VMware posts strong quarter, sees upside ahead

The company says second-quarter results indicate "the continued adoption of virtualization," and it projects a strong third quarter too.

VMware today reported second-quarter earnings of $220 million, or 51 cents a share, on revenue of $921 million, up 37 percent from a year ago. Non-GAAP earnings were 55 cents a share. Wall Street was looking for earnings of 47 cents a share on revenue of $873 million.

The company's second-quarter sales were almost evenly split between U.S. ($450 million) and international revenue ($471 million).

In a statement, VMware CEO Paul Maritz said the company's results indicate "the continued adoption of virtualization."

As for the outlook, VMware projected a strong third quarter. The company projected third-quarter revenue of $915 million to $940 million compared to estimates of $898 million. The company did say that non-GAAP operating margins would fall in the third quarter relative to the second.

For 2011, VMware projected that sales will be between $3.65 billion and $3.75 billion. Wall Street was looking for $3.68 billion.

This story was originally posted at ZDNet's Between the Lines.

About the author

    Larry Dignan is editor in chief of ZDNet and editorial director of CNET's TechRepublic. He has covered the technology and financial-services industries since 1995.

     

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