VMware Profits Up in Q3 2013

VMware reports that its third-quarter was a profitable one, raking in $261 million.

VMware reports that its third-quarter was a profitable one, raking in $261 million. Comparatively, the company increased year-ago profits by $104 million, or 67 percent.

Revenue was up about 14 percent from a year ago, at $1.29 billion, while operating income was $287 million, which was 51 percent better than the year-ago quarter.

During the earnings call on Monday, company officials said that licensing and license renewals were the main profit drivers, especially with Enterprise License Agreements.

"Approximately, 33 percent of total Q3 bookings were ELAs and Q3 was VMware's second highest in quarter renewal rate for ELAs in terms of number of deals renewed," said VMware COO Carl Eschenbach. "In addition, for the fifth consecutive quarter, our vCloud Suite sales exceeded our internal plans. We also saw vSOM or vSphere with Operations Management exceed internal plans once again in the second full quarter on the market."

Another growth area was the company's hybrid cloud business, mainly centered in its VMware Service Provider Program. Eschenbach said that it saw 100 percent growth there year over year, especially when the company officially opened up its vCloud Hybrid Service in the U.S. So far, VMware has opened up three U.S. centers, and announced at VMworld Europe last week the launch of a UK center in the first quarter of 2014.

Meanwhile, the Eschenback noted that end-user computing was one of the weaker areas, with growth in the single digits when comparing quarters year over year.

The earnings release is here. Full earnings reports by quarters for years 2008 to the present are available here.

About the Author

Michael Domingo has held several positions at 1105 Media, and is currently the editor in chief of Visual Studio Magazine.


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