VMware Q2 Revenue Up 48% To $674 Million

VMware today announced financial results for the second quarter 2010:

• Revenues for the second quarter were $674 million, an increase of 48% from the second quarter of 2009.
• GAAP operating income for the second quarter was $101 million, an increase of 166% from the second quarter of 2009.  Non-GAAP operating income for the second quarter was $187 million, an increase of 94% from the second quarter of 2009.
• GAAP net income for the second quarter was $75 million, or $0.18 per diluted share, compared to $33 million, or $0.08 per diluted share, for the second quarter of 2009.
  Non-GAAP net income for the second quarter was $142 million, or $0.34 per diluted share, compared to $80 million, or $0.20 per diluted share, for the second quarter of 2009.
• Cash, cash equivalents and short-term investments as of June 30, 2010 were $2.8 billion, an increase of 21% compared to a year ago. Total deferred revenues were $1.5 billion, an increase of 58% from the same period a year ago.
• For the trailing twelve months ended June 30, 2010, operating cash flows were $1.1 billion, an increase of 3% from the same period a year ago.  Trailing twelve month free cash flows were $1.0 billion, an increase of 33% from the same period a year ago.

US revenues for the second quarter increased 43% to $334 million from the second quarter of 2009.  International revenues for the second quarter grew 53% to $340 million from the second quarter of 2009.

License revenues were $324 million, an increase of 42% from the second quarter of 2009. Services revenues, which include software maintenance and professional services, were $350 million, an increase of 54% from the second quarter of 2009.

“Our strong second quarter results were driven by demand across all products and regions,” said Mark Peek, chief financial officer.  “For the third quarter, we expect license revenues to be flat sequentially and total revenues to increase to a range of $680 and $705 million.  For our 2010 annual revenues, we are raising our guidance to be in the range of $2.725 and $2.8 billion, an increase of 35% to 38% from 2009.”

“We are gratified that customers continue to recognize the value that VMware provides in modernizing infrastructures and providing a pragmatic path to cloud computing,” said Paul Maritz, president and chief executive officer.  “As customers continue on this path, they are looking for a strategic partner to help move them forward, and VMware will continue to invest to deliver solutions that enable IT-as-a-service.”