VMware posts 22% increase in revenue to $1.29 billion in fourth quarter

Infotech Lead America: VMware has posted 22 percent increase in fourth quarter revenue to $1.29 billion.

The global virtualization and cloud infrastructure provider’s full year revenue also increased 22 percent to $4.61 billion.

Operating income increased 18 percent to $253 million for the fourth quarter.

Net income for the fourth quarter increased marginally to $206 million from $200 million.

Fourth quarter Non-GAAP diluted EPS was $0.81, an increase of 30.6 percent from the fourth quarter of 2011.

Operating income for 2012 was $872 million, an increase of 19 percent from 2011.

Net income for 2012 was $746 million compared to $724 million.

U.S. revenues for 2012 grew 22 percent to $2.23 billion from 2011. International revenues grew 22 percent to $2.38 billion from 2011.

License revenues for 2012 were $2.09 billion, an increase of 13 percent from 2011. Service revenues, which include software maintenance and professional services, were $2.52 billion for 2012, an increase of 31 percent from 2011.

VMWare said its annual revenues in 2013 are expected to be in the range of $5.230 billion to $5.350 billion, an increase of approximately 14 to 16 percent from 2012, and annual license revenues are expected to grow between 8 and 11 percent.

First quarter 2013 total revenues are expected to be in the range of $1.170 billion to $1.190 billion, an increase of approximately 11 to 13 percent from the first quarter 2012.

“2012 was a strong year for VMware, with solid Q4 results despite a tough economic environment,” said Pat Gelsinger, chief executive officer, VMware. “We see a tremendous market opportunity in 2013 and beyond, as we focus on what our customers value most: VMware’s role as a pioneer of virtualization technologies that radically simplify IT infrastructure from the data center to the virtual workspace.”

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