Feeds

VMware profits drop by half

Results solid, not stellar

Secure remote control for conventional and virtual desktops

VMware made 54 per cent less profit in its third 2009 fiscal quarter than a year ago.

Revenues were $490m, up slightly at four per cent compared to a year ago, but net income fell by more than half, being $38m compared to $83m in 2008's third quarter.

US revenues for its server and data centre virtualisation software in the third quarter declined one per cent, despite strong federal sales, to $246m from the year-ago quarter, while international revenues grew nine per cent to $244m.

The results were affected by the $356m used for the acquisition of SpringSource, bringing in more technology for cloud computing. Looking beyond the net income figure, VMware noted that total deferred revenues were $990m, 27 per cent higher than a year ago. Services revenues, which include software maintenance and professional services, were $250m, an increase of 33 per cent from the third quarter of 2008.

VMware's CFO, Mark Peel, talked of a solid quarter and said: "While the economic environment remains challenging, we... believe that the next two quarters will follow seasonal patterns. We are planning fourth quarter revenues to be between $540 and $560 million, with the first quarter of 2010 down sequentially." He didn't say why.

CEO and president Paul Maritz looked ahead and said: "As our portfolio grows in the fourth quarter with the anticipated release of VMware View 4 for the desktop, we expect customers to increasingly turn to VMware to help them simplify IT." ®

Beginner's guide to SSL certificates

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

Free virtual appliance for wire data analytics
The ExtraHop Discovery Edition is a free virtual appliance will help you to discover the performance of your applications across the network, web, VDI, database, and storage tiers.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.