Virtualization company VMware has reported a 54% decline in net income to $38.2m for the third quarter 2009, compared to a net income of $83.28m in the year-ago quarter. Revenue increased 4% to $489.75m. Skip related content
Operating income declined 77% to $23.23m, while diluted EPS fell 57% to $0.09. Operating cash flows declined 18% to $199m. The company said license revenue declined 16% to $240.27m, while services revenue increased 33% to $249.5m. Geographically, US revenue declined 1% to $246m, while international revenue rose 9% to $244m.
During the quarter, VMware acquired enterprise and web application development and management provider SpringSource for approximately $420m.
For the nine-month period, VMware reported a 21% decline in net income to $140.68m compared to a net income of $178.67m a year ago. Revenue increased 4% to $1.41bn.
Mark Peek, chief financial officer at VMware, said: "Our solid third quarter results were driven by strength in the US Federal sector, increased transaction volumes and particularly robust growth in our maintenance renewals. While the economic environment remains challenging, we have improved visibility into our business and believe that the next two quarters will follow seasonal patterns."
Looking ahead, VMware expects fourth quarter revenue between $540m and $560m.
