VMware's Revenue Rises 42 Percent in 2008
One bright spot in the IT economy appears to be virtualization, with leading provider VMware today announcing that its yearly revenue rose 42 percent in 2008 to $1.9 billion. Fourth quarter revenues were a "solid" $515 million -- up 25 percent over last year.
The company's revenue is up across the board -- U.S. revenues rose in 2008 37 percent to $988 million, international is up 48 percent to $893 million, service revenues rose 67 percent and licensing revenue came up 30 percent to 1.2 billion. The company's "GAAP net income" in the last quarter was $111 million; for 2008 it's $290 million -- up from 218 million in 2007.
The company has $1.8 billion in cash.
"We have been executing well in a difficult economy," Paul Maritz, president and chief executive officer of VMware, said in a prepared statement. "Customers continue to make VMware a strategic priority because our solutions -- used by more than 130,000 customers -- help reduce capital and operational costs...VMware is well-prepared for the opportunities and challenges ahead."
Despite its rosy 2008 earnings, the company did warn investors that it won't provide 2009 estimates due to "uncertainty in global economic conditions."
More information on its results can be found here.