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VMware reports Q1 results

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VMware has announced financial results for fiscal 2018 first quarter.
Revenue for the first quarter was $1,74-billion, an increase of 9% from the first quarter of 2016.
License revenue for the first quarter was $610million, an increase of 7% from the first quarter of 2016.
GAAP net income for the first quarter was $232-million, or $0.56 per diluted share, up 48% per diluted share compared to $161 million, or $0.38 per diluted share, for the first quarter of 2016. Non-GAAP net income for the quarter was $412-million, or $0.99 per diluted share, up 15% per diluted share compared to $366 million, or $0.86 per diluted share, for the first quarter of 2016.
GAAP operating income for the first quarter was $238-million, an increase of 24% from the first quarter of 2016. Non-GAAP operating income for the first quarter was $495-million, an increase of 11% from the first quarter of 2016.
Operating cash flows for the first quarter were $775-million. Free cash flows for the quarter were $726-million.
Cash, cash equivalents and short-term investments were $8,6-billion, and unearned revenue was $5,2-billion as of 5 May 2017.
Total revenue plus sequential change in total unearned revenue grew 10% year-over-year. Excluding the impact on unearned revenue from the sale of vCloud Air, total revenue plus sequential change in total unearned revenue grew 12% year-over-year.
License revenue plus sequential change in unearned license revenue grew 7% year-over-year. Excluding the impact on unearned revenue from the sale of vCloud Air, license revenue plus sequential change in unearned license revenue grew 10% year-over-year.
“We are very pleased with our strong Q1 results. Our strategy is resonating across the regions and driving increased customer interest for our SDDC and cloud portfolio as well as our digital workspace offerings,” says Pat Gelsinger, CEO of VMware. “We also drove momentum across our partner ecosystem, featuring announcements with Dell EMC, Google, Microsoft and Oracle providing customers more complete solutions across clouds, applications and devices.”
Zane Rowe, executive vice-president and chief financial officer of VMware, comments: “Q1 was a great start to the year. We’re pleased with our performance and remain committed to providing value to our customers as they build out their private, public and hybrid cloud strategies.”
In April, VMware introduced a new release of VMware vSAN, featuring native hyperconverged infrastructure (HCI) security, lower total cost of ownership (TCO) and significantly higher all-flash performance. These combined benefits will help customers accelerate their data centre modernisation efforts.
At Mobile World Congress, Pat Gelsinger took part in a keynote with Patrick Adiba, group executive vice-president at Atos. The keynote highlighted how mobile technology enabled by VMware can play a pivotal role in today’s event experience. In addition, VMware unveiled VMware vCloud NFV 2.0, which is designed to modernize and transform network architectures and operations for global communications service providers (CSPs) as they evolve their networks to support 5G and the Internet of Things.
OVH Group, a global hyper-scale cloud provider and vCloud Air Network partner, completed the acquisition of vCloud Air, including data centre and customer operations, customers and an enterprise-ready support team. OVH will continue operations of the acquired service as “vCloud Air powered by OVH” and will leverage VMware’s hybrid cloud technology. In addition, OVH will continue to partner with VMware on go-to-market and customer support.
Throughout the quarter, a number of alliances were expanded that enable VMware’s End-User Computing platforms to manage more devices, applications and endpoints.
At Dell EMC World 2017, VMware unveiled an extended strategic alliance with Pivotal to deliver new “Developer-Ready Infrastructure,” with the integration of VMware’s Software-Defined Data Center and Pivotal Cloud Foundry. The first example of this integration is with NSX.
VMware unveiled VMware Pulse IoT Center, a secure, enterprise grade Internet of Things (IoT) infrastructure management solution that will help customers more efficiently manage, operate, scale and protect their IoT projects from the edge to the cloud.
For the third year in a row, VMware was named one of the 2017 Fortune 100 Best Companies to Work For, according to global research and consulting firm Great Place to Work and Fortune.