VMware earnings benefit from 'pent-up' demand

VMware earnings benefit from 'pent-up' demand

Summary: The company has raised revenue by 35 percent from last year, aided by strong performance in Europe, China, Japan and consumer spending

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TOPICS: Tech Industry
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VMware exceeded Wall Street estimates with a first quarter that illustrated strong growth prospects.

The virtualisation software company reported net income of $78m (£51m), or 19 cents a share, on revenue of $634m, up 35 percent from a year ago. Non-GAAP earnings were 32 cents a share.

In a statement, VMware chief financial officer Mark Peak said the company was benefiting from "pent-up customer demand, carried over from last quarter, as well as a strong performance in Europe, China and Japan." That demand picture is expected to continue. VMware projected second quarter revenue of $635m and $655m. That outlook includes revenue from Zimbra, which was acquired from Yahoo, and assets acquired from EMC, notably the Ionix IT management business. Wall Street was expecting revenue of $607m for the second quarter.

For more on this story, see VMware earnings shine, benefit from 'pent up customer demand' on ZDNet.com.

Topic: Tech Industry

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