VMware Profit Shoots Up 25 Percent in Q1 Report
Strong demand for cloud system-related software drives total income for Q1 2012 to $1.06 billion, an increase of 52 percent from the first quarter of 2011.Virtualization king VMware, long one of the most successful software companies on the planet, reported another banner financial quarter April 18, adding 52 percent more income and 25 percent more profit year over year based on strong license revenue and services. Total income for Q1 2012 was $1.06 billion, an increase of 52 percent from the first quarter of 2011. Net income was $191 million (44 cents per diluted share), up 25.1 percent over $126 million from a year ago.
International revenue made up 54 percent of total revenue for the period, the highest level for any quarter reported by the Palo Alto, Calif.-based company. The stock price rose 2.8 percent to $114.38 in extended trading after the report. Earlier, the stock added 0.7 percent to $111.29 at the close. The shares have risen 34 percent in value this year, Peek said. For the full year, VMware said sales will be $4.53 billion to $4.63 billion, in line with analysts estimates of $4.56 billion. Operating margin for the year will be 30.25 percent to 31.25 percent of sales.