VMware delivers strong Q1
VMware delivered strong first quarter results that were in line with expectations.
The company reported first quarter earnings of $199 million, or 46 cents a share, on revenue of $1.36 billion, up 14 percent from a year ago. Non-GAAP earnings were 80 cents a share.
Wall Street was looking for earnings of 79 cents a share on revenue of $1.35 billion.
The company reaffirmed its outlook for 2014 and said revenue will be between $5.94 billion and $6.1 billion. For the second quarter, VMware projected revenue between $1.42 billion and $1.46 billion, in line with expectations.
VMware had a busy first quarter after it completed the acquisition of AirWatch, which gave the company a mobile strategy. The company also launched virtual storage software.
By the numbers:
- VMware's license revenue in the first quarter was $561 million, up from $488 million a year ago. License revenue was 41.2 percent of sales.
- Services revenue in the quarter was $799 million, up from $703 million a year ago. According to VMware, 51.6 percent of services revenue was software maintenance.
- International revenue was 52.3 percent of sales, flat with a year ago.
- The company ended the quarter with $6.62 billion in cash and equivalents.
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