VMware earnings benefit from 'pent-up' demand

Summary:The company has raised revenue by 35 percent from last year, aided by strong performance in Europe, China, Japan and consumer spending

VMware exceeded Wall Street estimates with a first quarter that illustrated strong growth prospects.

The virtualisation software company reported net income of $78m (£51m), or 19 cents a share, on revenue of $634m, up 35 percent from a year ago. Non-GAAP earnings were 32 cents a share.

In a statement, VMware chief financial officer Mark Peak said the company was benefiting from "pent-up customer demand, carried over from last quarter, as well as a strong performance in Europe, China and Japan." That demand picture is expected to continue. VMware projected second quarter revenue of $635m and $655m. That outlook includes revenue from Zimbra, which was acquired from Yahoo, and assets acquired from EMC, notably the Ionix IT management business. Wall Street was expecting revenue of $607m for the second quarter.

For more on this story, see VMware earnings shine, benefit from 'pent up customer demand' on ZDNet.com.

Topics: Tech Industry

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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