VMware Inc. (NYSE: VMW) is showing that the limitless growth of virtualization either does have some limits or that the recession put a real cap on its growth.  The virtualization leader posted $0.20 in non-GAAP EPS on revenues of $465 million.  Thomson Reuters had consensus estimates as $0.19 EPS and under $453 million in revenues.  The company’s net income fell 38% after items to $33 million, or $0.08 EPS, on hi
gher operating expenses.

If you look at the company’s guidance, VMware is stating that it is getting some better visibility: “… 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.” We have estimates pegged at $471.1 million.  The fiscal guidance implies a $1.8988 to $1.936 billion range.  Thomson Reuters is at $1.91 billion, so that is in-line guidance.

Shares closed up about 0.9% to $31.25 in regular trading on the New York Stock Exchange before VMware released its results.  Simply on the “visibility” and the slight beat, we have shares trading up 9% at $34.00 in the after-hours session.

JON C. OGG