Services Drives Healthy VMware Revenue, Earnings

VMware on Monday proved it can still show virtualization market momentum, reporting healthy revenue and earnings growth for its third fiscal quarter.

Strong sales over all its product lines and geographies, especially in the U.S. Federal government market, as well as increasing renewals, contributed to VMware's growth for the quarter.

VMware reported revenue for its third quarter, which ended September 30, of $714 million, up 46 percent compared to the $490 million it reported for the third quarter of 2009.

The company also reported income of $85 million, or 20 cents per share, compared to $38 million, or 9 cents per share, for the period last year.

The record quarterly revenue comes on strong growth in VMware's vSphere cloud management software, said CFO Mark Peek. "Our customers are looking to VMware to make cloud computing a reality," Peek said. "It is clear that virtualization is the cornerstone to the cloud."


Next: Services, Renewals Revenue Outpacing New Licenses

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