VMware: 'Somewhat better visibility' ahead

VMware: 'Somewhat better visibility' ahead

Summary: 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.

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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.

Topics: VMware, Banking, Enterprise Software

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  • my advise to VMWare

    Great product, lousy sales & website. The website could be MUCH clearer on the various versions, how they relate (product matrix), and what works with what. Also, sell the software online and don't make me go through salespeople. It's not a used car lot, afterall.

    gary
    gdstark13
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