VMware beats Q1 expectations

VMware surpasses earnings and revenue expectations for the quarter, which saw growing interest in its SDDC and cloud portfolio.
Written by Stephanie Condon, Senior Writer

VMware on Thursday reported its financial results for the first quarter of fiscal 2018, beating market expectations.

The company reported non-GAAP net income for the quarter of $412 million, or 99 cents per diluted share, on revenue of $1.74 billion.

Wall Street was looking for earnings of 96 cents a share on revenue of $1.71 billion.

License revenue for Q1 totaled $610 million, while non-GAAP operating income was $495 million. Operating cash flows came to $775 million, while free cash flows for the quarter were $726 million.

In a statement, CEO Pat Gelsinger noted increased customer interest in Q1 for VMware's SDDC and cloud portfolio, as well as its digital workspace offerings. Gelsinger also noted VMware's work over the quarter to bolster its partner ecosystem, including announcements with Google, Microsoft and Oracle.

CFO Zane Rowe, added in a statement, "We're pleased with our performance and remain committed to providing value to our customers as they build out their private, public and hybrid cloud strategies."

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