VMware on MIT List of World's Most Innovative Companies

^v^ ^v^ ^v^

VMware reported QE December 2012 financial results on January 28

VMware Named to MIT Technology Review's 2013 50 Disruptive Companies List Recognizing World's Most Innovative Companies

PALO ALTO, CA -- (Marketwire) -- 02/25/13 -- VMware (NYSE: VMW) has been identified in the field of Computing as one of 2013's 50 Disruptive Companies, MIT Technology Review's annual list of the world's most innovative technology companies. The honorees are nominated by MIT Technology Review's editors, who look for companies that have demonstrated original and valuable technology over the last year, are bringing that technology to market at significant scale, and are clearly influencing their competitors.

"We take great pride in VMware being recognized as an innovator by MIT Technology Review," said Martin Casado, Chief Architect, Networking, VMware. "Our vision is to enable 100 percent automation of the network in the data center, which requires a fully software based approach. By decoupling the network from the underlying physical hardware, network virtualization transforms the operational and economic models of networking. Early adopters of this innovation are dramatically improving the pace of how they operate and serve their customers while significantly lowering costs."

Managing networks and network services to support cloud architectures is complex, time consuming and limits the achievement of full application mobility across clouds. VMware is at the forefront of network virtualization, which enables the dynamic creation of virtual network infrastructure and services that are completely decoupled and independent from the physical network hardware. Many industry leaders, including AT&T, DreamHost, eBay, Fidelity Investments, NTT and Rackspace are using VMware's Nicira Network Virtualization Platform (NVP) to accelerate service delivery from weeks to minutes and reduce complexity and cost dramatically. VMware acquired Nicira in July 2012.

Jason Pontin, publisher and editor in chief of MIT Technology Review, states, "The pace at which technology changes is astounding. This issue celebrates organizations at the forefront, displaying 'disruptive innovation' that will prove to surpass the competition, transform an industry, and change our lives."

VMware and the other honorees will be featured in the March/April edition of MIT Technology Review, available on newsstands worldwide March 5, and online at technologyreview.com today.

About VMware

VMware is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2012 revenues of $4.61 billion, VMware has more than 480,000 customers and 55,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

Press Release: VMware Named to MIT Technology Review’s 2013 50 Disruptive Companies List Recognizing World’s Most Innovative Companies

^v^ ^v^ ^v^

VMware Acquires Virsto

^v^ ^v^ ^v^

VMware reported QE December 2012 financial results on January 28

VMware to Acquire Virsto

PALO ALTO, CA -- (Marketwire) -- 02/11/13 -- VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today announced it has signed a definitive agreement to acquire Virsto® Software, a Sunnyvale, Calif.-based provider of software that optimizes storage performance and utilization in virtual environments.

"VMware is committed to continuing to deliver software innovations that bring significant efficiencies to our customers while simplifying infrastructure and IT," said John Gilmartin, vice president of storage and availability, VMware. "We believe that the acquisition of Virsto will accelerate our development of storage technologies, allowing our customers to greatly improve the efficiency and performance of storage in virtual infrastructure."

Organizations are looking for solutions to address the increasing complexity and cost of storage within virtual and cloud environments, particularly for virtual desktop infrastructures (VDI), large software development and test centers and to support business-critical applications. Virsto provides breakthrough storage optimization technologies that improve storage performance and utilization in these environments. When implemented within a VDI, Virsto can reduce the cost of storage per desktop by as much as 70 percent.

As part of its strategy to deliver the software-defined datacenter, VMware continues to invest and innovate to extend the benefits of virtualization to every domain in the datacenter -- compute, network, storage and the associated security and availability services. VMware has been at the forefront of innovations to storage in virtual environments, and the acquisition of Virsto will expand VMware's storage portfolio, which includes the storage virtualization and management capabilities of VMware vSphere® and the VMware vSphere Storage Appliance™. In addition, EMC Corporation plans to license the Virsto technology, extending the cooperative efforts between the two companies in storage architectures.

"VMware and Virsto share a highly aligned vision to remove complexity and increase efficiencies through virtualization," said Mark Davis, CEO, Virsto. "We are excited to combine forces with VMware to provide customers a more cost-effective, efficient, and agile storage architecture."

Terms of the acquisition were not disclosed. The acquisition is scheduled to close in the first quarter of 2013 subject to customary closing conditions.

About Virsto Virsto Software Corporation changes the economics of storage in virtualized environments by improving utilization, increasing performance, and accelerating VM storage provisioning. Virsto reduces the cost and complexity of storage for VDI, test and development, business-critical application virtualization, cloud computing and other virtualization initiatives. Founded in 2007, Virsto is backed by leading Silicon Valley venture firms. For more information, visit www.virsto.com.

About VMware VMware is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2012 revenues of $4.61 billion, VMware has more than 480,000 customers and 55,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

Press Release: VMware to Acquire Virsto

^v^ ^v^ ^v^

VMware Earnings Slump

^v^ ^v^ ^v^

VMware reported QE December 2012 financial results on January 28

VMware Earnings: Down But Not Out

Analyst and investor expectations were more than what VMware (VMW) could actually achieve. The exceptional post-recession growth has slowed. However, VMware has excellent fundamentals and on the post-earnings price drop it becomes a more reasonably priced stock and an attractive long position. Read more and see charts at Seeking Alpha.

About VMware VMware is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2012 revenues of $4.61 billion, VMware has more than 480,000 customers and 55,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

^v^ ^v^ ^v^

VMware Earnings Review: Performance Sputters Again

VMware reported QE September 2012 financial results on October 23

As noted last quarter, new CEO Pat Gelsinger has a financial performance downtrend to contend with. Gross margin is stable. The performance slowdown is the result of increasing operating expenses and therefore a decreasing operating margin (now 17% down from a peak of just over 20%). Some of this increase in operating expenses is most likely the result of acquisitions. Whether this is a short-term trend or a change in the long-term business model remains to be seen.

QE December 2012 guidance for total revenues is an improved +19% to +22% QoQ and +21% to +22% YoY. However, the 12-quarter YoY average has been +32%. Full 2012 guidance for total revenues is +21% to +22% YoY.

VMware also announced a new CFO, "Jonathan Chadwick, 46, brings deep industry and business leadership experience to VMware. Most recently, he served as corporate vice president of Microsoft and CFO of Skype, following roles as EVP and CFO of McAfee and in a variety of finance leadership positions in over a decade at Cisco Systems. Chadwick will be responsible for leading VMware’s global finance organization and will report to Gelsinger".



Total revenues continue growing solidly year over year and is now +20.7%. However, the trend is downwards and the growth rate has decreased 5 consecutive quarters and is the lowest since the QE 12-31-09 (+18.2%).



This financial performance downtrend has trickled down to net margin and therefore GAAP earnings per share, which has decreased year over year for 2 consecutive quarters, and is now -12.2%. These are the only 2 GAAP EPS YoY decreases since the QE 12-31-09.



“Third quarter results reinforce VMware’s leadership and momentum as cloud emerges as the de facto IT infrastructure standard,” said Pat Gelsinger, chief executive officer, VMware. “Our Software Defined Data Center platform gives customers a clear path to the cloud, and the recently announced VMware vCloud® Suite of virtualized compute, storage, networking and management capabilities demonstrates our unique ability to deliver proven solutions that speed this journey.”

“We delivered a solid quarter despite tough macroeconomic conditions,” said Carl Eschenbach, chief operating officer and co-president, VMware. “The quarter went as expected and we achieved record quarterly results for total revenue and non-GAAP operating income. Fourth quarter revenues are expected to be in the range of $1.26 and $1.29 billion. Annual 2012 revenues are expected to be in the range of $4.572 and $4.602 billion, an increase of 21.4% to 22.2% from 2011. Annual license revenues are expected to grow between 12.8% and 13.8%.”

$VMW $XLK

VMware Earnings Review: Performance Downtrend Evident

VMware reported QE June 2012 financial results on Monday, July 23

New CEO Pat Gelsinger has a financial performance downtrend to contend with. Earnings per share growth year over year has decreased 4 consecutive quarters and is now -14% for this latest QE June 2012. This is the first EPS YoY decrease since the QE 12-31-09. Total revenues growth year over year has decreased 4 consecutive quarters and is now +22%, which is still respectable, but is also the lowest since the QE 12-31-09 (+18%).

Result, QoQ Change, YoY Change
Total Assets: $9.50 billion, +4%, +26%
Total Revenues: $1.12 billion, +6%, +22%
Net Income: $191.75 million, 0%, -13%
Earnings per Share: $0.44, 0%, -14%

QE September 2012 guidance for total revenues is a sub par -1% to +3% QoQ and +18% to +22% YoY. The 10-quarter YoY average has been +34%. Full 2012 guidance for total revenues is +20% to +23% YoY, which was raised at the preliminary financial results call last week.

VMware also announced the acquisition of Nicira, Inc., a pioneer in software-defined networking (SDN) and a leader in network virtualization for open source initiatives.











“The quarter’s strong performance reflects the continued confidence customers have in our solutions,” said Paul Maritz, chief executive officer, VMware. “Our products, amplified by the recent acquisitions, including Nicira, are providing the means for our customers to transform IT as we move into the Cloud Era.”

“We are very pleased with our second quarter results,” said Carl Eschenbach, chief operating officer, VMware. “Despite the tough market conditions, we achieved record quarterly results in total revenue, license revenue, and non-GAAP operating income. Third quarter 2012 revenues are expected to be in the range of $1.11 and $1.15 billion. Annual 2012 revenues are expected to be in the range of $4.540 and $4.635 billion, an increase of 20.5% to 23.0% from 2011. Annual license revenues are expected to grow between 11% and 15%.”

VMware to Acquire Nicira

$VMW $XLK

VMware to Acquire Nicira

^v^ ^v^ ^v^

VMware to Acquire Nicira

Acquisition Expands VMware's Networking Portfolio to Revolutionize Networking for the Cloud and Provide a Full Suite of Capabilities for Any Cloud Environment

PALO ALTO, CA -- (Marketwire) -- 07/23/12 --

VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today announced it has signed a definitive agreement to acquire Nicira, Inc., a pioneer in software-defined networking (SDN) and a leader in network virtualization for open source initiatives.

"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."

VMware will acquire Nicira for approximately $1.05 billion in cash plus approximately $210 million of assumed unvested equity awards. The acquisition is subject to regulatory approvals and other customary closing conditions. The parties expect the acquisition to close during the second half of 2012. The acquisition has been approved by the boards of directors of both VMware and Nicira and the stockholders of Nicira.

The Software-Defined Datacenter - The Foundation of Cloud Computing

For customers whose requirements for managing and provisioning resources extend beyond VMware-only environments, DynamicOps builds on the capabilities of vCloud Director by enabling customers to consume multi-cloud resources (e.g., physical environments, Hyper-V- and Xen-based hypervisors, and Amazon EC2). DynamicOps' policy-based service governor capabilities automate and control how applications and users are provisioned across physical and heterogeneous cloud infrastructure resources.

Managing networks and network services to support cloud architectures is complex, time consuming and limits the achievement of full application mobility across clouds. Nicira is at the forefront of software-defined networking, which enables the dynamic creation of virtual network infrastructure and services that are completely decoupled and independent from the physical network hardware. Many industry leaders, including AT&T, DreamHost, eBay, Fidelity Investments, NTT and Rackspace are using the Nicira Network Virtualization Platform (NVP) to accelerate service delivery from weeks to minutes and dramatically reduce complexity and cost.

"Nicira helps customers dramatically improve business velocity and efficiency by transforming how networking works in the Cloud era," said Steve Mullaney, chief executive officer, Nicira. "I'm thrilled to be joining forces with VMware to help build the software-defined datacenter."

"The value we bring to customers lies in our open approach and the richness of capabilities in network virtualization," said Martin Casado, co-founder and chief technology officer, Nicira. "The combination of Nicira and VMware brings together two pioneering teams, and gives customers the industry leading SDN solution for any cloud environment, on any hypervisor in the enterprise and with Service Providers."

VMware plans to continue to support the open principles and technologies that have made Nicira solutions successful, including the Open vSwitch to connect physical networks and multiple hypervisors and the open extensibility framework to implement business-level policies from any cloud management system. This will allow enterprises and service providers to create the most flexible network topologies that seamlessly span any cloud environment. VMware is committed to maintaining Nicira's openness and bringing additional value and choices to heterogeneous environments and the OpenStack, CloudStack and other cloud related communities.

This acquisition expands VMware's networking portfolio, which includes the VMware vSphere® virtual switching, VMware vCloud® Director™ networking, vShield™ Network and Security software defined services, and the VXLAN protocol to provide a full suite of software-defined networking capabilities and a comprehensive solution lineup for virtualizing the network -- from virtual switching to virtualized layer 3-7 services. This will allow customers to create a pool of network capacity on top of any network infrastructure from which they can easily support tens of thousands of isolated virtual networks with the simplicity and operational ease of creating and managing virtual machines.

About VMware

VMware is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2011 revenues of $3.77 billion, VMware has more than 350,000 customers and 50,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

VMware to Acquire Nicira (NYSE:VMW)

^v^ ^v^ ^v^

VMware Announces CEO Change, Preliminary Q2 Financial Results

^v^ ^v^ ^v^

VMware Announces Changes in Executive Leadership and Preliminary Second Quarter Financial Results

Pat Gelsinger Will Succeed Paul Maritz as Chief Executive Officer; Maritz to Remain on VMware Board of Directors, Joins EMC as Chief Strategist; VMware Announces Record Revenues

PALO ALTO, CA -- (Marketwire) -- 07/17/12 --

VMware today announced that Paul Maritz will be succeeded in the post as Chief Executive Officer of VMware, effective September 1, 2012, by Pat Gelsinger, currently president and chief operating officer, EMC Information Infrastructure Products. Maritz will remain a board member of VMware and will take on a new technology strategist role at EMC. Gelsinger will also be named to VMware's Board of Directors, effective September 1, 2012.

VMware also announced preliminary second quarter results, including record quarterly revenues of approximately $1.123 billion, up 22% over second quarter 2011, versus guidance of $1.100 billion to $1.120 billion, and second quarter non-GAAP operating margins of approximately 32% versus guidance of 30.25% to 31.25%. VMware expects full-year 2012 revenues to be between $4.540 billion and $4.635 billion with non-GAAP operating margins between 30.25% and 31.25%. VMware will discuss further details about its second quarter results and full-year business outlook during its earnings call at 2:00 p.m. Pacific Time on Monday, July 23, 2012.

"VMware has an extraordinary opportunity to help customers transform IT and deliver fundamentally more value to the businesses they serve," commented Paul Maritz, chief executive officer, VMware. "I'm very proud to have been part of an exceptional team of people who have accomplished a great deal over the past four years. VMware has not only transformed current IT practices but is leading in bringing Cloud Computing approaches and infrastructure to enterprises -- on-premise and off."

Maritz added, "Pat, with his deep passion for technology and track record, will complement the strong management team that is already in place at VMware, recently strengthened by the promotion of Carl Eschenbach to Chief Operating Officer. This all means that I can devote my time to developing the strategy of EMC as it relates to big data and a new generation of cloud-oriented applications."

Having spent 30 years at Intel before joining EMC, Pat has unique expertise in the x86 architecture and ecosystem underpinning the vast majority of virtualized environments today, which is broadly recognized as the foundation for Cloud Computing. At Intel, Pat was Senior Vice President and Co-General Manager of Intel's Digital Enterprise Group, the company's largest business group accounting for more than half of Intel's annual revenue. Under Gelsinger's leadership, that group was responsible for Intel's enterprise products including clients (PC's), Server, Embedded, Communications, Visualization and Storage products.

Gelsinger said, "The next generation of software defined-datacenters will be built by combining software with standardized hardware building blocks. VMware is uniquely positioned to be the leader in this endeavor and deliver a whole new level of value to customers and its existing important ecosystem partners. For more than ten years I have interacted with the team at VMware and have developed a deep appreciation for the people and technology of this remarkable company. I am really excited about the mission and becoming part of the team."

"In Pat and Paul, we are fortunate to have two world-class leaders," said Joe Tucci, chairman of VMware's Board of Directors. "The strong teams that we now have in place at VMware and EMC allow me to ask Pat and Paul to take on two of the defining challenges and opportunities of the new, unfolding IT era: Cloud Infrastructure and big data. They have unique backgrounds and skills, and I look forward to continuing to work with both of them."

Tucci continued, "I want to personally thank and congratulate Paul for all he's accomplished over the past four years helping transform VMware from a technology leader in virtualization to an industry leader in Cloud Computing, and I'm excited that he'll now be working full time on these new opportunities."

About VMware VMware (NYSE: VMW) is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2011 revenues of $3.77 billion, VMware has more than 350,000 customers and 50,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

Source: VMware, Inc.

^v^ ^v^ ^v^

VMware to Acquire DynamicOps, Inc.

^v^ ^v^ ^v^

VMware to Acquire DynamicOps, Inc.

Customers Standardized on VMware Cloud Solutions Can Now Extend to Additional Virtual, Physical and Multi-Cloud Environments

PALO ALTO, CA -- (Marketwire) -- 07/02/12 --

VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today announced that it has signed a definitive agreement to acquire DynamicOps, Inc., a provider of cloud automation solutions that enable provisioning and management of IT services across heterogeneous environments -- VMware-based private and public clouds, physical infrastructures, multiple hypervisors and Amazon Web Services. Terms of the acquisition were not announced. The acquisition is scheduled to close in Q3 2012 subject to customary closing conditions.

"As IT organizations evolve from builders to brokers of services many seek to provide access to diverse cloud resources in a controlled, managed fashion," said Ramin Sayar, vice president and general manager, Virtualization and Cloud Management, VMware. "DynamicOps' multi-cloud and multi-platform capabilities help to strengthen VMware's position as the infrastructure and management vendor of choice for cloud computing."

VMware believes that customers will benefit most by a standardized architecture, but will build solutions that make it easy for customers to choose the model that best works for their needs, including heterogeneous environments/management. Customers that have standardized their private and public clouds on VMware vSphere® can continue to rely on VMware vCloud Director™ to enable aggregation and management of virtual and cloud resources.

For customers whose requirements for managing and provisioning resources extend beyond VMware-only environments, DynamicOps builds on the capabilities of vCloud Director by enabling customers to consume multi-cloud resources (e.g., physical environments, Hyper-V- and Xen-based hypervisors, and Amazon EC2). DynamicOps' policy-based service governor capabilities automate and control how applications and users are provisioned across physical and heterogeneous cloud infrastructure resources.

"VMware and DynamicOps share a common vision for dramatically simplifying the management and provisioning of IT resources in the Cloud era," said Rich Krueger, CEO, DynamicOps. "I'm excited about DynamicOps joining VMware, and expect our customers to benefit from increased investment and support in the solutions they rely on to optimize their delivery of IT-as-a-service."

DynamicOps, Inc. originated as a spinoff of Credit Suisse's IT unit.

VMware to Acquire DynamicOps, Inc. (NYSE:VMW)

^v^ ^v^ ^v^

VMware Earnings Dip, Growth Slows

VMware reported Q1 2012 financial results on Wednesday, April 18.

I'm mildly concerned with VMware's Q1 2012 financial results. This is the first quarter that total revenues, net income, and earnings per share dipped QoQ since the QE June 2009. Total revenues had increased every quarter since, until now. Deferred revenues growth slowed considerably. Granted, Q1 is not a strong quarter for VMware on the annual cycle and the revenues dip was small (-0.48%), but the streak is broken. I'm probably being too tough. CFO Mark Peek even raised the annual 2012 revenues guidance.

VMW is doing very well, but I'm starting to see a slowdown in growth for YoY total revenues, net income, and earnings per share. Current performance is good, the margins held, and an acceleration may occur later in 2012. Having been a VMW bull for a few years, I'm just not as gung-ho after this report. That doesn't mean I wouldn't trade VMW for an earnings pop in the future and probably will. CEO Paul Maritz no doubt has some record financial performance on deck later in 2012.

I missed my GAAP earnings per share estimate of $0.51 to $0.56. Actual was $0.44 EPS. This was mostly attributable to the unexpected dip in total revenues and an increase in income taxes. In the past I was underestimating GAAP EPS. So maybe my overestimation is some of the reason for my aforementioned concern.

VMware Income Statement Q1 2012 VMware reported total revenues of $1.06 billion, net income of $191 million, and earnings per share of $0.44. From the prior quarter Q4 2011, these were -0.48%, -4.49%, and -4.35%. From the prior year Q1 2011, these were +25.06%, +52.16%, and +51.72%, respectively. Gross margin, operating, and net margins were stable at 83.80%, 20.58%, 18.14%, respectively. Cash flow from operations of $1.33 per share is another all-time high. The operating expense ratio 63% is below the historical average.

VMware Balance Sheet Q1 2012 Total assets increased to a record $9.13 billion. The capital ratio increased to 56.94%. The current ratio increased to 67.23%. VMware is liquid with adequate capital. Total deferred revenue, current and noncurrent, increased +3.68% QoQ, the smallest increase since the QE September 2010. Return on assets increased to +9.82%.

VMware Outlook Q2 2012 "Second quarter 2012 revenues are expected to be in the range of $1.10 and $1.12 billion. Annual 2012 revenues are expected to be in the range of $4.525 and $4.625 billion, an increase of 20% to 23% from 2011, and annual license revenues are expected to grow between 12% and 16%."









VMware announced a management team change on April 11, 2012: * Carl Eschenbach has been promoted to Chief Operating Officer and Co-President. Eschenbach previously served as VMware's Co-President, Customer Operations. * Raghu Raghuram has been promoted to Executive Vice President of Cloud Infrastructure and Management. Raghuram previously served as VMware's General Manager and Senior Vice President. * Mark Peek, VMware's Chief Financial Officer and Co-President, Business Operations, has decided to take a new opportunity as Chief Financial Officer of Workday, where he currently serves as a member of their Board of Directors. Peek will stay with VMware until June 1, 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 <=