Feeds

VMware profits drop by half

Results solid, not stellar

Beginner's guide to SSL certificates

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." ®

Security for virtualized datacentres

More from The Register

next story
It's Big, it's Blue... it's simply FABLESS! IBM's chip-free future
Or why the reversal of globalisation ain't gonna 'appen
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
Bitcasa bins $10-a-month Infinite storage offer
Firm cites 'low demand' plus 'abusers'
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
CAGE MATCH: Microsoft, Dell open co-located bit barns in Oz
Whole new species of XaaS spawning in the antipodes
Microsoft and Dell’s cloud in a box: Instant Azure for the data centre
A less painful way to run Microsoft’s private cloud
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.