VMware Inc Beats Q1 Estimates, Looks Forward to Growth in the Mobile Cloud
VMware just reported results for the first quarter of fiscal year 2014. Revenues increased 14% year over year, to $1.4 billion. Excluding sales for divested operations such as the Pivotal cloud computing platform, sales grew 18%. Non-GAAP earnings grew 9%, landing at $0.80 per share.
Analysts were looking for earnings of $0.79 per share on $1.35 billion in revenue, and VMware edged out both estimates.
Excluding Pivotal's results, all three of Vmware's reportable divisions saw sales growing between 16% and 17% year over year. Adjusted operating margins increased from 13.3% to 17.7%.
Unearned revenues in the software maintenance division jumped 21% higher from the year-ago period, and unearned professional services surged 36% higher. Unearned revenues reflect long-term contracts where much of the recorded cash sales will count toward revenues on an amortized, multi-year schedule.
"As the industry shifts from client server computing to the mobile-cloud era, customers are choosing our solutions because we have the most complete vision and offering for navigating this evolving world," said VMware CEO Pat Gelsinger in a prepared statement.
Coming into this report, VMware shares had gained 45% during the last 52 weeks. Share prices increased 0.8% in after-hours trading as investors reacted to the first-quarter report.
The article VMware Inc Beats Q1 Estimates, Looks Forward to Growth in the Mobile Cloud originally appeared on Fool.com.Anders Bylund has no position in any stocks mentioned. The Motley Fool recommends and owns shares of VMware. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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