Sunday, January 29, 2012

VMware Reports Outstanding Earnings: Quarterly Revenues Reach $1 Billion

=> For Latest Updates, Visit OspreyFlyer.com <=



VMware Reports Outstanding Earnings: Total Revenues Reach $1 Billion


VMware Summary Q4 2011 VMware reported record total revenues and operating income. Net income and earnings per share were the highest ever reported from the core business. Financial position continues liquid with adequate capital. Return on assets has improved in recent quarters and is now 9.55%. "The quarter’s strong performance further signals that virtualization is the foundation for simplifying and automating IT", said CEO Paul Maritz. Q1 2012 total revenues are projected to be flat QoQ at $1.015B to $1.040B. Full year 2012 total revenues are projected +19 to +22% YoY at $4.475B to $4.600B.


VMware Income Statement Q4 2011 VMware reported record total revenues of $1.06 billion, second highest ever net income of $200.43 million, and second highest ever earnings per share of $0.46. From the prior quarter Q3 2011, total revenues were +12.57%, net income +12.89%, and earnings per share +12.20%. From the prior year Q4 2010, these were up an impressive +26.88%, +67.19%, and +64.29%, respectively. Gross margin, operating, and net margins improved to 84.26%, 20.19%, 18.90%, respectively. Cash flow from operations of $1.30 per share is another all-time high.


VMware Balance Sheet Q4 2011 Total assets increased QoQ to a record $8.69 billion. The capital to assets ratio decreased to 54.95%, has decreased 2 consecutive quarters, but is adequate. The current ratio increased to 65.41%. VMware is liquid with adequate capital. Total deferred revenue, current and noncurrent, increased a strong +21.23% and +$474 million to $2.71 billion. Return on assets increased to +9.55%.


VMware Outlook Q1 2012 "First quarter 2012 revenues are expected to be in the range of $1.015 and $1.040 billion, an increase of 20% to 23% from the first quarter 2011. Annual 2012 revenues are expected to be in the range of $4.475 and $4.6 billion, an increase of 19% to 22% from 2011, and annual license revenues are expected to grow between 11% and 16%."


VMware Performance by the Quarters (Charts) VMware Cash Flow per Share and Earnings Per Share Current Earnings per Share of $0.46 are +12.20% QoQ, a whopping +64.29% YoY, and 2nd highest ever. Record Q2 2011 EPS $0.51 was boosted by the $56 million gain on the sale of investment in Terremark Worldwide Inc. Current Cash Flow per Share of $1.30 is an all-time high for the 2nd consecutive quarter.

 


VMware Total Revenues, Operating Income, and Net Income Current Total Revenues of $1.06 billion are +12.57% QoQ, +26.88% YoY, the 9th consecutive quarterly record high, and the first time to exceed $1 billion. Current Operating Income of $214.06 million is an all-time high and the 4th record high in the past 5 quarters. Current Net Income of $200.43 million is +12.89% QoQ, a strong +67.19% YoY, and 2nd highest ever. Record Q2 2011 Net Income of $220.16 million was boosted by the $56 million gain on the sale of investment in Terremark Worldwide Inc.

 


VMware Gross Margin, Operating Margin, and Net Margin Current Gross Margin of 84.26% is a 12-quarter high and has been stable in the 80%-84%. Current Operating Margin of 20.19% is one of the highest on recrod. Current Net Margin of 18.90% is also one of the highest on record.

 


VMware Return on Assets Return on Assets of 9.55% is a multi-year, if not all-time, high. ROA has improved for 7 consecutive quarters. The $56M gain on sale of investment in Terremark Worldwide, Inc. has inflated Net Income and boosted ROA. The only real negative about VMware is the ongoing low ROA for a technology sector company. However, the rebound in the ROA since Q2 2010 (4.48%) is impressive.




VMware Growth Rates YoY Total Revenues Growth YoY of +26.88% is impressive, the 10th consecutive quarter of growth, but below the chart average of 31.46%. Earnings per Share Growth YoY of +64.29% is well above the chart average of 47.83% and the 8th consecutive quarter of growth.

 


VMware Reports Fourth Quarter and Full Year 2011 Results PALO ALTO, Calif., January 23, 2012 — VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today announced financial results for the fourth quarter and full year of 2011. “The quarter’s strong performance further signals that virtualization is the foundation for simplifying and automating IT,” said Paul Maritz, chief executive officer, VMware. “As customers continue to drive significant IT transformation, our task remains in providing solutions that go beyond cost reduction, yielding business and competitive value.” “We are pleased with our record fourth quarter results,” said Mark Peek, chief financial officer, VMware. “Our investments over the years have clearly paid off and we will continue to take advantage of long-term opportunities ahead. First quarter 2012 revenues are expected to be in the range of $1.015 and $1.040 billion, an increase of 20% to 23% from the first quarter 2011. Annual 2012 revenues are expected to be in the range of $4.475 and $4.6 billion, an increase of 19% to 22% from 2011, and annual license revenues are expected to grow between 11% and 16%.”

=> For Additional Detail and Coverage, Visit OspreyFlyer.com <=

Seeking Alpha