VMware Earnings Indicate There's More Room for Growth
First-quarter net income was $161 million, down from $196 million a year ago. Total revenue was $1.6 billion, which was up 6 percent.VMware's first-quarter 2016 financial report April 19 was all about the company numbers and didn't have to mention layoffs as it did last quarter, when the company announced that it was trimming 800 of its 19,000 jobs. This workforce action was largely due to preparation for the acquisition of EMC, VMware's majority owner, by Dell, which was revealed Oct. 12. The world's largest virtualization software company reported April 19 that its profits exceeded Wall Street estimates. First-quarter net income was $161 million, down from $196 million a year ago. Total revenue was $1.6 billion. Analysts had projected profit of 84 cents a share and revenue of $1.58 billion, according to data compiled by Bloomberg. "Q1 was a good start to 2016, both for results and against our strategic goal of building momentum for our newer growth businesses and in the cloud," CEO Pat Gelsinger said on the conference call. "Our results were in line with our expectations for the period and support our outlook for the full year that we articulated in January.
"We grew total revenue 6 percent year-over-year in constant currency to $1.6 billion. VMware's value proposition around the hybrid cloud, software-defined data center and end-user computing continued to resonate with our customers around the world."