VMware Reports Q1 2010 Results

VMware this week announced financial results for the first quarter 2010:

• Revenues for the first quarter were $634 million, an increase of 35% from the first quarter of 2009.
• GAAP operating income for the first quarter was $102 million, an increase of 18% from the first quarter of 2009.  Non-GAAP operating income for the first quarter was $175 million, an increase of 45% from the first quarter of 2009.
• GAAP net income for the first quarter was $78 million, or $0.19 per diluted share, compared to $70 million, or $0.18 per diluted share, for the first quarter of 2009. Non-GAAP net income for the first quarter was $133 million, or $0.32 per diluted share, compared to $100 million, or $0.25 per diluted share, for the first quarter of 2009.
• Cash and cash equivalents as of March 31, 2010 were $2.8 billion, an increase of 36% compared to a year ago. Total deferred revenues were $1.4 billion, an increase of 48% from the same period a year ago.
• Operating cash flows were $355 million, an increase of 37% from the first quarter of 2009. Free cash flows for the quarter were $326 million, an increase of 68% from the first quarter of 2009.  For the trailing twelve months ended March 31, 2010, operating cash flows were $1.1 billion and free cash flows were $972 million.

US revenues for the first quarter increased 30% to $317 million from the first quarter of 2009.  International revenues for the first quarter grew 40% to $317 million from the first quarter of 2009.

License revenues were $312 million, an increase of 21% from the first quarter of 2009.
Services revenues, which include software maintenance and professional services, were $322 million, an increase of 51% from the first quarter of 2009.

“The quarter’s strong performance reinforces our position that virtualization is becoming a cornerstone for customer’s IT strategy, particularly since it enables them an evolutionary path forward to cloud computing,” said Paul Maritz, president and chief executive officer.  “With this broad acceptance of virtualization, it allows us to maintain an innovative and aggressive strategy to help remove complexity from IT and deliver on our vision of enabling IT-as-a-service.”

Recent Highlights & Strategic Announcements

• VMware Partner Exchange 2010 broke the event’s 2009 attendance and sponsorship records with more than 2,600 attendees and 55 sponsors, including Arrow ECS, Cisco, EMC, HP, Ingram Micro, NetApp, Novell, Trend Micro and Wyse.
• VMware announced a definitive agreement with EMC to acquire certain products and expertise from EMC’s Ionix IT management business, including solutions aimed at delivering improved management and deployment of servers and applications in a virtualized data center.
• VMware announced programs for the Small and Medium Business (SMB) market including the availability of VMware Go, a Web-based service that provides an easy on-ramp to virtualization, and the promotion of vSphere Essentials, offering up to 50% off the list price for SMBs.
• Cisco and NetApp, along with VMware introduced a Secure Multi-tenancy Design Architecture designed to provide enhanced security in cloud environments.