Virtualisation
supplier VMware has become the latest IT vendor to voice cautious
optimism about the economic recovery as more small scale projects
get clearance.
Despite the
comparatively upbeat nature of VMware’s third quarter
teleconference with analysts last night, there was no masking the
impact the recession has had on its bottom line with profits
falling 54% year-on-year to $38m.
Sales for the
period grew 4% to $490m including $240m from license revenues, down
15% on a year ago and $249m from professional services, up 33%. The
software maintenance portion of services revenues was $213m, up
44%.
“The economic
climate has improved and there are definitely swallows in the sky
but we should remain cautious, it’s too early to declare that
summer has returned in full,” said VMware chief executive Paul
Maritz.
Enterprise License
Agreements were approximately 15% of total Q3 bookings, similar to
last year as large scale projects struggled to get sign off.
On a geographic
basis, the US Federal market and Asia Pacific were strong but EMEA
was seasonally weak.
VMware expects
revenues of $540m to $560m in Q4 and would not provide more
guidance beyond Q1 next year save to say it expects turnover to
fall around 5% sequentially.
This article first appeared on
Microscope