VMware tops Q2 earnings as revenue climbs 11 percent

VMware finance chief Zane Rowe said the company is still on track with the $1.2 billion stock repurchase announced last quarter.

VMware reported second quarter earnings and revenue Monday after the bell.

The virtualization giant reported a net income of $265 million, or 62 cents per share (statement).

Non-GAAP earnings were 97 cents per share on a revenue of $1.69 billion, up 11 percent year over year.

Wall Street was looking for earnings of 95 cents per share with revenue of $1.68 billion.

VMware finance chief Zane Rowe said the company is still on track with the $1.2 billion stock repurchase announced last quarter.

VMware's share price has so far ticked up around 5 percent in after-hours trading. As for the current quarter, VMware will provide guidance during its conference call. Wall Street is looking for non-GAAP earnings of $1.05 per share with $1.72 billion in revenue.

The cloud software and services company is still gearing up for the proposed merger between its parent company EMC and Dell. In May, VMware CEO Pat Gelsinger said VMware's operations would remain largely unchanged while Dell and EMC worked through restructuring and integration efforts for the two companies.

There had been speculation that VMware would be spun off following the Dell/EMC merger, but VMware insists no such plans exist. The company said it will be folded into the Dell EMC enterprise division under the merged parent entity, to be named Dell Technologies. Dell has also pledged to create a $1 billion revenue acceleration into VMware following the merger.

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