VMware Reports Second Quarter 2016 Results 

PALO ALTO, Calif., July 19 -- VMware, Inc. (NYSE: VMW), a leader in cloud infrastructure and business mobility, today announced financial results for the second quarter of 2016:

• GAAP and non-GAAP revenues for the second quarter were $1.69 billion, an increase of 6% from non-GAAP revenues for the second quarter of 2015, and an increase of 11% from GAAP revenues for the second quarter of 2015.
• License revenues for the second quarter were $644 million, an increase of 1% from the second quarter of 2015.
• GAAP net income for the second quarter was $265 million, or $0.62 per diluted share, up 54% per diluted share compared to $172 million, or $0.40 per diluted share, for the second quarter of 2015. Non-GAAP net income for the quarter was $414 million, or $0.97 per diluted share, up 5% per diluted share compared to $396 million, or $0.93 per diluted share, for second quarter of 2015.
• GAAP operating income for the second quarter was $323 million, an increase of 57% from the second quarter of 2015. Non-GAAP operating income for the second quarter was $509 million, an increase of 6% from the second quarter of 2015.
• Operating cash flows for the second quarter were $577 million. Free cash flows for the quarter were $539 million.
• Cash, cash equivalents and short-term investments were $8.67 billion, and unearned revenue was $5.12 billion as of June 30, 2016.
• Total non-GAAP revenues plus sequential change in total unearned revenues grew 10% year-over-year. Total GAAP revenues plus sequential change in total unearned revenues grew 16% year-over-year.
• License revenues plus sequential change in unearned license revenues grew 5% year-over-year.

"Q2 was a continuation of the good start to the year we experienced in Q1, both for results and against our strategic goal of building momentum for our newer growth businesses and in the cloud," said Pat Gelsinger, chief executive officer, VMware. "Customers are turning to VMware to help them run, manage, secure and connect their applications across all clouds and all devices, with unparalleled connectivity, security and visibility."

Zane Rowe, executive vice president and chief financial officer, VMware, said, "This was another good quarter for VMware, and I'm particularly pleased with our financial performance and increasing strength of our balance sheet. We're also looking forward to returning value to our stockholders through the $1.2 billion stock repurchase we announced last quarter."

Recent Highlights & Strategic Announcements 

• Last month, VMware made announcements to further innovate its Business Mobility strategy and product offerings. Announcements included:
  • A new endpoint security solution powered by Tanium. The new solution, VMware TrustPoint, delivers an integrated solution for unified endpoint management and security.
  • Advancements to Workspace ONE, powered by the latest update of VMware AirWatch 8.4 and VMware Identity Manager, that will deliver a new identity-defined managed workspace.
• VMware announced the acquisition of Arkin Net, a leader in software-defined data center security and operations. The acquisition will help customers accelerate adoption of VMware NSX and software-defined data centers.
• In April, VMware teamed with Pivotal to accelerate the deployment of cloud native applications. The new enterprise cloud native solution -- powered by Pivotal Cloud Foundry and VMware Photon Platform -- allows enterprises to run applications and infrastructure at startup speeds.
• Leading analyst firm IDC named VMware as the market share leader in both the worldwide cloud systems management1 and the datacenter automation software markets2  based on 2015 revenues. This is the third consecutive year that VMware has topped both categories.
• VMware AirWatch continues to receive industry recognition from top analyst firms:
  • It was named a leader in the Gartner June 2016 Magic Quadrant for Enterprise Mobility Management (EMM), Suites3 for the sixth consecutive year. It was also positioned the highest for ability to execute for the fourth year in a row and the furthest in completeness of vision this year. This is the first time in the history of the Gartner Magic Quadrant for EMM Suites that a single vendor placed the furthest on both axes.4
  • For the second consecutive year, leading analyst firm IDC ranked VMware AirWatch as the largest EMM vendor in terms of market share for 2015.5

The company will host a conference call today at 2:00 p.m. PT/ 5:00 p.m. ET to review financial results and business outlook. A live web broadcast of the event will be available on the VMware investor relations website at http://ir.vmware.com. Slides will accompany the web broadcast. The replay of the webcast and slides will be available on the website for two months. In addition, six quarters of historical data for revenues which include year over year comparisons will also be made available at http://ir.vmware.com in conjunction with the conference call.

About VMware

VMware is a global 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 2015 revenues of $6.6 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.

Source: VMware