IDG News Service - Continuing to ride a wave of enterprise server virtualization, VMware on Monday reported a 46 percent increase in revenue for the third quarter, or US$714 million, up from $456 million in the same quarter a year earlier.
The U.S. led the demand for VMware services and licenses, particularly the federal government, which is ramping up on virtualization, Mark Peek, VMware's chief financial officer, said in a statement.
U.S. revenue grew slightly ahead of revenue gathered from elsewhere in the globe. U.S revenue jumped 47 percent, to $362 million, compared to a 44 percent growth, or $352 million, for the rest of the world.
The revenue was split fairly evenly across licenses -- $343 million, up 43 percent -- and services -- $371 million, up 49 percent.
Net income jumped as well, to $85 million, up from $38 million in the third quarter of 2009. Non-GAAP income was $165 million, up from $95 million last year.
The revenue beat analyst predictions of $698 million for the quarter. Because of that, VMware expects fourth quarter revenue to be between $790 and $810 million, which would be an increase of 30 percent to 33 percent year-on-year.
However, while growth in 2010 looks solid, VMware executives predicted a slightly slower year ahead, at least in terms of growth.
"We expect server shipments to grow more slowly in 2011, relative to 2010," Peek said in a conference call wit
Continuing to ride a wave of enterprise server virtualization, VMware on Monday reported a 46% increase in revenue for the third quarter, or $714 million, up from $456 million in the same quarter a year earlier.
The U.S. led the demand for VMware services and licenses, particularly the federal government, which is ramping up on virtualization, Mark Peek, VMware's chief financial officer, said in a statement.
U.S. revenue grew slightly ahead of revenue gathered from elsewhere in the globe. U.S revenue jumped 47%, to $362 million, compared to a 44% growth, or $352 million, for the rest of the world.
The revenue was split fairly evenly across licenses -- $343 million, up 43% -- and services -- $371 million, up 49%.
Net income jumped as well, to $85 million, up from $38 million in the third quarter of 2009. Non-GAAP income was $165 million, up from $95 million last year.
The revenue beat analyst predictions of $698 million for the quarter. Because of that, VMware expects fourth quarter revenue to be between $790 and $810 million, which would be an increase of 30% to 33% year-on-year.
However, while growth in 2010 looks solid, VMware executives predicted a slightly slower year ahead, at least in terms of growth.
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