VMware beats Q2 expectations with $1.24B in revenue, 79 cents in EPS

VMware turned in a solid second quarter earnings report after the bell on Tuesday.

The virtualization giant reported a second quarter net income of $244 million with earnings of 57 cents per share (statement). Non-GAAP earnings were 79 cents per share on a revenue of $1.24 billion, an 11 percent increase from the same time last year.

Wall Street was looking for earnings of 77 cents per share on a revenue of $1.23 billion.

CEO Pat Gelsinger reflected on the quarter in prepared remarks:

The second quarter was a strong finish to a solid first half of 2013 for VMware. We see a significant market opportunity in the second half of 2013 and beyond. VMware continues to succeed because we are uniquely positioned to help customers move from the client-server era to the mobile-cloud era of computing. As we help them bridge to this new world, we're empowering businesses to capture new levels of efficiency, control and agility.

For the third quarter, Wall Street expects VMware to deliver earnings of 81 cents per share on a revenue of $1.28 billion.

VMware is projecting Q3 revenue to fall within the range of $1.27 billion to $1.30 billion.

For the full year, VMware offered a forecasted revenue range of $5.12 billion to $5.26 billion.

Here are more highlights from VMware's Q3:

• VMware strengthened a number of industry partnerships. The virtualization giant teamed with SAP to make the German software company's solutions available on VMware vCloud Hybrid Service.
• Cloudera Enterprise is also now certified to run on VMware's vSphere.
• Product debuts included the infrastructure-as-a-service offering vCloud Hybrid Service and the automated log management tool vCenter Log Insight.