VMWare, Inc. Earnings Cheat Sheet: Beats the Street on Profit Rise

VMWare, Inc. (NYSE:VMW) reported net income above Wall Street’s expectations for the most recent quarter. VMWare, Inc. is a provider of virtual infrastructure software solutions from the desktop to the data center. It works with more than 1,300 technology partners, including leading server, microprocessor, storage, networking and software vendors.

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VMWare Earnings Cheat Sheet for the Second Quarter

Results: Net income for the technical and system software company rose to $220 million (51 cents per share) vs. $74.5 million (18 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 36.7% to $921 million from the year earlier quarter.

Actual vs. Wall St. Expectations: VMW beat the mean analyst estimate of 31 cents per share. It beat the average revenue estimate of $873 million.

Quoting Management: “VMware’s second quarter results were driven by strength across geographies and record enterprise license agreement bookings as a percentage of total bookings,” said Mark Peek, chief financial officer.”Third quarter 2011 revenues are expected to be in the range of $915 and $940 million, a year-over-year increase of 28% to 32%. The third quarter non-GAAP operating margin is expected to decline sequentially by 260 to 360 basis points. For the year, we expect annual revenues to be in the range of $3.65 billion and $3.75 billion, an increase of 28% to 31% compared to 2010.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 40.2%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 47.9% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 60.4% and in the fourth quarter of the last fiscal year, the figure rose more than twofold.

The company beat estimates last quarter after being in line with expectations in the first quarter with net income of 27 cents per share.

Competitors to Watch: Citrix Systems, Inc. (NASDAQ:CTXS), Intl. Business Machines Corp. (NYSE:IBM), Microsoft Corporation (NASDAQ:MSFT), EMC Corporation (NYSE:EMC), Symantec Corporation (NASDAQ:SYMC), Oracle Corporation (NASDAQ:ORCL), Quest Software, Inc. (NASDAQ:QSFT), Hewlett-Packard Company (NYSE:HPQ), Google Inc. (NASDAQ:GOOG), and LogMeIn, Inc. (NASDAQ:LOGM).

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(Source: Xignite Financials)