VMware dodges recession with solid results

Bucking an industry trend, the virtualisation company VMware has announced financial results for its latest quarter that have not disappointed.

The firm announced today that its revenues in the quarter were $515 million (364 million), an increase of 25 per cent from the fourth quarter of 2007. Net income was up also, and at $111 million it compares favourably against the $78 million reported for the same period last year.

Revenues for the full year 2008 were $1.9 billion, an increase of 42 per cent from 2007. Revenues in the United States grew by 37 per cent, to $988 million, while internationally they grew by 48 per cent to $893 million.

The quarter saw a number of highlights for the firm, including the release of VMware View 3.0, which it called a major advance in virtual desktop computing. VMware also acknowledged that its vCloud Initiative, where it provides a platform for delivering virtual services in the cloud, was paying dividends. A number of reseller deals, including those with BMC software, and partner arrangements with firms such as HP, have also helped to improve its bottom line.

"VMware delivered a solid fourth quarter to cap off a successful 2008. We have been executing well in a difficult economy," said Paul Maritz, president and chief executive officer of VMware.

"Customers continue to make VMware a strategic priority because our solutions used by more than 130,000 customers help reduce capital and operational costs," he added. "VMware is well-prepared for the opportunities and challenges ahead."

VMware expects the trend to continue into the next quarter where it is expecting total revenues to be approaching $475 million.

Click here to read why VMware thinks it is so far ahead of its competitors.