VMware Q1 Earnings Show Double-Digit Revenue, Profit
Income from VMware's services and licensing businesses were up 14 percent and 15 percent, respectively.VMware made public its first quarter 2014 earnings on April 22, reporting that its profit climbed 15 percent year over year as the virtualization kingpin exhibited notable growth in services and license revenue. The company, owned by longtime data storage market leader EMC, reported a profit of $199 million (46 cents a share), an increase from $173 million in the previous year. Revenues for the first quarter were also up in impressive fashion, totaling $1.36 billion -- a similar increase of 14 percent over the first quarter 2013. Those numbers beat projections by Wall Street analysts, who predicted revenue of $1.35 billion. Income from VMware's services business, which continues to grow and now accounts for more than half of the company's revenue, also moved up by 14 percent. License revenue, for mainline products such as vSphere and others, rose 15 percent.
The Palo Alto, Calif.-based enterprise software maker's road map includes increasing its presence in the mobile-device market. Its Jan. 22 acquisition of mobile device management company AirWatch for $1.54 billion was the largest acquisition in the company's 15-year history.