Expects Q4 revenues to be in the range of $1.03b to $1.06b, but warns of difficult 2012
Virtualisation and cloud infrastructure provider VMware has reported 2011 third quarter revenues of $942m, up 32%, or 30% at constant currency compared to the same quarter previous year.
The company posted an operating income of $181m for the third quarter, while net income was $178m, or $0.41 per diluted share, compared to $85m, or $0.20 per diluted share, for the third quarter of 2010.
The non-GAAP operating income for the third quarter was $285m, a 40% increase from the third quarter of 2010, while non-GAAP net income for the quarter was $230m, or $0.53 per diluted share, compared to $165m, or $0.39 per diluted share in 2010.
VMware chief financial officer Mark Peek said the company’s third quarter results were driven by growth across all products.
"Demand was especially strong in the Asia Pacific markets and we also experienced the seasonal impact of sales to the US Federal Government," said Peek.
The company’s US revenues grew 22% to $443m in the third quarter, while a growth of 42% to $498m was seen in international revenues compared with the third quarter of 2010.
VMware achieved a 29% year-on-year growth in license revenues for the third quarter of 2011, with revenues reaching $444m, while service revenues, which include software maintenance and professional services, were $498m, an increase of 34% from the third quarter of 2010.
The company expects the fourth quarter revenues to be in the range of $1.03b to $1.06b, a year-over-year increase of 23% to 27%.
However the company did warn that things may not be as rosy over the next year. According to Bloomberg, Peek said the company expects a slow-down in tech spending across the globe as the perilous economic situation begins to affect IT budgets. Peek said the company was ready for a "difficult" and "challenging" 2012.
