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Strong growth in sales of all products across all geographies helped propel VMware to a strong second quarter in terms of revenue and earnings, results which were above initial expectations.
However, while VMware executives said to expect continued growth for the second half of 2010, they cautioned that the rate of that growth will not match what the company saw during the second quarter.
VMware on Tuesday reported revenue of $674 million for its second quarter of 2010, which ended June 30. That was an increase of 48 percent from the second quarter of 2009.
The company also reported earnings of $75 million, or 18 cents per share, during the second quarter. That was up 127 percent compared to the $33 million, or 8 cents per share, it reported for the second quarter of 2009.
"Business was strong across all geographies, business types, and products," said Mark Peek, VMware CFO, during the company's analyst financial conference call.
U.S. revenue for the second quarter was $334 million, an increase of 43 percent compared to the second quarter of 2009. International revenue hit $340 million, up 53 percent over last year.
Both license and services revenue showed strong growth over the second quarter of 2009. VMware reported license revenue of $324 million, up 42 percent over last year. Services revenue, which includes software maintenance and professional services, hit $350 million, up 54 percent.
However, Peek said, VMware does not expect such strong services revenue growth going forward. "Don't expect big increases in services revenue as we continue to increase our dependence on our partners," he said.
VMware added 850 people during the quarter, half of which came from acquisitions, Peek said. Current headcount is about 8,200 people, up 1,100 people from the beginning of the year. Peek said VMware expects to continue to add personnel at the same pace through the second half of the year.
VMware COO Tod Nielsen said VMware also saw a strong growth in its customer base. By the end of the first half of 2010, VMware had over 190,000 customers worldwide compared to about 170,000 at the start of the year.
Next: Looking Forward At Virtual Desktops, Cloud Security, And Finances
