VMware Delivers (VMW)

By Douglas A. McIntyre Updated Jun 20, 9:03AM EDT · Published Oct 21, 4:11PM EDT

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VMware, Inc. (NYSE: VMW) has just posted its Q3 earnings report of $0.24 EPS on a non-GAAP basis on $490 million in revenues. Thomson Reuters had estimates at $0.20 EPS on $473.95 million in revenues. The US revenues were down 1% from a year ago at $246 million, while international revenues rose 9% to $244 million.

The virtualization leading company’s CFO Mark Peek said, “While the economic environment remains challenging, we have improved visibility into our business and believe that the next two quarters will follow seasonal
patterns. We are planning fourth quarter revenues to be between $540 and $560 million, with the first quarter of 2010 down sequentially.” Estimates for the December quarter are $0.25 EPS and $523 million in revenues. The sequential dip will have to be better explained in the company conference call.

Total deferred revenues were $990 million. VMware acquired a small private company called SpringSource in September for $356 million, and that took the cash on hand down to $2.2 billion.

VMware closed up 0.6% at $44.93 today and the 52-week range is $17.25 to $45.57. Shares are trading up around $45.40 in the after-hours session. Things might have been even better, but we had already seen an exponential run-up in this stock.

JON C. OGG
OCTOBER 21, 2009

About the Author Douglas A. McIntyre →

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.