Diane Green

VMware’s Financial Results For Q1 Are In, 69 Percent Revenue Increase Beats Wall Street Expectations

April 23, 2008 by Robin Wauters Leave a Comment

VMware today announced financial results for the first quarter of 2008:

Revenues for the first quarter were $438 million, an increase of 69% compared to the first quarter of 2007. (Analysts were expecting a top line of $422.4 million, according to Thomson Financial.)
GAAP operating income for the first quarter was $48 million, compared to $46 million in the first quarter of 2007. Non-GAAP operating income was $106 million, an increase of 62% over the year-ago quarter.
GAAP net income for the quarter was $43 million, or $0.11 per diluted share, compared to $41 million, or $0.12 per diluted share, in the year-ago quarter. Non-GAAP net income for the quarter was $88 million, or $0.22 per diluted share, compared to $0.16 a year ago.

First-quarter U.S. revenues grew 65% compared to the year-ago quarter on increased demand from large enterprises standardizing on the VMware platform and an increase in the number of smaller transactions delivered through VMware channel partners. International revenues, which increased 74%, were driven in part by triple-digit business growth across Australia and emerging markets including Brazil, China, India and Russia.

Software license revenue grew 73% compared to the same period last year to $294 million and service revenue, including support, subscription and professional services, increased 62% to $144 million.

As for the financial outlook:

VMware continues to expect 2008 revenue growth of approximately 50% compared to 2007.

Second quarter 2008 revenues are expected to increase approximately 55% compared to the second quarter of 2007.

The stock was up $1.95, or 3.5%, to $58.02 in after-hours trading.

“Our product suite has a very high return on investment,” Greene said. “That puts us in a very good position for getting wallet share as the economy gets a little more uncertain.” Large deals, valued at $1 million and up, made up 20% of bookings during the quarter, Greene said in an interview.

Total bookings were not disclosed.

[Source: TheStreet]

Get Maximum Exposure: Hire A Blonde Executive Who Forgets Your Virtualization Company Slogan But Knows How To Do Card Tricks

March 12, 2008 by Robin Wauters 1 Comment

Never one to shy away from extensive research, Virtualization.com has analyzed its visitor statistics for our extensive VMworld Europe 2008 video coverage, proving that eyeballs for interviews don’t necessarily follow the trail of the most reputable interviewees or eloquent answers. Allow us to share a few proven online marketing techniques, which apparently skew the video metrics and raise exposure dramatically:

Blonde female executives get more attention than male gurus

For reasons beyond our understanding, the Virtualization.com audience prefers watching a smart blonde female executive 4 times more than a seasoned male expert from the virtualization trenches. Our professional advice: start shaving your legs, guys …

CEOs who pretend to forget their great company base line

We love technology gossip sites like Valleywag.com . And apparently, your hard-to-reach target audience of CIO’s, venture capitalists & IT managemers is much like us and seems to spend less time analyzing dull virtualization reports from Gartner or IDC and more time on popular, snarky tech blogs. Raise the attention you get from folks at Silicon Valley by instructing your foreign language CEO to make a remarkable introduction (over 1.600 views and counting). Make sure to reference the interview on your own corporate website too, so nobody misses out on it. Lots of free publicity guaranteed!

Demonstrations are more attractive when popular YouTube keywords are included

Due to the nature of flash video hosting websites, it always helps to spice your boring software product presentations with some interactive tricks of general interest. Card tricks prove to be such a popular category on YouTube (26.000 results and counting). This is also how the Marketing Manager with Veeam garnered a lot more attention for his VMworld booth during the event and for ever after on those flash video hosting platforms … After the magic, he continues with a demo on their software solutions. Unfortunately our web analytics do not reveal how many of those card lovers understand the tricks & benefits Veeam software could provide them.

For now the PR and marketing officers at Veeam seem to rule at this game and take away the main prize for maximizing their VMworld Europe 2008 exposure with a double entry in this Top 3!

We are already looking forward to our interview with the naturally blonde Diane Greene, CEO of VMware. At this point, it’s unclear if she knows about the foreign-accent-amnesia combined with card-trickery skills the interviewees above seem to have mastered. But we promise to dig into the matter!

VMware: Not just hypervisor revenue

September 12, 2007 by Robin Wauters Leave a Comment

Stephen Shankland from CNET reported that more than 80 percent of VMware income comes from higher-level tools, a move that gives the EMC subsidiary more breathing room against rivals.

In the old days, VMware made its money selling core virtualization software called a hypervisor that lets a computer run several operating systems simultaneously. Now it’s moved beyond that.

“Over 80 percent of our revenue comes from outside of our hypervisor today,” VMware President Diane Greene said in a press meeting at the company’s VMworld show in San Francisco. “We’ve done a very effective job of building products that unlock the value of virtualization for our users.”

That’s significant, given the competitive realities that face the company. The open-source Xen hypervisor today is available for free, and Microsoft plans to build a hypervisor code-named Viridian into its future Windows Server. Read more at source.