VMWare (NYSE: VMW), the world’s largest virtualization software company, which is controlled by EMC (NYSE: EMC) bought Nicira for $1.05 billion and $210 million of unvested equity awards. The deal will move VMWare quickly into the rapidly expanding cloud computing space.
Management commented:
“VMware has led the server virtualization revolution, and we have the opportunity to do the same in datacenter and cloud networking,” said Paul Maritz, chief executive officer, VMware. “The acquisition of Nicira adds to our portfolio of networking assets and positions VMware to be the industry leader in
software-defined networking.”
The company also announced Q2 earnings. The two pieces of news caused VMW shares to slip after hours.
For the quarter:
— Revenues for the second quarter were $1.12 billion, an increase of 22%
from the second quarter of 2011, and 23% measured in constant
currency.— Operating income for the second quarter was $212 million, an increase
of 13% from the second quarter of 2011. Non-GAAP operating income for
the second quarter was $358 million, an increase of 23% from the
second quarter of 2011.— Net income for the second quarter was $192 million, or $0.44 per
diluted share, compared to $220 million, or $0.51 per diluted share,
for the second quarter of 2011. Non-GAAP net income for the quarter
was $296 million, or $0.68 per diluted share, compared to $235
million, or $0.55 per diluted share, for the second quarter of 2011.
Douglas A. McIntyre
Find a Qualified Financial Advisor (Sponsor)
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
