"VMware delivered a solid fourth quarter to cap off a successful 2008. We have been executing well in a difficult economy," said Paul Maritz, president and chief executive officer of VMware. "Customers continue to make VMware a strategic priority because our solutions - used by more than 130,000 customers - help reduce capital and operational costs."
"In 2008, we made strategic investments in our technology, partnerships and business operations that position us well for 2009 and beyond," continued Maritz. "We are making solid progress on our three key initiatives to build on our virtualization leadership in the datacenter, the cloud and on the desktop. We are executing on our product roadmap, strengthening our ecosystem of partners, and bolstering our management team - both globally and operationally. VMware is well-prepared for the opportunities and challenges ahead."
Annual GAAP Operating Margin of 17%; Non-GAAP Operating Margin of 25%
VMware, Inc. (NYSE:VMW), the global leader in virtualization solutions from the desktop to the datacenter, today announced financial results for the fourth quarter and full year 2008:
-- Revenues for the fourth quarter were $515 million, an increase of 25% from the fourth quarter of 2007.
-- GAAP operating income for the fourth quarter was $102 million, an increase of 34% from the fourth quarter of 2007. Non-GAAP operating income for the fourth quarter was $135 million, an increase of 25% from the fourth quarter of 2007.
-- GAAP net income for the fourth quarter was $111 million, or $0.29 per diluted share, compared to $78 million, or $0.19 per diluted share, for the fourth quarter of 2007. Non-GAAP net income for the quarter was $142 million, or $0.36 per diluted share, compared to $103 million, or $0.26 per diluted share, for the fourth quarter of 2007.
-- Revenues for the full year 2008 were $1.9 billion, an increase of 42% from 2007.
-- GAAP operating income for the full fiscal year 2008 was $313 million, an increase of 33% from 2007. Non-GAAP operating income for the year 2008 was $469 million, an increase of 39% from 2007.
-- GAAP net income for the full fiscal year 2008 was $290 million, or $0.73 per diluted share, compared to $218 million, or $0.61 per diluted share, for 2007. Non-GAAP net income for the year 2008 was $416 million, or $1.05 per diluted share, compared to $295 million, or $0.82 per diluted share, for 2007.
-- Cash was more than $1.8 billion and deferred revenue was $870 million as of December 31, 2008. Since the beginning of 2008, cash increased 50% and deferred revenue increased 57%.
U.S. revenues for 2008 grew 37% to $988 million from 2007. International revenues grew 48% to $893 million from 2007.
License revenues for 2008 grew 30% to $1.2 billion from 2007. Services revenues grew 67% to $703 million from 2007.
