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VMWare sales up 37% on continued demand

VMware’s fourth-quarter revenue jumped 37% as businesses increased spending on its virtualisation software, the company announced yesterday.

Revenue for the three months to Dec. 31 was US$835.6 million, up from $608.2 million in the fourth quarter of 2009 and ahead of analysts’ expectations, Thomson Reuters said.

Net income was $120 million, or $0.28 per share, up from $56 million and $0.14 per share in the same quarter last year, VMware said.

Licence sales were up 39% while services revenue increased 36%. Each now count for about half of VMware’s total business.

“VMware clearly benefited in the fourth quarter from both an uptick in spending and the momentum of virtualisation as the central technology for modernising infrastructures,” President and CEO Paul Maritz said in a statement.

The company expects revenue for the first quarter — the one that ends March 31 — to be between $800 million and $820 million, Chief Financial Officer Mark Peek said in a statement. That would be a jump of 26% to 29% from last year and above the current analyst estimate of $786 million.

Revenue for the full year was $2.9 billion, up 41% from 2009, VMware said. Full-year net income was $357 million, up from $197 million for the year earlier.

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