Virtualisation maven VMware beat analyst expectations to record Q2 revenue of $921m, up 37% on the year-ago quarter.
The company highlighted record license performance as the key ingredient, with licence revenues climbing 44% to $465m. Service revenue, including software maintenance and professional services, was also up a healthy amount – rising 30% to $456m.
Net income for the quarter stood at $220m, well up on the $75m VMware recorded this time last year.
"The quarter’s strong performance reflects the continued adoption of virtualization as a key technology for the next era of computing," said Paul Maritz, VMware CEO. "VMware will continue to help customers accelerate towards more efficiency, flexibility and automation with VMware vSphere 5 and the cloud infrastructure suite."
The firm said US revenue rose 35% to $450m while international revenue was up 38% to $471m. This was primarily driven by strong performance in Asia, Mark Peek, chief financial officer, said in a call with Wall Street analysts. He did however voice concern about the worsening economic situation in Europe, adding that the company was worried about the situation across the region.
Despite that the company has still raised guidance for the rest of FY2011. "Third quarter 2011 revenues are expected to be in the range of $915m and $940m, a year-over-year increase of 28% to 32%," said Peek. "For the year, we expect annual revenues to be in the range of $3.65bn and $3.75bn, an increase of 28% to 31% compared to 2010."
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The company recently announced a revamp of its vSphere platform, designed to cope with the transition to cloud computing.
