VMware Q1 Results Show Real Growth
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VMware (NYSE:VMW) is pushing IT transformation forward, and in so doing is continuing to grow itself.
For the first quarter of fiscal 2011, VMware reported record revenues of $844 million. VMware's Q1 revenues represent a 33 percent year-over-year increase for the virtualization vendor. Net Income for the first quarter was reported at $126 million, up from the $78 million reported for the first quarter of 2010. EPS came in at $0.29 per share, representing 53 percent year-over-year growth.
Moving forward, Mark Peek CFO of VMware provided second quarter guidance for revenues to be in the range of $860 million to $880 million. The second quarter guidance represents growth of between 28 and 31 percent on a year-over-year basis.
VMware is now also ramping up new efforts focused on delivering cloud Platform-as-a-Service (PaaS) and cloud application capabilities.
"Beyond the transformation of infrastructure, we believe there is a comparable modernization and transformation of application development that is beginning," Paul Maritz, CEO of VMware said during the company's earnings call. "This is centered around the new programming frameworks and new data fabrics."
Last week, VMware announced Cloud Foundry, which is an open source PaaS project. Martiz noted the Cloud Foundry will help VMware to support modern programming frameworks as well as providing portability across clouds. Martiz sees VMware as being a key player in the post-PC era that includes smartphones and tablets.
"IT will now have to deliver applications and capabilities to an increasingly heterogeneous world, full of new tablets and smartphones," Martiz said. "To do this in a secure and manageable way presents new challenges and opportunities."
Maritz added that VMware has products in market including the View desktop virtualization product line that will help to enable the post-PC era, with more efforts yet to come.
"We will invest in new capabilities to enable IT to focus on managing people rather than managing physical devices," Martiz said. "Taken together, we believe that these investments position us well for the future, both the nearer- and the longer-term."