VMware tops Q2 expectations while investors push for split from EMC

Summary:UPDATED: Wall Street was expecting earnings of at least 79 cents per share on a revenue of $1.44 billion.

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Following news that investors might be pushing EMC to spin off a particular cloud software unit, VMware published second quarter earnings after the bell on Tuesday.

The virtualization giant reported a net income of $167 million, or 38 cents per share (statement).

Non-GAAP earnings were 81 cents per share on a revenue of $1.46 billion, up 17 percent annually.

Wall Street was expecting earnings of at least 79 cents per share on a revenue of $1.44 billion.

CEO Pat Gelsinger reflected on the quarter in prepared remarks.

We continue to see strong performance across our business, further evidence that VMware is uniquely positioned as IT transitions from client server computing to the mobile cloud era. Across the board, customers are turning to VMware solutions to help chart an efficient path to the future without sacrificing the vital needs for security, availability and compliance required by all businesses.

For the current quarter, analysts expect VMware to deliver earnings of 87 cents per share on a revenue of $1.5 billion.

VMware is expected to provide third quarter guidance during a conference call with shareholders at 2PM PT/5PM ET.

Aside from guidance, shareholders will also likely be keen to hear what VMware executives have to say about recent reports about the influence and interests of hedge fund Elliott Management Corp., which reportedly made a $1 billion activist investment in parent company EMC.

EMC will follow with its own second quarter earnings report on Wednesday morning before the opening bell.

UPDATE: VMware CFO Jonathan Chadwick followed up with guidance during the call, providing a revenue guidance range of $1.48 billion to $1.52 billion.

Chart via VMware Investor Relations

Topics: Virtualization, Cloud, Data Management, Enterprise 2.0, Enterprise Software

About

Rachel King is a staff writer for CBS Interactive based in San Francisco, covering business and enterprise technology for ZDNet, CNET and SmartPlanet. She has previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish Americ... Full Bio

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