The press release for the second quarter: finance.yahoo.com
VMware’s Quarterly Sales That Exceed Analysts’ Estimates
By Jing Cao and Dina Bass
Bloomberg
Jul 22, 2014 3:17 PM CT
VMware Inc. (VMW), the biggest maker of software that lets computers run different operating systems, said second-quarter sales rose 17 percent as customers renewed multiyear agreements and added new programs to them.
Sales climbed to $1.46 billion from $1.24 billion a year earlier, VMware said in a statement today. Profit excluding certain items was 81 cents a share. Analysts had projected profit of 79 cents and sales of $1.44 billion, according to the average of estimates compiled by Bloomberg.
“Ultimately, I think VMware is in a great situation,” said Daniel Ives, an analyst at FBR Capital Markets & Co., before the results were announced. “It’s about a good second quarter, a healthy outlook for the second half and investors buying into the growth story for 2015.”
VMware customers are re-signing multiyear deals for virtualization software that can help them trim corporate network costs and at the same time are adding on VMware’s tools for managing those setups, said Abhey Lamba, an analyst at Mizuho Securities USA Inc. with a buy rating on the stock, in a note. Palo Alto, California-based VMware is majority-owned by EMC Corp. (EMC)
Net income fell 32 percent to $167 million, or 38 cents a share, from $245 million, or 57 cents, a year earlier, the com-any said.
The shares rose 3.3 percent to $96.03 at the close in New York. The stock has gained 7 percent this year.
To contact the reporter on this story: Dina Bass in Seattle at dbass2@bloomberg.net
To contact the editors responsible for this story: Pui-Wing Tam at ptam13@bloomberg.net Bruce Rule, Niamh Ring
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