VMware Delivers (VMW)

VMware, Inc. (NYSE: VMW) has just posted its Q3 earnings report of $0.24 EPS on a non-GAAP basis on $490 million in revenues.  Thomson Reuters had estimates at $0.20 EPS on $473.95 million in revenues. The US revenues were down 1% from a year ago at $246 million, while international revenues rose 9% to $244 million.

The virtualization leading company’s CFO Mark Peek said, “While the economic environment remains challenging, we have improved visibility into our business and believe that the next two quarters will follow seasonal
patterns.  We are planning fourth quarter revenues to be between $540 and $560 million, with the first quarter of 2010 down sequentially.” Estimates for the December quarter are $0.25 EPS and $523 million in revenues.  The sequential dip will have to be better explained in the company conference call.

Total deferred revenues were $990 million.  VMware acquired a small private company called SpringSource in September for $356 million, and that took the cash on hand down to $2.2 billion.

VMware closed up 0.6% at $44.93 today and the 52-week range is $17.25 to $45.57.  Shares are trading up around $45.40 in the after-hours session. Things might have been even better, but we had already seen an exponential run-up in this stock.

JON C. OGG
OCTOBER 21, 2009