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VMware Reports Second Quarter 2009 Results

VMware, Inc. (NYSE: VMW), the global leader in virtualization solutions from the desktop through the datacenter to the cloud, today announced financial results for the second quarter 2009:

  • 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.

"In addition to achieving solid financial results in the quarter, we were able to successfully complete the shipment of VMware vSphere(TM) 4, to a good reception from customers," said Paul Maritz, president and chief executive officer, VMware. "vSphere is not only the largest and most ambitious product step we have taken so far, but the release also reflected improvements in most operational aspects of our business. We now look forward to releasing complementary management and desktop virtualization products over the remainder of the year."

"Once again we executed well, driving strong cash flows while continuing to invest in our long term growth opportunities," said Mark Peek, chief financial officer, VMware. "Although we remain cautious about the global economic conditions, we are beginning to get somewhat better visibility into our business and expect third quarter revenues to be between $465 and $480 million and revenues for the full year 2009 to grow one to three percent compared to 2008."

Recent Strategic Announcements and Highlights

  • On May 21, VMware announced the general availability of VMware vSphere(TM) 4 with the support of an extensive partner ecosystem and customers around the globe. In June, VMware vSphere(TM) 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(TM) 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(TM) AppSpeed and VMware vCenter(TM) Chargeback. VMware also announced a major release of VMware vCenter(TM) 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.
Published Thursday, July 23, 2009 6:15 AM by David Marshall
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VMware Performance | VMware Liscense Revenue Tanks In Q2 | Tek-Tools - (Author's Link) - July 27, 2009 7:36 AM
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