VMware delivered strong third quarter earnings and revenue as demand for virtualization continued unabated. The company also raised its outlook for the fourth quarter.
The company on Monday reported net income of $85 million, or 20 cents a share. On a non-GAAP basis, VMware reported earnings of $165 million, or 39 cents a share. Revenue for the third quarter was $714 million, up 46 percent from a year ago.
Wall Street was expecting VMware to report earnings of 35 cents a share on revenue of $698 billion.
The outlook was also strong. VMware projected revenue between $790 million and $810 million. Wall Street was expecting $774 million.
Overall, VMware's quarter was strong across the board. In a statement, VMware's Mark Peek, chief financial officer, said federal government spending was a stand out. VMware CEO Paul Maritz said that virtualization was "a central technology in cloud computing."
By the numbers (statement):
- License revenue for VMware's third quarter was $343 million, up 43 percent from a year ago.
- Services revenue, which includes maintenance and services, was $371 million, up 49 percent from a year ago.
- U.S. revenue in the quarter was $362 million, up 47 percent. International revenue was $352 million, up 44 percent.
- The company ended the quarter with $2.17 billion in cash and equivalents.