VMware second quarter beats estimates

The virtualisation software company has delivered better-than-expected results and an upbeat outlook for the next three months

VMware delivered a better-than-expected second quarter and outlook for the three months ahead.

The virtualisation software company reported second-quarter earnings of $33m (£20m), or eight cents a share, down from $52m, or 13 cents a share a year ago. The company reported non-Gaap earnings of $96m, or 20 cents a share, on revenue of $456m, flat from a year ago. Wall Street was expecting earnings of 19 cents a share on revenue of $452.1m.

The outlook was also solid relative to expectations. VMware projected third-quarter revenue to be between $465m and $480m. Wall Street was expecting third-quarter sales of $471.1m. Revenue for 2009 will be up one percent to three percent.

In a statement, chief financial officer Mark Peek said the company is still cautious about the economy: "We are beginning to get somewhat better visibility into our business."