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VMware Reports Fourth Quarter and Full Year 2009 Results
 VMware, Inc., the global leader in virtualization solutions from the desktop through the datacenter to the cloud, today announced financial results for the fourth quarter and full year 2009:
  • Revenues for the fourth quarter were $608 million, an increase of 18% from the fourth quarter of 2008.
  • GAAP operating income for the fourth quarter was $71 million, a decrease of 30% from the fourth quarter of 2008. Non-GAAP operating income for the fourth quarter was $158 million, an increase of 17% from the fourth quarter of 2008.
  • GAAP net income for the fourth quarter was $56 million, or $0.14 per diluted share, compared to $111million, or $0.29 per diluted share, for the fourth quarter of 2008.   Non-GAAP net income for the quarter was $127 million, or $0.31 per diluted share, compared to $142 million, or $0.36 per diluted share, for the fourth quarter of 2008. 
  • GAAP operating cash flows for the fourth quarter were $284 million, an increase of 4% from the fourth quarter of 2008.  Free cash flows for the quarter were $259 million, an increase of 45% from the fourth quarter of 2008.
  • Revenues for the full year 2009 were $2.0 billion, an increase of 8% from 2008.
  • GAAP operating income for the full fiscal year 2009 was $219 million, a decrease of 30% from 2008. Non-GAAP operating income for the year 2009 was $484 million, an increase of 3% from 2008.
  • GAAP net income for the full fiscal year 2009 was $197 million, or $0.49 per diluted share, compared to $290 million, or $0.73 per diluted share, for 2008.   Non-GAAP net income for the year 2009 was $401 million, or $1.00 per diluted share, compared to $416 million, or $1.05 per diluted share, for 2008. 
  • GAAP operating cash flows for the full fiscal year 2009 were $986 million, an increase of 23% and free cash flows for the year were $840 million, an increase of 39%. 
  • Cash was more than $2.4 billion and deferred revenue was $1.3 billion as of December 31, 2009. Since the beginning of 2009, cash increased 35% and deferred revenue increased 52%.

U.S. revenues for 2009 grew 5% to $1.04 billion from 2008.  International revenues grew 10% to $985 million from 2008.

Services revenues, which include software maintenance and professional services, were $304 million for the fourth quarter, an increase of 52% from the fourth quarter of 2008. 

“The quarter’s strong performance, anchored by demand for vSphere , signals that virtualization is a key technology for customers who need to save money today, yet invest in a strategy that is central to the emerging cloud computing model,” said Paul Maritz, president and chief executive officer.  “We believe that VMware is well positioned to help take our customers on this evolutionary path forward, and our strategy is to expand our portfolio to better serve our customers who are looking to remove complexity from IT.”

“We are pleased with our solid fourth quarter results driven by pent up customer demand and our successful upgrade promotion to Enterprise Plus,” said Mark Peek, chief financial officer.  “While the economy is slowly recovering, we have improved near-term visibility as customers move forward with their IT investments.  We are planning first quarter revenues to be in the range of $580 and $600 million, an increase of 23% to 28% from the first quarter 2009.  We expect annual 2010 revenue to be in the range of $2.45 and $2.55 billion, an increase of 21% to 26% from 2009.”

Recent Highlights & Strategic Announcements

  • In October 2009, VMware announced positive momentum for vSphere 4, the industry’s leading virtualization platform, including now more than 800,000 customer downloads since its been on the market in late May, and winning the prestigious Wall Street Journal 2009 Technology Innovation Award for software product of the year.
  • In November 2009, VMware announced the availability of VMware View 4, the industry’s only purpose-built desktop virtualization solution, setting a new quality, cost and scale standard for desktop virtualization environments. 
  • In November 2009, EMC and Cisco, along with VMware, introduced the Virtual Computing Environment coalition to help customers accelerate pervasive virtualization and a transition to private cloud infrastructures.
  • In January 2010, VMware announced that it had entered into an agreement to  acquire Zimbra, a leading vendor of email and collaboration software, from Yahoo! Inc.  Zimbra is a ‘cloud era’ core IT solution that will be a building block in an expanding VMware portfolio of solutions that can be offered as a virtual appliance or by a cloud service provider.

VMware plans to host a conference call today to review its fourth quarter and full year 2009 results and to discuss its financial outlook.  The call is scheduled to begin at 2:00 p.m. PT/ 5:00 p.m. ET and can be accessed via the Web at http://ir.vmware.com/. The Internet will be available live, and a replay will be available following completion of the live broadcast for approximately 30 days. 

Published Monday, January 25, 2010 6:40 PM by David Marshall
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