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Over the years, VMware (NYSE: VMW) has posted a sterling growth record. Of course, the main driver is virtualization technology, which improves the productivity of servers and data centers.
And yes, based on VMware's fourth quarter report, the company had another nice showing. Revenues spiked 25% to $515 million (full-year revenue was $1.9 billion, up 42%). No doubt, for a company of VMware's size, this is enviable.
Moreover, VMware has a highly leveraged operating platform. That is, Q4 GAAP operating income came to $313 million, up 33% over the past year.
However, according to the conference call, VMware is certainly facing some headwinds. After all, the financial industry is a key customer base.
Plus, VMware must deal with competitive pressures. For example, Microsoft (NASDAQ: MSFT) and Citrix (NASDAQ: CTXS) are getting aggressive in the virtualization space.
Actually, VMware is not providing any guidance for 2009. In other words, growth may slow for a couple quarters, which could dampen the stock for awhile. And, so far in today's trading, the stock is down 2% to $21.62.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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Reader Comments (Page 1 of 1)
1-27-2009 @ 3:03PM
BHarrison said...
The $64 BILLION QUESTION is at what point will the economy "bottom out"? . . . And NO ONE knows when that might be. As long as there is NO INTEGRITY in the financial reports of the FIs, the corporations, and the markets/funds, no reasonably prudent person is going to invest in a corrupt, manipulated, and declining corporations, markets/funds.
Isn't it rather amazing how our CORRUPT CONGRESS has such a difficult time passing regulations and providing oversight to INSTILL and to REQUIRE HONESTY and INTEGRITY in the financial reports and operations of our business enterprises. Congress allowed things to become so complexly CORRUPT that they cannot unravel the massive corruptions that are so pervasive in our economic enterprises . . . that is pathetic.
Any Congressman who was to take a strong stand should have the support of minimally 80% - 90% of their constituents; but none of them has had the political courage to do so.