VMware posts first billion dollar quarter
Revenue hits $1.06 billion in Q4 2011
VMware has posted its first billion dollar quarter, with revenue for the quarter to end of December 2011 hitting $1.06 billion.
Revenue was up 27% year on year, while operating income was up 64% to $214m and net income up 64% to $200m.
For the full financial year, revenue was up 32% to $3.77 billion, with operating income up 72% to $735m and net income reaching $724m, an increase of 103% from 2010.
The strong performance was accredited to growth in service and licence revenue and better profit margins. VMware also launched new virtualisation products for management, automation and enablement of mobile devices in the past twelve months.
VMware CEO Paul Maritz said: "The quarter's strong performance further signals that virtualization is the foundation for simplifying and automating IT. As customers continue to drive significant IT transformation, our task remains in providing solutions that go beyond cost reduction, yielding business and competitive value."
"We are pleased with our record fourth quarter results," said Mark Peek, chief financial officer, VMware. "Our investments over the years have clearly paid off and we will continue to take advantage of long-term opportunities ahead. First quarter 2012 revenues are expected to be in the range of $1.015 and $1.040 billion, an increase of 20% to 23% from the first quarter 2011. Annual 2012 revenues are expected to be in the range of $4.475 and $4.6 billion, an increase of 19% to 22% from 2011, and annual license revenues are expected to grow between 11% and 16%."