VMware Nearly Triples Profits Over Year-Ago Q2
Enterprise virtualization software provider VMware (NYSE:VMW) posted an impressive quarterly earnings report July 19, nearly tripling its profits over the same quarter a year ago.
The Palo Alto, Calif.-based company's net income for the second quarter of 2011 was $220 million, compared with $75 million in 2010.
VMware's revenue in its fiscal Q2 climbed to $921 million, yielding 51 cents per share and representing an increase of 37 percent from the second quarter of 2010. The analysts' consensus was in the neighborhood of $873 million in revenue and 47 cents per share.
For Q3 2011, VMware's CFO Mark Peek said the company projects another 30 percent rise in revenue, ranging from $915 million to $940 million-well ahead of the average $899 million estimate by Wall Street analysts.
Peek said earnings were driven by record enterprise license-agreement bookings as a percentage of total bookings across all geographic markets.
License revenues for the quarter were $465 million, an increase of 44 percent from the second quarter of 2010 as reported, and an increase of 40 percent measured in constant currency. Service revenues, which include software maintenance and professional services, were $456 million for the second quarter of 2011, an increase of 30 percent from the second quarter of 2010.
U.S. revenues for the second quarter of 2011 grew 35 percent to $450 million from the second quarter of 2010. International revenues grew 38 percent to $471 million from the second quarter of 2010.