VMware results surpass expectations

published 21 July 2010

VMware has continued in its upward trajectory, posting $674 million (441.5 million) in revenue for the second quarter.

This represented a 48 per cent increase over the same period in 2009 and beat the firm's previous prediction of between $635 and $665 million. It had also risen from the first quarter figure of $634 million.

The virtualisation firm's net profit for the second quarter of 2010 was $75 million - more than double the $33 million from the previous year.

Licence revenues stood at $324 million for the second quarter, up 42 per cent, while services revenues hit $350 million, up 54 per cent.

VMware now expects overall revenues to go up to between $680 and $705 million for the third quarter, said Mark Peek, chief financial officer (CFO) at the company.

The company has now lifted its 2010 annual revenue expectations up to between $2.725 and $2.8 billion, which would represent an increase of 35-38 per cent from 2009.

"We are gratified that customers continue to recognise the value that VMware provides in modernising infrastructures and providing a pragmatic path to cloud computing," added Paul Maritz, president and chief executive (CEO) of VMware.

"As customers continue on this path, they are looking for a strategic partner to help move them forward, and VMware will continue to invest to deliver solutions that enable IT-as-a-service."

Tom Brewster is currently an associate editor at Forbes and an award-winning journalist who covers cyber security, surveillance, and privacy. Starting his career at ITPro as a staff writer and working up to a senior staff writer role, Tom has been covering the tech industry for more than ten years and is considered one of the leading journalists in his specialism.

He is a proud alum of the University of Sheffield where he secured an undergraduate degree in English Literature before undertaking a certification from General Assembly in web development.