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.