VMware has exhibited signs of recovery in its third-quarter financial results after the plummeting economy had a big bite off from its profits and revenues, as the leader in virtualization technology has topped Wall Street’s expectations.
Although the company’s profits for the third quarter dropped by around 54 percent, the virtualization technology vendor has reported that its revenues grew by 4 percent during the quarter ended on September 30th.
Net income for the vendor was $38 million (or $0.09 per share) and dropped significantly from $83million, or $0.21 per share, posted by the company for the same period a year ago.
If one-time items are included, the company has managed to make a profit of $95 million, or $0.24 per share, which is well ahead of $0.20 per share as expected by analysts, according to Thomson Reuters.
Revenues for the company in the third quarter managed to reach $490 million, significantly up from $472 million registered by the company in the third quarter of 2008. Wall street analysts were predicting $474 million in revenues.
The notable performance in the third quarter has presumably prompted VMWare to project a rather glossy fourth quarter ahead, with the company placing revenue targets between $540 and $560 million, ahead of the $523 million it predicted.
Shares of VMWare have been up even after in after hours trading and has reached its highest point since July last year before the economy went pear shaped. Their good results mean that the recession and its competitors have not noticeably affected sales (even through profits are down).
(The Wall Street Journal)