VMware results ride strong upgrade cycle

The company has reported strong results for the second quarter, owing to the continued enterprise ugrade cycle

VMware reported strong second-quarter results and raised its revenue outlook as customers continue to use virtualisation software to upgrade datacentres.

The company on Tuesday reported net income of $75m (£49m), or 18 cents a share, in the second quarter, according to a statement. Non-GAAP earnings were 34 cents a share. Revenue was $674m, up 48 percent from a year ago. Wall Street was looking for earnings of 32 cents a share on revenue of $656.9m.

Meanwhile, VMware raised its outlook for 2010 as the company continues to ride an enterprise upgrade cycle. The company said third-quarter revenue will be flat with the current quarter and in the range of $680m and $705m. Wall Street was looking for revenue of $672m in the third quarter. For 2010, VMware projected revenue of $2.72bn and $2.8bn, ahead of Wall Street estimates of $2.7bn.

For more on this story, see VMware earnings: Strong second quarter, ups outlook amid strong demand on ZDNet.com.