VMware in premature release of joyful liquidity
Announces preliminary results for Q2 and warns it'll blow its year, in a good way
VMware has admitted its core vSphere business is in long-term decline. This little thing called “cloud” seems likely to make some of its products less relevant in coming years, while Azure Stack and containerisation highlight other weaknesses.
Yet VMware today announced preliminary results for Q2 2018 that suggest it is growing like a weed.
Companies mostly announce preliminary results when holding back bad news would anger shareholders. VMware's got the opposite problem because the Q2 results it has foreshadowed are lovely. The quarter is expected to see revenue of “between $1.894 billion and $1.906 billion, an increase of 11.9 per cent to 12.6 per cent from the second quarter of 2016. License revenue for the second quarter is expected to be between $727 million and $737 million, an increase of 12.9 per cent to 14.4 per cent from the second quarter of 2016.”
As a result, the company has upgraded its outlook for the whole year, suggesting it will bring in $7.830 billion, about ten per cent more than in its last financial year.
The company's not saying what's working for it as yet, but its earnings call is next week and it will reveal all at that time. The Register's virtualization desk expects yet more good news about NSX and VSAN and better results from end-user computing sales.
The company's also announced it will make an offering of senior notes, with some of the proceeds used to buy back $1.0 billion of its own class A shares. $1.23bn will go towards paying back EMC for some promissory notes issued a couple of years back.
In non-financial VMware news, the company's announced that its May 2017 acquisition of Apteligent has borne fruit, and an Apteligent by VMware service is now available. There's also four new reports on offer, to track performance by OS, create detailed lists of endpoints, track the user experience by measuring app load times and another measure the “Impact of App Latency on Engagement”. ®