VMware Delivers on Earnings (VMW, EMC)
Virtualization leader VMware, Inc. (NYSE: VMW) has managed to deliver on earnings after the close today. Non-GAAP operating income was up 94% to $187 million and earnings were reported as $0.34 EPS on a non-GAAP basis (versus $0.20 a year…
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As far as guidance, it sees license revenues to be flat sequentially and total revenues to increase to a range of $680 and $705 million. For our 2010 annual revenues, the guidance was raised to a 35% to 38% growth range of $2.725 and $2.8 billion. Thomson Reuters has estimates of $671.9 million for the next quarter and has estimates for 2010 at $ 2.71 billion.
VMware’s cash and equivalents came in up 21% from a year ago at $2.8 billion, while its total deferred revenues were up 58% at $1.5 billion. U.S. revenues were up 43% to $334 million and international revenues grew 53% to $340 million. License revenues were up 42% at $324 million; Services revenues were up 54% at $350 million.
Shares closed down 1.25% at $72,42 and the 52-week range is $30.00 to $74.86. The after-hours response has shares up 5.1% at $76.10 on active trading.
Due to the strong ties with former parent (and majority shareholder) EMC Corp. (NYSE: EMC), this has expectations higher for its earnings due tomorrow morning. EMC closed down 1.1% at $20.24 and the stock is up 1.5% at $20.55 in the after-hours session versus a 52-week range of $13.73 to $20.65.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.