earnings call

VMware: Fourth Quarter Disappointing But Still Better Than Expected

January 26, 2009 by Robin Wauters Leave a Comment

VMware today announced financial results for the fourth quarter and full year 2008.

Revenues for the fourth quarter were $515 million, an increase of 25% from the fourth quarter of 2007.
GAAP operating income for the fourth quarter was $102 million, an increase of 34% from the fourth quarter of 2007. Non-GAAP operating income for the fourth quarter was $135 million, an increase of 25% from the fourth quarter of 2007.
GAAP net income for the fourth quarter was $111 million, or $0.29 per diluted share, compared to $78 million, or $0.19 per diluted share, for the fourth quarter of 2007. Non-GAAP net income for the quarter was $142 million, or $0.36 per diluted share, compared to $103 million, or $0.26 per diluted share, for the fourth quarter of 2007.
Revenues for the full year 2008 were $1.9 billion, an increase of 42% from 2007.
GAAP operating income for the full fiscal year 2008 was $313 million, an increase of 33% from 2007. Non-GAAP operating income for the year 2008 was $469 million, an increase of 39% from 2007.
GAAP net income for the full fiscal year 2008 was $290 million, or $0.73 per diluted share, compared to $218 million, or $0.61 per diluted share, for 2007. Non-GAAP net income for the year 2008 was $416 million, or $1.05 per diluted share, compared to $295 million, or $0.82 per diluted share, for 2007.
Cash was more than $1.8 billion and deferred revenue was $870 million as of December 31, 2008. Since the beginning of 2008, cash increased 50% and deferred revenue increased 57%.

U.S. revenues for 2008 grew 37% to $988 million from 2007. International revenues grew 48% to $893 million from 2007.

License revenues for 2008 grew 30% to $1.2 billion from 2007. Services revenues grew 67% to $703 million from 2007.

(Release)

For analysis, read Tech Trader Daily and Between The Lines.

VMware Earnings Call: Solid Q3, Maritz Not Afraid Of Microsoft

October 22, 2008 by Robin Wauters Leave a Comment

VMware reported better than expected financial results today and said it was standing by its forecast for the rest of the year, albeit at the lower end of its guidance.

Revenue for the third quarter was US$472 million, up 32 percent from the same period a year ago. That’s slower growth than VMware has reported in the past, but still ahead of the $463 million that financial analysts had been expecting, according to a poll by Thomson Reuters.

Net income was $83 million, or $0.21 per share, up from $65 million, or $0.18 per share, in the third quarter last year. That too was ahead of the analyst forecast, which called for earnings of $0.20 per share.

VMware maintained its forecast for 2008 revenue growth of 42 percent to 45 percent, but it cautioned that the economic uncertainty makes it difficult to predict demand for its products. It said there was “an increased likelihood that 2008 revenue will be at the lower end of the guidance range.”

VMware CEO Paul Maritz called the figures “solid” in the face of a “challenging economic environment.” During the call with financial analysts, Maritz also said VMware has not seen its sales drop off since Microsoft introduced Hyper-V into the virtualization market in June. Maritz is also confident that VMware’s product roadmap is a full 12 to 24 months ahead of Microsoft’s virtualization roadmap.

EMC Reports Strong Q2 Results, Might Spin Off VMware Anyway

July 24, 2008 by Robin Wauters 1 Comment

So VMware performed below expectations, but how did parent company EMC do the past quarter? Not too shabby, actually. In its Q2 Earnings conference call (see transcript here), the company outlined that it had performed well against the backdrop of a challenging economic environment, although its outlook for the future was less rosy.

In the second quarter, EMC had revenue growth of 18% (to $3.67 billion), a non-GAAP EPS growth of 20%. EMC’s second-quarter net income rose 13% to $377.5 million, or 18 cents per share, from $334.4 million, or 16 cents a share, a year earlier. EMC backed its January forecast of full-year profit of 78 cents per share, excluding items. It said 2008 revenue would exceed $15 billion, up from its previous outlook of $15 billion.

The results sent EMC shares up a few points, and they got a further boost when EMC opened the door to a VMware spinoff, per report by Reuters. EMC CEO Joe Tucci apparently stated in an interview with Reuters that a VMware spinoff is definitely possible, although it likely wouldn’t happen in 2008.

EMC Corporation

VMware

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.

From the press release:

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]