Welcome!

@CloudExpo Authors: Zakia Bouachraoui, Elizabeth White, Liz McMillan, Pat Romanski, Roger Strukhoff

Related Topics: Containers Expo Blog

Containers Expo Blog: Article

VMware Reports Q4 Revenues, Earnings Up 25%

Revenues up 25% to $515 million in the fourth quarter, better than Wall Street was expecting

Virtualization market leader VMware, which is fighting a two-front war against the recession and Microsoft, made 36 cents a share on revenues up 25% to $515 million in the fourth quarter, better than Wall Street thought it would. Estimates only had it pulling down 26 cents (non-GAPP) on revenues of $510 million.

However the company pulled in its horns in projecting its likely results this quarter and said that it thought it would only do about $475 million. Analysts were looking for promises of $495 million.

VMware has never been down sequentially before.

And you can forget any guidance for the year. “The uncertainty in global economic conditions” is such, it said, that it’s “particularly difficult to predict product demand.”

CEO Paul Maritz (pictured below) said the company was being “conservative.”

He said that customers were “indecisive” and preserving cash. He’s expecting spending to be weighed toward the second half. Given that 1Q08 is a hard compare, VMware figures enterprise licenses could be down this quarter by 10%.

On a brighter note, perhaps, 2009 budgets have not been locked down.

Maritz claimed the company had surrendered no major losses to Microsoft and expects to up the ante with a swat of new products and upgrades this year to extend its technical lead. VMware is also doing R&D to include non-x86 platforms such as smaller devices in its embrace.

The company saw revenues up 42% in the whole of last year to $1.9 billion, half what it had hoped for before the bottom fell out of the economy and Microsoft and other wannabes like Citrix started eating into its franchise but meeting the low end of the guidance given in early November. It earned $416 million or $1.05 a share (non-GAAP) which worked out to $290 million, or 73 cents a share, all things considered, compared to $218 million, or 61 cents a share, in 2007.

Its annual operating margin worked out to 17% (GAPP).

The company, which says it’s “executing well in a difficult economy,” figures its well positioned and prepared. It says it’s “executing on our product roadmap, strengthening our ecosystem of partners and bolstering our management team – both globally and operationally.” Apparently 40% of its people have been there less than a year; that of course would include acquisitions.

During the year US revenues grew 37% to $988 million and international revenues grew 48% to $893 million. License revenues were up 30% to $1.2 billion and services revenues up 67% to $703 million.

VMware’s got $1.8 billion in the bank and had $870 million in deferred revenue on the books as of December 31.

China bookings were reportedly strong in the quarter. Maritz said 50% of enterprise agreements had a desktop component like the contract it won against Microsoft from the US Army.

He said VMware is only seeing Microsoft in “hypothetical cases – slideware comparisons in large accounts where Microsoft has a sales presence.” He knows however that they will eventually come to blows. That’s why he’s trying to keep a step ahead of Redmond in technology.

VMware has trimmed expenses to meet reality and has frozen salaries. It’s being highly selective with hiring.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


CloudEXPO Stories
The precious oil is extracted from the seeds of prickly pear cactus plant. After taking out the seeds from the fruits, they are adequately dried and then cold pressed to obtain the oil. Indeed, the prickly seed oil is quite expensive. Well, that is understandable when you consider the fact that the seeds are really tiny and each seed contain only about 5% of oil in it at most, plus the seeds are usually handpicked from the fruits. This means it will take tons of these seeds to produce just one bottle of the oil for commercial purpose. But from its medical properties to its culinary importance, skin lightening, moisturizing, and protection abilities, down to its extraordinary hair care properties, prickly seed oil has got lots of excellent rewards for anyone who pays the price.
The platform combines the strengths of Singtel's extensive, intelligent network capabilities with Microsoft's cloud expertise to create a unique solution that sets new standards for IoT applications," said Mr Diomedes Kastanis, Head of IoT at Singtel. "Our solution provides speed, transparency and flexibility, paving the way for a more pervasive use of IoT to accelerate enterprises' digitalisation efforts. AI-powered intelligent connectivity over Microsoft Azure will be the fastest connected path for IoT innovators to scale globally, and the smartest path to cross-device synergy in an instrumented, connected world.
There are many examples of disruption in consumer space – Uber disrupting the cab industry, Airbnb disrupting the hospitality industry and so on; but have you wondered who is disrupting support and operations? AISERA helps make businesses and customers successful by offering consumer-like user experience for support and operations. We have built the world’s first AI-driven IT / HR / Cloud / Customer Support and Operations solution.
ScaleMP is presenting at CloudEXPO 2019, held June 24-26 in Santa Clara, and we’d love to see you there. At the conference, we’ll demonstrate how ScaleMP is solving one of the most vexing challenges for cloud — memory cost and limit of scale — and how our innovative vSMP MemoryONE solution provides affordable larger server memory for the private and public cloud. Please visit us at Booth No. 519 to connect with our experts and learn more about vSMP MemoryONE and how it is already serving some of the world’s largest data centers. Click here to schedule a meeting with our experts and executives.
Darktrace is the world's leading AI company for cyber security. Created by mathematicians from the University of Cambridge, Darktrace's Enterprise Immune System is the first non-consumer application of machine learning to work at scale, across all network types, from physical, virtualized, and cloud, through to IoT and industrial control systems. Installed as a self-configuring cyber defense platform, Darktrace continuously learns what is ‘normal' for all devices and users, updating its understanding as the environment changes.