VMware's second quarter strong, sees upside ahead

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.

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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

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3 comments
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  • With all the drama around VMware's new licensing terms

    they might consider lowering their expectations a touch.
    rtk
    • RE: VMware's second quarter strong, sees upside ahead

      @rtk Why is everyone up in arms about the new licensing? Microsoft has been doing this for over a decade. I think the new licensing will actually help the end user and drive sales even further. Not to mention the other 60 products built on top of the hypervisor that VMware offers.
      arisaperstein@...
    • RE: VMware's second quarter strong, sees upside ahead

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      molly83