VMware: 'Somewhat better visibility' ahead

VMware delivered a better-than-expected second quarter and outlook for the three months ahead.The virtualization software company reported second quarter earnings of $33 million, or 8 cents a share, down from $52 million, or 13 cents a share a year ago.

VMware delivered a better-than-expected second quarter and outlook for the three months ahead.

The virtualization software company reported second quarter earnings of $33 million, or 8 cents a share, down from $52 million, or 13 cents a share a year ago. The company reported non-GAAP earnings of $96 million, or 20 cents a share, on revenue of $456 million, flat from a year ago. Wall Street was expecting earnings of 19 cents a share on revenue of $452.1 million.

The outlook was also solid relative to expectations. VMware projected third quarter revenue to be between $465 million and $480 million. Wall Street was expecting third quarter sales of $471.1 million. Revenue for 2009 will be up 1 percent to 3 percent.

In a statement, CFO Mark Peek said the company is still cautious about the economy "we are beginning to get somewhat better visibility into our business."

By the numbers:

  • U.S. revenue in the second quarter fell 3 percent compared to a year ago to $234 million. International revenue was up 3 percent in the quarter to $222 million.
  • Service revenue was up 32 percent from a year ago, but license revenue fell 20 percent.
  • The company ended the quarter with $2.3 billion in cash and equivalents.

Newsletters

You have been successfully signed up. To sign up for more newsletters or to manage your account, visit the Newsletter Subscription Center.
Subscription failed.
See All