VMware walks on the planet

Profit on operations on GAAP in the second quarter reached 187 million dollars that is 85% more than profit for the same period of 2010. Profit on operations on indicators of non-GAAP was 291 million dollars, a year ago this indicator was 56% lower.

Net profit on GAAP for the second quarter reached 220 million dollars, or 0.51 dollars for the ordinary share, in comparison with 75 million dollars, or 0.18 dollars for the stock during the same period of 2010. Net profit on non-GAAP in a quarter amounts 235 million dollars, or 0.55 dollars for the ordinary share, in comparison with 142 million dollars (0.34 dollars for the stock) during the same period of last year.

Cash flows from primary activity for the second quarter made 463 million dollars that is 114% higher than indicators of the same period of 2010. Available funds amounted 443 million dollars that is 91% more in comparison with the second quarter of last year.

Cash flows of the company for the last 12 months made 1.5 billion US dollars that is 46% more, than a year ago. Available funds for the last 12 months amounted 1.6 million dollars (+56% in comparison with the same period of last year).

As of June 30, 2011 money, cash financial assets and short-term investments of the company were 3.7 billion dollars, and the postponed revenue reached 2.1 billion dollars.

Income from transactions in the territory of the USA in the second quarter increased in comparison with the same period of 2010 by 35% to 450 million dollars. Income from transactions grew in comparison with the second quarter 2010 by 38% to 471 million dollars worldwide.

Income from sale of licenses in the second quarter was 2011 465 million dollars that in absolute measures is 44% more, than in the second quarter than 2010, and 40% more in terms of weighted average rate of currencies. Income from rendering services, including a software maintenance and specialized services, in the second quarter was 456 million dollars that is 30% more, than in the same period of 2010.

"Results which VMware achieved in the second quarter were caused by strengthening of our positions in different regions of the world and also the record number of orders of licenses of our products in relation to the total number of orders, - Mark Pik, the chief financial officer of VMware noted. – In the third quarter we predict income at the level of 915 – 940 million dollars that will exceed indicators of the same period of 2010 for 28–32%. In the third quarter we expect profit increase from operations on non-GAAP from 260 to 360 basis points. As for financial results in a year, we predict income at the level of 3.65 – 3.75 billion dollars that is 28-31% more in comparison with 2010".

"High quarter rates of VMware reflect the continuing virtualization distribution as key technology of a new era in IT, - Paul Maritz, the president and the CEO of VMware company said. – We will support further the clients on the way to achievement of bigger efficiency, flexibility and automation by them using platform vSphere® 5 and a solution package for cloud infrastructures".

Key events and strategic statements

• In June, 2011 VMware provided vFabric 5, the integrated platform of applications for virtual and cloud environments. Integrating popular Java framework Spring with the newest services of applications, vFabric 5 will give opportunities for creation, deployment and management of the most modern software products. vFabric 5 entry into the market is expected by the end of summer of 2011.

• In June, 2011 VMware announced cooperation with HP company. This union is directed to development of the finished solutions which will facilitate and will accelerate transition of clients to cloud computing. New solutions of HP VirtualSystem will represent the complex, previously tested IT infrastructure nodes which implementation will allow corporate customers of any level to increase flexibility of the business, to reduce costs and, finally, to open for themselves a way to cloud computing.

• In July, 2011 the VMware company submitted the new VMware vSphere 5 platform and a complete solution package for cloud infrastructures. Containing about 200 new and advanced opportunities, VMware vSphere 5 continues to set standards in the field of virtualization, providing the increased performance and availability of all of applications, critically significant for business, along with control automation by the growing pool of resources of data centers. VMware vShield 5, VMware vCenter Site Recovery Manager 5, and VMware vCloud Director 1.5, products together with VMware vSphere 5 is opened before customers still by big advantages of virtualization of resources due to transfer of production processes in a cloud. It is expected that VMware vSphere 5 will be available already in the third quarter 2011.

• In the second quarter VMware also announced acquisition of Shavlik Technologies, SlideRocket, SocialCast and Digital Fuel companies. Shavlik Technologies provides locally set and solution SaaS for management of infrastructures. With their help representatives of small and medium business can manage more effectively the IT environments, control and protect them. SocialCast is the modern communication framework for corporate clients integrating people, information and corporate applications. SlideRocket develops the innovative solutions for creation of the presentations integrating possibilities of cloud computing, platforms of joint work, social media and mobile calculations. Digital Fuel allows corporate customers to manage more effectively influence of IT environments on business, increasing transparency of expenses on IT and integrating financial information into process of acceptance of IT solutions that will allow to make objective assessment and to create detailed reports on project deliverables.