VMware Reports Second Quarter 2015 Financial Results 

PALO ALTO, Calif., July 22 -- VMware, Inc., a leader in cloud infrastructure and business mobility, today announced financial results for the second quarter of 2015:

• GAAP total revenues for the second quarter were $1.52 billion, an increase of 4% from the second quarter of 2014, or up 8% year-over-year in constant currency. GAAP revenues were reduced by the amount of a settlement with the Department of Justice ("DOJ") and the General Service Administration ("GSA") for $75.5 million, which was entered into and paid in cash in Q2.

• Non-GAAP total revenues for the second quarter were $1.60 billion, an increase of 10% from the second quarter of 2014, or up 13% year-over-year in constant currency.

• License revenues for the second quarter were $638 million, an increase of 4% from the second quarter of 2014, or up 9% year-over-year in constant currency.

• GAAP net income for the second quarter was $172 million, or $0.40 per diluted share, up 5% per diluted share compared to $167 million, or $0.38 per diluted share, for the second quarter of 2014. Non-GAAP net income for the quarter was $396 million, or $0.93 per diluted share, up 15% per diluted share compared to $351 million, or $0.81 per diluted share, for the second quarter of 2014.

• GAAP operating income for the second quarter was $206 million, an increase of 3% from the second quarter of 2014. Non-GAAP operating income for the second quarter was $479 million, an increase of 12% from the second quarter of 2014.

• Operating cash flows for the second quarter were $316 million. Free cash flows for the quarter were $238 million. Both figures were negatively impacted by the $75.5 million paid in connection with the GSA settlement in Q2.

• Cash, cash equivalents and short-term investments were $7.00 billion, and unearned revenues were $4.81 billion as of June 30, 2015.

• Non-GAAP total revenues plus sequential change in total unearned revenues were flat year-over-year, and grew 5% year-over-year when adjusted for constant currency.

• License revenues plus sequential change in unearned license revenues increased 3% year-over-year, and grew 9% year-over-year when adjusted for constant currency.

"Our second quarter results are solid, building on our solid start to the year in Q1," said Pat Gelsinger, chief executive officer, VMware. "We experienced strong industry validation from industry analysts, partners and customers throughout the quarter and also unveiled our Business Mobility strategy and key announcements enabling organizations to transform their business processes."

"We're pleased with our Q2 non-GAAP total revenues growth of 13% on a constant currency basis," said Jonathan Chadwick, chief financial officer and chief operating officer, VMware. "We continue to expand our portfolio to deliver new technologies, solutions and transformational opportunities to our customers."

Recent Highlights & Strategic Announcements 

• In June, VMware outlined its Business Mobility strategy highlighting new solutions, services and partnerships to enable organizations to transform their business processes. New announcements included:
  • The industry's first identity-as-a-service offering integrated with a leading, enterprise-class mobility management and security platform;
  • Further commitment to Apple devices and the iOS platform, with new application configuration templates and vertical solutions; and
  • 15 new ISV partners, including DocuSign, Dropbox and MicroStrategy, announced support for the ACE program, which provides a simplified approach to developing secure mobile applications.

• In partnership with Telstra, VMware announced the general availability of a new VMware-operated location in Australia, which provides customers with a local Asia Pacific hybrid cloud service that helps address local compliance and data locality needs.

• Intel Security and VMware announced an integrated solution, based on the VMware NSX network virtualization platform, to provide Intelligent Intrusion Prevention services for the protection of east-west traffic within the data center.

• VMware unveiled two new technology previews designed to streamline cloud native application development and deployment. VMware AppCatalyst delivers an API-driven environment to developer laptops and Project Bonneville will enable seamless integration of Docker Containers onto VMware vSphere.

• In the second quarter, VMware received further recognition from leading industry analysts.
  • Gartner recognized AirWatch by VMware as a Leader with the highest Ability to Execute, in its June 2015 Magic Quadrant for Enterprise Mobility Management Suites, and VMware as a Visionary in their May 2015 Magic Quadrant for Data Center Networking and in their Magic Quadrant for Cloud Infrastructure as a Service, Worldwide.
  • For the sixth year in a row, Gartner has placed VMware as a leader in its July 2015 Magic Quadrant for x86 Server Virtualization Infrastructure, with both the highest Ability to Execute and highest Completeness of Vision.
  • IDC recognized VMware in a number of reports including positioning VMware as a leader in their 2015 MarketScape for worldwide virtual client computing software. IDC also identified VMware as the number one vendor in both market share and revenue in their Cloud Systems Management Software and Datacenter Automation Software vendor share reports for 2014. Finally, AirWatch by VMware was named the number one vendor in IDC's Enterprise Mobility Management vendor share report for 2014.

About VMware 

VMware is a leader in cloud infrastructure and business mobility. Built on VMware's industry-leading virtualization technology, our solutions deliver a brave new model of IT that is fluid, instant and more secure. Customers can innovate faster by rapidly developing, automatically delivering and more safely consuming any application. With 2014 revenues of $6 billion, VMware has more than 500,000 customers and 75,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

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Source: VMware