VMware Q3 2014 revenue up 18%, net income dips 26%

VMware today said its revenue rose 18 percent to $1.52 billion in the third quarter of 2014, while net income dropped 26 percent to $194 million.

The Palo Alto, California-based VMware said its operating income for the third quarter dipped 16 percent to $242 million.

Both net income and operating income decreased as a result of AirWatch acquisition, VMware said on Tuesday.

“In every region of the world, customers are making a long-term bet on VMware to help transform their businesses and embrace a new model for IT,” said Pat Gelsinger, CEO of VMware.

In the Asia Pacific region, countries such as Australia, China, New Zealand and India have contributed to the growth of VMware.

VMware CEO Pat Gelsinger

“Customers are looking to VMware for technology choices that liberate them from the constraints of hardware, and which offer a new model for security, optimized for a world of millions of applications,” Gelsinger said.

VMware said its end-user computing including AirWatch grew license bookings over 60 percent in Q3. Within end-user computing its desktop license bookings grew in double digits.

AirWAtch had a strong quarter. AirWatch increased its number one position in market share in enterprise mobile management and security.

At the end of Q3, NSX had over 250 paying customers. VMware said its grew hybrid cloud business over 80 percent.

“We continue to expand our global footprint by announcing in early access program in our first locations in Japan and Germany opening up our first vCloud Air location in New Jersey in collaboration with our partner, Centrelink and announced to early access program for our vCloud government service in the US,” Gelsinger said.

[email protected]