VMware profits double

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VMware profits double

Jenny Williams

VMware more than doubled its profits in the fourth quarter of 2010, compared with the same period in 2009, in line with the continued growth of virtualisation technology.

Profits rose from $56m (£36m) in Q4 2009 to $120m (£76m) in the period ending 31 December 2010. Sales for Q4 2010 were $836m (£530m), an increase of 37% compared with the same period in 2009.

Paul Maritz, VMware CEO, said, "VMware clearly benefitted in the fourth quarter from both an uptick in spending and the momentum of virtualisation as the central technology for modernising infrastructures."

Mark Peek, CFO, added, "As we continue to invest to take advantage of the generational shift under way in IT, we do not anticipate expansion of operating margins in 2011."

The company reported that licence sales increased 36% in 2010 compared with a year before, while service sales, including software maintenance, were 46% higher than the comparable 2009 figures.

Sales for the full year were $2.9bn (£1.8bn), an increase of 41% over 2009. Profits for 2010 were $357m (£226m), compared with $197m (£125m) the year before.

VMware results >>


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