|By Maureen O'Gara||
|July 24, 2009 07:30 AM EDT||
VMware picked up a nail in its sneakers in Q1 and was still limping in Q2 but now thinks things might get a little bit better the rest of the year.
It said Wednesday that its earnings in Q2 came to $33 million, or eight cents a share, down 36.5% year-over-year, on flat revenues of $456 million.
Wall Street only had it down for revenues of $453 million. It liked the results and pushed the stock up 8% to $33.81 after-hours.
Blaming the challenging macro economic environment, the virtualization maven said Q2 license revenues declined 20% year-over-year to $228 million while services revenues, which include software maintenance and professional services, were up 32% to $228 million.
Q1 was the first time VMware license revenue ever fell and the company worried that the market's newfound cash-preserving impulses would force its Q2 revenues to be down or at best flat. It came in at the high end of its expectations.
Q2 US revenues declined 3% to $234 million. International revenues grew 3% to $222 million. It confessed that large deals were hard to close.
However, looking into his crystal ball CFO Mark Peek, who clearly didn't have a handle on the situation a quarter ago, raised the company's forecast. "Although we remain cautious about the global economic conditions," he said, "we are beginning to get somewhat better visibility into our business and expect third-quarter revenues to be between $465 million and $480 million [basically flat] and revenues for the full year 2009 to grow 1%-3% compared to 2008."
There are no super-large deals on the Q3 horizon and VMware worries about Gartner's raised prediction of depressed IT spending but it's confident enough to have added 200 people.
On a non-GAAP basis, VMware earned $80 million, or 20 cents a share, in the second quarter, a tad better than the 19 cents expected in the second quarter.
It said its non-GAAP operating income dropped 14% to $96 million but its non-GAAP operating cash flow increased 19% year-over-year to $233 million; and its GAAP operating cash flow increased 62% year-over-year to $243 million. Margins are frazzled.
The company had $2.3 billion in the bank, up 48%, and total deferred revenues of $934 million, up 30%, as of June 30.
The company says it's been able to move from its flagship VMware Infrastructure 3 to vSphere 4 "flawlessly." The new widgetry has been downloaded 250,000 times in the last eight weeks.
VMware is now sending out various management templates, expects to unveil its reworking desktop virtualization VMview with the new protocol soon and will announce a batch of public cloud service providers using vSphere towards the end of August.
VMware CEO Paul Maritz said Goldman Sachs is putting its money on VMware being the leader in desktop virtualization. But it'll take a while to turn the interest seen into significant revenues, he said.
Jun. 24, 2016 02:15 PM EDT Reads: 227
Jun. 24, 2016 01:00 PM EDT Reads: 1,268
Jun. 24, 2016 12:00 PM EDT Reads: 1,513
Jun. 24, 2016 12:00 PM EDT Reads: 668
Jun. 24, 2016 11:15 AM EDT Reads: 535
Jun. 24, 2016 11:00 AM EDT Reads: 901
Jun. 24, 2016 10:30 AM EDT Reads: 808
Jun. 24, 2016 09:45 AM EDT Reads: 1,125
Jun. 24, 2016 09:30 AM EDT Reads: 1,083
Jun. 24, 2016 09:30 AM EDT Reads: 546
Jun. 24, 2016 08:45 AM EDT Reads: 1,173
Jun. 24, 2016 08:45 AM EDT Reads: 1,084
Jun. 24, 2016 08:30 AM EDT Reads: 739
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Jun. 24, 2016 08:15 AM EDT Reads: 1,372
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Jun. 24, 2016 08:15 AM EDT Reads: 1,155
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
Jun. 24, 2016 07:30 AM EDT Reads: 920
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Jun. 24, 2016 07:15 AM EDT Reads: 1,130
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Jun. 23, 2016 11:30 AM EDT Reads: 1,020
industrial company for a multi-year contract initially valued at over $4.0 million. In addition to DataV software, Bsquare will also provide comprehensive systems integration, support and maintenance services. DataV leverages advanced data analytics, predictive reasoning, data-driven diagnostics, and automated orchestration of remediation actions in order to improve asset uptime while reducing service and warranty costs.
Jun. 22, 2016 11:00 AM EDT Reads: 1,323
Vidyo, Inc., has joined the Alliance for Open Media. The Alliance for Open Media is a non-profit organization working to define and develop media technologies that address the need for an open standard for video compression and delivery over the web. As a member of the Alliance, Vidyo will collaborate with industry leaders in pursuit of an open and royalty-free AOMedia Video codec, AV1. Vidyo’s contributions to the organization will bring to bear its long history of expertise in codec technolo...
Jun. 19, 2016 12:45 PM EDT Reads: 1,214