VMware has announced financial results for the second quarter of 2014, with revenues at $1,46-billion – an increase of 17% from the second quarter of 2013.
Excluding revenues attributable to Pivotal and all divestitures that occurred in 2013, revenues for the second quarter increased 18% from the second quarter of 2013.
Operating income for the second quarter was $200-million, a decrease of 26% from the second quarter of 2013, reflecting the impact of the AirWatch acquisition. Non-GAAP operating income for the second quarter was $428-million, an increase of 3% from the second quarter of 2013, also reflecting the impact of the AirWatch acquisition.
Net income for the second quarter was $167-million, or $0.38 per diluted share, down 32% per diluted share compared to $245-million, or $0.57 per diluted share, for the second quarter of 2013. Non-GAAP net income for the quarter was $351-million, or $0.81 per diluted share, up 2% per diluted share compared to $343-million, or $0.79 per diluted share, for the second quarter of 2013.
Both GAAP and Non-GAAP results on a year-over-year basis primarily reflect the acquisition of Airwatch, completed in the first quarter of 2014.
Cash, cash equivalents and short-term investments were $6.64-billion, and unearned revenues were $4.39-billion as of June 30, 2014.
“We continue to see strong performance across our business, further evidence that VMware is uniquely positioned as IT transitions from client server computing to the mobile cloud era,” says Pat Gelsinger, CEO of VMware. “Across the board, customers are turning to VMware solutions to help chart an efficient path to the future without sacrificing the vital needs for security, availability and compliance required by all businesses.”
“Our comparable second-quarter revenue grew 18%, reflecting strong customer adoption of our products and services,” says Jonathan Chadwick, chief financial officer, VMware. “We are extremely pleased by the performance of our growth businesses, which made significant progress in accelerating our growth and delivering against our long-term strategy.”
Last week, VMware announced the expansion of its hybrid cloud service into Asia-Pacific with two new partnerships in Japan and China. In Japan, VMware announced a joint venture with SoftBank which launches our first vCloud Hybrid Service in Asia. This service is available now as a private beta and will become generally available in Q4 of this year.
In China, the company announced plans with China Telecom for China Telecom to build a world-class hybrid cloud service in Beijing leveraging VMware’s technology. By the end of the year, VMware operated clouds are expected to be available in over 75% of the world’s cloud market. With approximately 4000 service provider partners, a VMware solution will be available in essentially every market on the planet.
In April, VMware announced VMware vCloud Hybrid Service – Disaster Recovery, a new cloud-based disaster recovery (DR) service that provides a continuously available recovery site for VMware virtualised data centres. This service is simple to set up, can be self-managed and is a fraction of the cost and complexity of traditional DR solutions.
VMware and SAP AG announced availability of the SAP HANA platform on VMware vSphere 5.5. By combining the power of SAP HANA with VMware vSphere 5.5, a foundational component of VMware vCloud Suite, customers can innovate and simplify their data centres by achieving faster time-to-value, higher service levels and lower total cost of ownership (TCO).
SAP HANA support of VMware vSphere 5.5’s virtualised environment will help further simplify and streamline data centre operation for customers implementing a data centre virtualisation strategy.
VMware announced VMware Horizon 6, an integrated solution that delivers published applications and desktops on a single platform. Horizon 6 is the industry’s most comprehensive desktop solution, with centralised management of any type of enterprise application and desktop, including physical desktops and laptops, virtual desktops and applications and employee-owned PCs.
For the fifth consecutive year Gartner named VMware a leader in the 2014 x86 Server Virtualisation Infrastructure Magic Quadrant (MQ). In June, AirWatch by VMware was positioned as a leader in the Enterprise Mobility Management MQ, and for the second year in a row has been placed highest on the ability to execute axis.
In April, VMware appeared in their Data Centre Networking MQ for the first time as a Visionary, with Gartner positioning us furthest on the completeness of vision axis in this space.