VMware's second quarter strong, sees upside ahead

Summary:The company projected third quarter revenue between $915 million to $940 million compared to estimates of $898 million.

VMware reported second quarter earnings of $220 million, or 51 cents a share, on revenue of $921 million, up 37 percent from a year ago. Non-GAAP earnings were 55 cents a share.

Wall Street was looking for earnings of 47 cents a share on revenue of $873 million.

The company's second quarter sales were almost evenly split between U.S. ($450 million) and international revenue ($471 million).

In a statement, VMware CEO Paul Maritz said the company's results indicate "the continued adoption of virtualization."

As for the outlook, VMware projected a strong third quarter. The company projected third quarter revenue between $915 million to $940 million compared to estimates of $898 million. The company did say that non-GAAP operating margins would fall in the third quarter relative to the second.

For 2011, VMware projected that sales will be between $3.65 billion and $3.75 billion. Wall Street was looking for $3.68 billion.

Topics: Banking, Hardware, Virtualization, VMWare

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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