VMware's third quarter financial results were better than expected based on maintenance renewals and federal IT spending.
The company reported net income of $38 million, or 9 cents a share, down from $83 million, or 21 cents a share a year ago. Non-GAAP net income of $95 million, or 24 cents a share, flat with a year ago. Wall Street was expecting earnings of 20 cents a share. Revenue for the quarter was $490 million, up 4 percent from a year ago.
By the numbers:
- U.S. revenue fell 1 percent in the third quarter to $246 million. International revenue was up 9 percent to $244 million.
- Service revenue was up 33 percent from a year ago.
- Cash and equivalents at the end of the quarter were $2.3 billion.
- Deferred revenue was $990 million, up 27 percent from a year ago.
In a statement, VMware CEO Paul Maritz said the company was "well positioned to help take our customers on an evolutionary path forward." That pitch appears to be resonating, judging by attendees at the Gartner IT Symposium 2009. The hybrid private/public cloud computing approach is clearly winning the enterprise day. Here's a representative slide regarding the private/public cloud tug-of-war.