter, along with total revenue of up to $705 million -- higher than analysts currently expected. VMware raised its guidance for the full year to between $2.7 billion and $2.8 billion, which would be a 35 percent increase from 2009.

The results were driven by demand across all products and regions, Chief Financial Officer Mark Peek said in a statement.

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesVMwarevirtualizationfinancial results

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

James Niccolai

IDG News Service
Show Comments

Essentials

Mobile

Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Exec

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?