VMware Disappoints Now & Ahead (VMW)
We just got earnings out of virtualization leader VMware, Inc. (NYSE: VMW). The company posted $0.23 non-GAAP EPS and a 43% yr/yr revenue gain to $456 million in revenues. First Call had estimates pegged at $0.23 EPS on $458.6 million…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
We just got earnings out of virtualization leader VMware, Inc. (NYSE: VMW). The company posted $0.23 non-GAAP EPS and a 43% yr/yr revenue gain to $456 million in revenues. First Call had estimates pegged at $0.23 EPS on $458.6 million in revenues.
Third quarter 2008 revenues are targeted to be within a range of $462to $468 million, but estimates for Q3-2008 are $0.25 EPS on $497.3million. It said that 2008 revenues are targeted to grow approximately42% to 45% compared to 2007, which implies $1.9 Billion at themid-point of its expectations. Estimates for fiscal December-2008 are$1.02 EPS on $1.96 Billion in revenues. Cash exceeded $1.5 billion anddeferred revenue was $721 million as of June 30.
Shares closed up 2.79% at $37.97, and the after-hours reaction hasshares down all the way to $33.50 or so. If this holds it will markits lows since coming public. This doesn’t look strong enough for anindustry leader and now you have to wonder if some of thosevirtualization multi-billion industrywide estimates for years 2010 andbeyond will have to come down or not.
Jon C. Ogg
July 22, 2008
Contact [email protected] for any questions or corrections.
Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.