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VMware Posts Strong Q3 Results

VMware has posted strong third quarter financial results, riding high on the viral adoption of virtualisation technology in the US.

The virtualisation services provider informed that its revenue for the third quarter was $714 million, 46 per cent higher than the $456 million it had posted in the same quarter last year.

The company credited the strong financial results to the rise in virtualisation adoption in the US, particularly the Federal government.

The revenue from US was $362 million, 47 per cent higher than what it had posted earlier. Meanwhile, revenue from the rest of the world was $352 million.

According to VMware, licenses contributed $343 million to the total revenue while services accounted for $371 million. The company's net income also rose to $85 million, up from the $38 million it had posted in the third quarter of the previous year.

Mark Peek, chief financial officer, VMware, said in a statement: “VMware's third quarter results were driven by strong demand across products and regions, led by the U.S. Federal sector. For the fourth quarter, we expect total revenues to be within a range of $790 and $810 million, an increase of 30 per cent to 33 per cent from 2009.”