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Monday, Jun 3
Though VMware's (VMW -2.4%) management has declared the cash flow guidance recently provided by...
Though VMware's (VMW -2.4%) management has declared the cash flow guidance recently provided by parent EMC inaccurate (due to differences in accounting), subsequent talks with management "imply that they are not entirely comfortable with Street numbers," says Nomura's Rick Sherlund, following up on his Friday note. Management's remarks suggest op. cash flow growth will match op. income growth - Sherlund had been forecasting the former would grow 15%, and believes the consensus for the latter was 24%. He doesn't know whether the shortfall is due to "high receivables or working capital," or demand issues, but thinks the lack of clarity makes for an "awkward situation." Investors don't seem thrilled either.