VMware reported a healthy set of results for Q12015, although it proved to be the slowest revenue growth in seven quarters.
The virtualisation giant pulled in $1.51bn in revenue, an increase of 11% year-over-year, or 13% year at constant currency.
Net income fell by 1% to $196m, or 45 cents per share, from $199m, or 46 cents per share in 2014. Excluding items, the company earned 86 cents per share, topping analyst’s expectations of 84 cents on revenue of $1.5bn. VMware pointed out that the acquiring of AirWatch, completed in the first quarter of 2014, had an impact on income.
Like all US companies with strong global sales, VMware is feeling the heat of the currency market. The dollar continues to surge against virtually all other currencies, impacting top-line growth.
Despite tough trading conditions, VM execs were happy with the results. "We're pleased with our Q1 revenue growth of 13% on a constant currency basis," said Jonathan Chadwick, chief financial officer and chief operating officer, VMware. "We executed well in the first quarter and continued to broaden our portfolio with a range of products that will drive our growth in the future."
"We started 2015 with solid Q1 results and one of the most significant product launches in our history, with the announcement of the industry's first unified platform for the hybrid cloud," Pat Gelsinger, chief executive officer, added.