VMware profits plummet 54 per cent

Virtualisation champion VMware has announced its year-on-year profits have more than halved in the third quarter of this year.

The profits fell by 54 per cent along with net income dropping by $50 million to $38 million.

There was a light at the end of the tunnel however as its revenues were up by four per cent to $490 million, compared to the same period next year.

Even with the hefty losses Paul Maritz, president and chief executive of VMware, called the results "strong".

Now the company is looking to the future, predicting revenues of between $540 million and $560 million in the fourth quarter with a drop in the following quarter.

Mark Peek, chief financial officer at VMware, said in a statement: "While the economic environment remains challenging, we have improved visibility into our business and believe that the next two quarters will follow seasonal patterns."

Jennifer Scott is a former freelance journalist and currently political reporter for Sky News. She has a varied writing history, having started her career at Dennis Publishing, working in various roles across its business technology titles, including ITPro. Jennifer has specialised in a number of areas over the years and has produced a wealth of content for ITPro, focusing largely on data storage, networking, cloud computing, and telecommunications.

Most recently Jennifer has turned her skills to the political sphere and broadcast journalism, where she has worked for the BBC as a political reporter, before moving to Sky News.