financial results

Earnings: VMware’s Q2 2009

July 23, 2009 by Robin Wauters Leave a Comment

VMware today announced financial results for the second quarter 2009 (emphasis ours):

Revenues for the second quarter were $456 million, flat from the second quarter of 2008.
Non-GAAP operating income for the second quarter was $96 million, a decrease of 14% from the second quarter of 2008. GAAP operating income for the second quarter was $38 million, a decrease of 38% from the second quarter of 2008.
Non-GAAP net income for the quarter was $80 million, or $0.20 per diluted share, compared to $92 million, or $0.23 per diluted share, for the second quarter of 2008. GAAP net income for the second quarter was $33 million, or $0.08 per diluted share, compared to $52 million, or $0.13 per diluted share, for the second quarter of 2008.
Cash and cash equivalents were $2.3 billion and total deferred revenues were $934 million as of June 30, 2009. Compared to the same period a year ago, cash increased 48% and deferred revenue increased 30%. Since the beginning of 2009, cash increased 24% and deferred revenue increased 7%.
Non-GAAP operating cash flows for the quarter were $233 million, an increase of 19% from the second quarter of 2008. GAAP operating cash flows were $243 million, an increase of 62% from the second quarter of 2008. For the trailing twelve months ended June 30, 2009, non-GAAP operating cash flows were $910 million and GAAP operating cash flows were $1 billion.

US revenues for the second quarter declined 3% to $234 million from the second quarter of 2008. International revenues for the second quarter grew 3% to $222 million from the second quarter of 2008.

Services revenues, which include software maintenance and professional services, were $228 million, an increase of 32% from the second quarter of 2008. Driven by the challenging macro economic environment, license revenues were $228 million, a decline of 20% from last year.

Recent Strategic Announcements and Highlights:

On May 21, VMware announced the general availability of VMware vSphere 4 with the support of an extensive partner ecosystem and customers around the globe. In June, VMware vSphere 4 was named the Best of Interop 2009 Grand Prize Winner and won the Best of Interop Award in the Cloud Computing and Virtualization category at Interop Las Vegas.
VMware announced record storage performance for VMware vSphere 4, outperforming any virtualization solution on the market and nearly quadrupling its previous record. According to data collected with VMware Capacity Planner, most demanding databases usually require a few thousand IOPS in storage performance. For example, an Oracle database averages 1,280 IOPS for a 4-way Oracle virtual machine. VMware vSphere 4 exceeds this requirement from a single server — and can power up to: 700,000 Microsoft Exchange mailboxes, 273 4-way Oracle databases.
VMware and HP expanded the companies’ strong relationship with VMware signing an OEM agreement to integrate HP Discovery and Dependency Mapping software into the VMware vCenter(TM) suite and working with HP on new datacenter management initiatives. In addition, HP has integrated VMware ThinApp(TM) with the HP Client Automation policy-based management platform. Both of these initiatives will help customers seamlessly and cost-effectively manage their physical and virtual datacenter and desktop initiatives.
On July 13, VMware announced advancements in virtualization management with the general availability of two new products: VMware vCenter AppSpeed and VMware vCenter Chargeback. VMware also announced a major release of VMware vCenter Lab Manager 4. These new management products simplify and automate key IT processes such as application performance monitoring, chargeback, and management of dev/test environments to increase IT productivity in the datacenter — delivering more value to customers as they scale out their virtual environments.

Earnings: Citrix’ Q2 2009

July 23, 2009 by Robin Wauters Leave a Comment

Citrix today reported financial results for the second quarter of fiscal 2009 ended June 30, 2009. In the second quarter of fiscal 2009, Citrix achieved revenue of $393 million, compared to $392 million in the second quarter of fiscal 2008.

Non-GAAP net income in the second quarter of fiscal 2009 was $72 million, or $0.39 per diluted share, compared to $71 million, or $0.38 per diluted share, in the comparable period last year.

Non-GAAP net income excludes the effects of amortization of intangible assets primarily related to business combinations and stock-based compensation expense and the tax effects related to those items. In addition, Non-GAAP net income for the second quarter of 2009 excludes charges recorded in connection with the restructuring program that the company implemented in January 2009, and the tax effects related to those items.

In reviewing the second quarter results for 2009, compared to the second quarter of 2008:

Product license revenue decreased 15 percent;
Revenue from license updates grew 9 percent;
Online services revenue grew 18 percent;
Technical services revenue, which is comprised of consulting, education and technical support, grew 3 percent;
Revenue increased in the America’s region by 3 percent, decreased in the EMEA region by 12 percent, and decreased in the Pacific region by 4 percent;
Deferred revenue totaled $538 million, compared to $476 million on June 30, 2008;
GAAP operating margin was 10 percent for the quarter, and non-GAAP operating margin was 22 percent for the quarter, excluding the effects of amortization of intangible assets primarily related to business combinations, stock-based compensation expense and costs associated with the restructuring program;
Cash flow from operations was $86 million; and
The company repurchased 1.3 million shares at an average price of $30.32.

During the second quarter of 2009, Citrix:

Announced the availability of the Citrix Receiver application on the Apple App Store. The app gives iPhone and iPod touch users access to their Windows applications and documents from anywhere;
Unveiled Citrix NetScaler VPX, a new software-based virtual appliance version of its industry-leading NetScaler MPX hardware appliance product line;
Announced upgrades to Citrix Essentials for XenServer and Hyper-V that adds advanced virtualization management capabilities to two of the industry’s fastest growing virtualization platforms;
Announced nCore technology that allows its high-end Citrix NetScaler appliances to deliver rich Web 2.0 applications and cloud services for more users with no new hardware investments required;
Announced the addition of three new appliance models to its powerful Citrix NetScaler product line – NetScaler MPX 9500, MPX 7500 and MPX 5500;
Announced that LG-Nortel will distribute the Citrix NetScaler product line to enterprise customers in the Korean market; and
Unveiled Citrix Dazzle – a self-service “storefront” for enterprise applications. Dazzle gives corporate employees 24×7 self-service access to a broad array of applications, desktops and content, allowing them to choose exactly what they need, when they need it.

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.

VMware (VMW): Second-Quarter 2008 Results (Updated)

July 22, 2008 by Robin Wauters 2 Comments

VMware reported its second-quarter 2008 results today, with an earnings conference call which was followed closely after the abrupt removal of Diane Greene two weeks ago (see our ‘the week after‘ post too for reference). Don’t feel too bad for her, we’ve just reported on her potential payout, which could be well over $50 million USD.

These are the results that were just announced, in bullet points:

Net income of $52.4 million, or 13 cents a share, compared with $34.2 million, or 10 cents a share, a year earlier.
Revenues for the second quarter were $456 million, an increase of 54% from the second quarter of 2007. Update: this is below Wall Street analysts expectations and estimates, who projected $458,6 to 460 million in revenue – (which the company also projected in April but revised later on). Shares going down.
GAAP operating income for the second quarter was $61 million, compared to $47 million for the same period last year.
Non-GAAP operating income was $112 million, an increase of 52% from the second quarter of 2007.
GAAP net income for the quarter was $52 million, or $0.13 per diluted share, compared to $34 million, or $0.10 per diluted share, for the second quarter of 2007.
Non-GAAP net income for the quarter was $92 million, or $0.23 per diluted share, compared to $52 million, or $0.16 per diluted share, for the second quarter of 2007.
Cash exceeded $1.5 billion and deferred revenue was $721 million as of June 30, 2008.

Second quarter U.S. revenues grew 43% to $240 million from the second quarter of 2007. International revenues grew 68% to $216 million from the second quarter of 2007 driven by strength in Europe and Australia.

Software license revenue grew 39% to $284 million from second quarter of 2007. Service revenues, which include support, subscription and professional services, were $172 million, an increase of 85% from the second quarter of 2007.

As for the financial outlook:

2008 revenues are targeted to grow approximately 42% to 45% compared to 2007. Update: this is rather modest.
Third quarter 2008 revenues are targeted to be within a range of approximately $462 to $468 million. Update: Analysts were projecting revenue of $497.3 million
Third quarter GAAP operating margin is targeted to be between 11% and 13%. This guidance includes stock-based compensation, employer payroll tax on employee stock transactions, amortization of intangible assets and capitalized software development costs which are targeted at 9% of projected revenue.

VMware is hosted a conference call today reviewing its results and discussing its financial outlook. The call was scheduled to begin at 2:00 p.m. PT/ 5:00 p.m. ET.

A noteworthy statement from Paul Maritz in the call was also the fact that VMware intends to make VMware ESXi completely free. The free version, officially called ESXi 3.5, will be available to download starting July 28. Maritz believes this approach to virtualization will help bring more customers into the VMware fold and make virtualization technology ubiquitous.

VMware