As virtualization and cloud computing trends continue to see growth, VMWare (NYSE:VMW) has also seen growth.
For its fourth quarter, VMWare reported net income of $198 million, or 46 cents per share, up from 31 cents in the same quarter a year ago. Revenue was $836 million, a 37 percent increase. Wall Street had been expecting earnings of 44 cents per share on revenue of $803.8 million. (Statement)
For its fiscal year, the company reported net income of $639 million, or $1.51 per share, a 51 percent jump from the $1 per share reported for fiscal 2009. Revenue was $2.9 billion, up 41 percent from the previous year. Wall Street had been expecting earnings of $1.49 on revenue of $2.82 billion for the year.
In a statement, President and CEO Paul Maritz said:
VMware clearly benefited in the fourth quarter from both an uptick in spending and the momentum of virtualization as the central technology for modernizing infrastructures. Our task remains to help our customers evolve to the enterprise hybrid cloud by delivering solutions that increase efficiency while improving business agility.
Looking ahead, the company said it expects first quarter revenue to be in the range of $800 million to $820 million, a 26 percent to 29 percent increase over the year-ago quarter. For fiscal 2011, the company expects revenue between $3.45 billion to $3.55 billion, a 21-24 percent jump.
License revenues for 2010 came in at $1.4 billion, up 36 percent from last year, while service revenues, which include software maintenance and professional services, came in at $1.5 billion, a 46 percent increase. The company said it expects annual license revenue to grow between 14 percent and 19 percent for 2011.
U.S. revenues for 2010 grew 40 percent to $1.5 billion; International revenue was up 43 percent to $1.4 billion.
Shares of VMWare were down more than 3 percent in regular trading, closing at $87.73. Shares were on the upswing in after-hours trading.