VMware delivers strong Q1

Summary:VMware had a busy first quarter after it completed the acquisition of AirWatch, which gave the company a mobile strategy. The company also launched virtual storage software.

VMware delivered strong first quarter results that were in line with expectations.

The company reported first quarter earnings of $199 million, or 46 cents a share, on revenue of $1.36 billion, up 14 percent from a year ago. Non-GAAP earnings were 80 cents a share.

Wall Street was looking for earnings of 79 cents a share on revenue of $1.35 billion.

The company reaffirmed its outlook for 2014 and said revenue will be between $5.94 billion and $6.1 billion. For the second quarter, VMware projected revenue between $1.42 billion and $1.46 billion, in line with expectations. 

VMware had a busy first quarter after it completed the acquisition of AirWatch, which gave the company a mobile strategy. The company also launched virtual storage software.

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By the numbers:

  • VMware's license revenue in the first quarter was $561 million, up from $488 million a year ago. License revenue was 41.2 percent of sales.
  • Services revenue in the quarter was $799 million, up from $703 million a year ago. According to VMware, 51.6 percent of services revenue was software maintenance.
  • International revenue was 52.3 percent of sales, flat with a year ago.
  • The company ended the quarter with $6.62 billion in cash and equivalents.

More:

Topics: Virtualization, Enterprise Software

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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