Cloud News
Broadcom’s $61B Buy Of ‘Iconic’ VMware: 5 Big Things To Know
Mark Haranas
From what Dell CEO Michael Dell has to say to a ‘go-shop’ provision in the deal allowing VMware to look for other suitors, here are the five biggest things to know about Broadcom’s historic $61 billion move to acquire VMware.
VMware And Broadcom Financial Results
In a unique move, both VMware and Broadcom reported their quarterly earnings financial results Thursday.
Broadcom generated total sales of $8.1 billion for its second fiscal quarter 2022, representing a 23 percent increase in revenue year over year. The $8.1 billion in sales represents a record quarter for the company.
“Consolidated revenue grew 23 percent year over year to a record $8.1 billion, and operating profit increased 30 percent,” said Broadcom CFO Kirsten Spears, in a statement. “We generated $4.2 billion in free cash flow and are expecting free cash flow to remain strong in the third quarter.”
Broadcom said it is expecting third fiscal quarter revenue of $8.4 billion, which would represent an increase of 24 percent compared with third-quarter 2021.
On the VMware front, the company generated $3.09 billion in revenue during its first fiscal quarter, an increase of 3 percent year over year. VMware’s subscription and SaaS revenue for the first quarter was $899 million, an increase of 21 percent compared with the same quarter one year ago.
“We are focused on accelerating growth of our subscription and SaaS portfolio as we provide customers the flexibility and choice they seek,” said VMware CEO Raghu Raghuram in a statement. “In this multi-cloud environment, we are committed to delivering a comprehensive technology platform spanning critical customer requirements for our hundreds of thousands of customers who trust our software as the foundation for their most critical applications.”
Due to VMware’s pending acquisition by Broadcom, VMware said it would not be providing financial guidance for its current second fiscal quarter.
The Takeaway: Both VMware and Broadcom made a statement by reporting their quarterly financial earning results at the exact same time. Unless VMware finds another buyer before July 5, it appears the company is set to become part of Broadcom.
