VMware Posts 20 Percent Revenue Gain in 3Q12
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VMware reported third quarter fiscal 2012 earnings late Tuesday, showing continued growth at the virtualization vendor. Revenue was reported at $1.13 Billion, which is a 20 percent year-over-year gain. Net income for the third quarter was reported at $157 million, or $0.36 per diluted share.
Looking ahead, VMware COO and interim CFO Carl Eschenbach provided fourth quarter revenue guidance of between $1.26 Billion and $1.29 Billion, which translates into year-over-year growth of 19 to 20 percent.
While there are multiple drivers to VMware's continued growth, Eschenbach noted during the company's earnings call that feedback on VMware's removal of vRAM pricing limits in the third quarter has been overwhelmingly positive.
"The resulting simplification in our pricing practices has made VMware easier to do business with, and removed a potential obstacle in closing deals," Eschenbach said.