VMware ups outlook amid strong demand

Virtualization software maker turns out a solid second quarter and announces it's raising its earnings outlook for the year.

Larry Dignan

VMware reported strong second-quarter results and raised its revenue outlook as customers continue to use virtualization software to upgrade data centers.

The company on Tuesday reported net income of $75 million, or 18 cents a share, in the second quarter (statement). Non-GAAP earnings were 34 cents a share. Revenue was $674 million, up 48 percent from a year ago. Wall Street was looking for earnings of 32 cents a share on revenue of $656.9 million.

Meanwhile, VMware raised its outlook for 2010 as the company continues to ride an enterprise upgrade cycle. For 2010, VMware projected revenue of $2.72 billion and $2.8 billion, ahead of Wall Street estimates of $2.7 billion.

Read more of "VMware earnings: Strong second quarter, ups outlook amid strong demand" at ZDNet.