VMware results ride strong upgrade cycle

Summary:The company has reported strong results for the second quarter, owing to the continued enterprise ugrade cycle

VMware reported strong second-quarter results and raised its revenue outlook as customers continue to use virtualisation software to upgrade datacentres.

The company on Tuesday reported net income of $75m (£49m), or 18 cents a share, in the second quarter, according to a statement. Non-GAAP earnings were 34 cents a share. Revenue was $674m, up 48 percent from a year ago. Wall Street was looking for earnings of 32 cents a share on revenue of $656.9m.

Meanwhile, VMware raised its outlook for 2010 as the company continues to ride an enterprise upgrade cycle. The company said third-quarter revenue will be flat with the current quarter and in the range of $680m and $705m. Wall Street was looking for revenue of $672m in the third quarter. For 2010, VMware projected revenue of $2.72bn and $2.8bn, ahead of Wall Street estimates of $2.7bn.

For more on this story, see VMware earnings: Strong second quarter, ups outlook amid strong 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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