VMware sales up 37 per cent on continued demand

Licensing sales and services revenue now each count for about half of VMware's business

VMware's fourth-quarter revenue jumped 37 per cent as businesses increased spending on its virtualization software, the company announced Monday.

Revenue for the three months to Dec. 31 was $US835.6 million, up from $608.2 million in the fourth quarter of 2009 and ahead of analysts' expectations, Thomson Reuters said.

Net income was $120 million, or $0.28 per share, up from $56 million and $0.14 per share in the same quarter last year, VMware said.

License sales were up 39 per cent while services revenue increased 36 per cent. Each now count for about half of VMware's total business.

"VMware clearly benefited in the fourth quarter from both an uptick in spending and the momentum of virtualization as the central technology for modernizing infrastructures," President and CEO Paul Maritz said in a statement.

The company expects revenue for the first quarter -- the one that ends March 31 -- to be between $800 million and $820 million, Chief Financial Officer Mark Peek said in a statement. That would be a jump of 26 per cent to 29 per cent from last year and above the current analyst estimate of $786 million.

Revenue for the full year was $2.9 billion, up 41 per cent from 2009, VMware said. Full-year net income was $357 million, up from $197 million for the year earlier.

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