VMware earnings surge 52%; cloud spending soars
VMware Inc.’s VMW +5.42% first-quarter net income rose 52% on strength in license revenue and services, as companies continued to invest heavily in technology for cloud computing.
International revenue made up 54% of total revenue for the period, the highest level for any quarter, and helped VMware post quarterly net income of $191.4 million, or 44 cents a share, up from $126 million, or 29 cents a share, a year earlier. Excluding stock compensation and other impacts, earnings rose to 66 cents a share from 48 cents a year earlier. The consensus of analysts polled by Thomson Reuters projected adjusted earnings of 60 cents a share.
VMware dominates the market for virtualization software, which allows users to run multiple computers’ operations on a single machine, the first step in cloud computing. Customers that had turned to the company for software to virtualize their information systems are now buying software to build applications and run their enterprise…

