VMWare Expects a Rocky 2012
— Virtualization leader VMWare, a way into the cloud, is worried about next year. It expects “growing macro uncertainty” to drag down expansion and its Q1 revenue to be up only 18%-22% year-over-year to $1 billion-$1.03 billion, a tad shy of expectations.
Companies are cutting back and Microsoft and Red Hat offer free virtualization while Vware expects to invest and have difficult compares.
Monday it posted better-than-expected Q3 revenue and earnings. Revenues surpassed guidance at $941.9 million, up 32%, and were above consensus in part because of Germany and Asia-Pacific. It’s got a pretty $2.2 billion in unearned revenue.
Non-GAAP earnings were 53 cents a share, passing consensus by four cents, to more than double at $177.5 million.
License revenues came to $444 million and service revenue was $498 million.
The company said Q4 revenues would be between $1.03 billion and $1.06 billion in line with previous guidance.