VMware, Inc. (NYSE: VMW),
the global leader in virtualization and cloud infrastructure, today
announced financial results for the fourth quarter and full year of
2014: Quarterly Review - Total
revenues for the fourth quarter were $1.70 billion, an increase of 15%
from the fourth quarter of 2013, or up 16% year over year in constant
currency.
- License revenues
for the fourth quarter were $777 million, an increase of 13% from the
fourth quarter of 2013, or up 16% year over year in constant currency.
- Operating
income for the fourth quarter was $344 million, a decrease of 8% from
the fourth quarter of 2013. Non-GAAP operating income for the fourth
quarter was $567 million, an increase of 7% from the fourth quarter of
2013.
- Net income for the
fourth quarter was $326 million, or $0.75 per diluted share, a decrease
of 2% per diluted share compared to $335 million, or $0.77 per diluted
share, for the fourth quarter of 2013. Non-GAAP net income for the
quarter was $467 million, or $1.08 per diluted share, an increase of 7%
per diluted share compared to $436 million, or $1.01 per diluted share,
for the fourth quarter of 2013. Both GAAP and Non-GAAP results on a
year-over-year basis include the impact of the acquisition of AirWatch,
completed in the first quarter of 2014.
Annual Review - Revenues for 2014 were $6.04 billion, an increase of 16% from 2013.
- Operating
income for 2014 was $1.03 billion, a decrease of 6% from 2013. Non-GAAP
operating income for 2014 was $1.88 billion, an increase of 6% from
2013.
- Net income for 2014
was $886 million, or $2.04 per diluted share, a decrease of 13% compared
to $1.01 billion, or $2.34 per diluted share, for 2013. Non-GAAP net
income for 2014 was $1.54 billion, or $3.56 per diluted share, an
increase of 5% per diluted share compared to $1.46 billion, or $3.37 per
diluted share, for 2013. Both GAAP and Non-GAAP results on a
year-over-year basis include the impact of the acquisition of AirWatch,
completed in the first quarter of 2014.
- Operating
cash flows for 2014 were $2.18 billion, a decrease of 14% from 2013,
and free cash flows for the year were $1.83 billion, a decrease of 17%
from 2013.
- Cash, cash
equivalents and short-term investments were $7.08 billion and unearned
revenues were $4.83 billion as of December 31, 2014.
VMware
also announced that its Board of Directors has authorized the purchase
of up to $1 billion of its Class A common stock through the end of 2017.
Stock will be purchased from time to time, in the open market or
through private transactions, subject to market conditions. VMware now
expects the stock repurchase program to more than offset dilution from
its equity compensation programs in 2015. The new stock repurchase
authorization is in addition to VMware's ongoing $1 billion stock
repurchase program, originally announced August 6, 2014. "Customers
continue to partner with VMware because we offer a new model for IT
designed to rapidly and automatically deliver any app, anywhere, without
sacrificing the need for security, availability and compliance," said
Pat Gelsinger, chief executive officer, VMware. "In 2014, we surpassed
the 6 billion dollar revenue mark for the first time, and in 2015 we're
looking forward to providing our customers with extraordinary value
through the strongest portfolio of products, services and solutions in
our history." "We are very pleased with our Q4 revenue growth of
16% on a constant currency basis and with our 2014 results, which met or
exceeded our revenue and operating margin guidance for the quarter and
the year," said Jonathan Chadwick, chief finance officer and chief
operating officer, VMware. "Our portfolio of new disruptive products and
services is experiencing significant customer momentum and driving
strong growth into 2015. We are pleased to announce an additional $1
billion stock buyback, which reflects the opportunity we see ahead for
VMware." Recent Highlights & Strategic Announcements - AirWatch
by VMware recently hit a landmark 15,000 customers globally, nearly
double its closest competitor, and AirWatch Enterprise Mobility
Management was named a "Leader" or equivalent in key industry analyst
reports this year.
- Continuing
its strong momentum, VMware now has more than 400 customers for VMware
NSX, the network virtualization and security platform for the
software-defined data center.
- With
VMware-operated data centers across parts of North America, Europe and
Asia, VMware announced further global expansion in Australia. In
addition, on January 20, VMware announced new additions to VMware vCloud
Air, including new disaster recovery capabilities, new advanced
networking capabilities, and General Availability of vCloud Air Virtual
Private Cloud OnDemand.
- In
the past quarter, VMware announced three additional qualified EVO:RAIL
partners, NetApp, HP and Hitachi Data Systems, bringing the total
EVO:RAIL partners to nine.
- VMware
announced general availability of new vRealize Cloud Management
solutions, including a significant update to VMware vRealizeTM Suite 6, a
cloud management platform built for the hybrid cloud. These solutions
simplify and automate how IT is managed, helping customers on their
journey to deliver IT as a Service.
- Following
VMworld 2014 and VMworld 2014 Europe, where VMware hosted a combined
total of over 32,000 registered attendees, VMware hosted VMware vForum
customer and partner conferences in six countries across the
Asia-Pacific Region hosting 31,500 attendees.
The company
will host a conference call today at 2:00 p.m. PT/ 5:00 p.m. ET to
review financial results and business outlook. A live web broadcast of
the event will be available on the VMware investor relations website at http://ir.vmware.com.
Slides will accompany the web broadcast. The replay of the webcast and
slides will be available on the website for two months. In addition,
eight quarters of historical data for revenues and unearned revenues,
excluding revenues generated each period by the products and services
contributed to Pivotal Software, Inc. on April 1, 2013 and the products
and services associated with the divestitures that occurred in 2013 will
also be made available at http://ir.vmware.com in conjunction with the conference call.
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