VMware Reports Fourth Quarter and Full Year 2011 Results
Annual Revenue Growth of 32% to $3.77 Billion With Fourth Quarter Year-Over-Year Growth of 27% to $1.06 Billion; Annual Operating Margin of 19.5%; Non-GAAP Operating Margin of 31.0%. Fourth Quarter Operating Margin of 20.2%; Non-GAAP Operating Margin of 31.9%; Trailing Twelve Months Operating Cash Flows Growth of 72% to $2.03 Billion; Free Cash Flows Growth of 62% to $1.95 Billion
(firmenpresse) - PALO ALTO, CA -- (Marketwire) -- 01/23/12 -- VMware, Inc. (NYSE: VMW), the global leader
in virtualization and cloud infrastructure, today announced financial
results for the fourth quarter and full year of 2011:
Revenues for the fourth quarter were $1.06 billion, an increase of 27%
from the fourth quarter of 2010, and an increase of 26% measured in
constant currency.
Operating income for the fourth quarter was $214 million, an increase
of 64% from the fourth quarter of 2010. Non-GAAP operating income for the
fourth quarter was $338 million, an increase of 37% from the fourth quarter
of 2010.
Net income for the fourth quarter was $200 million, or $0.46 per
diluted share, compared to $120 million, or $0.28 per diluted share, for
the fourth quarter of 2010. Non-GAAP net income for the quarter was $266
million, or $0.62 per diluted share, compared to $198 million, or $0.46 per
diluted share, for the fourth quarter of 2010.
Operating cash flows for the fourth quarter were $561 million, an
increase of 38% from the fourth quarter of 2010. Free cash flows for the
quarter were $535 million, an increase of 32% from the fourth quarter of
2010.
Revenues for 2011 were $3.77 billion, an increase of 32% from 2010.
Operating income for 2011 was $735 million, an increase of 72% from
2010. Non-GAAP operating income for 2011 was $1.17 billion, an increase of
43% from 2010.
Net income for 2011 was $724 million, or $1.68 per diluted share,
compared to $357 million, or $0.84 per diluted share, for 2010. Non-GAAP
net income for 2011 was $936 million, or $2.17 per diluted share, compared
to $639 million, or $1.51 per diluted share, for 2010.
Operating cash flows for 2011 were $2.03 billion, an increase of 72%
and free cash flows for the year were $1.95 billion, an increase of 62%
from 2010.
Cash, cash equivalents and short-term investments were $4.51 billion
and unearned revenue was $2.71 billion as of December 31, 2011.
U.S. revenues for 2011 grew 26% to $1.82 billion from 2010. International
revenues grew 38% to $1.94 billion from 2010.
License revenues for 2011 were $1.84 billion, an increase of 31% from 2010.
Service revenues, which include software maintenance and professional
services, were $1.93 billion for 2011, an increase of 32% from 2010.
"The quarter's strong performance further signals that virtualization is
the foundation for simplifying and automating IT," said Paul Maritz, chief
executive officer, VMware. "As customers continue to drive significant IT
transformation, our task remains in providing solutions that go beyond cost
reduction, yielding business and competitive value."
"We are pleased with our record fourth quarter results," said Mark Peek,
chief financial officer, VMware. "Our investments over the years have
clearly paid off and we will continue to take advantage of long-term
opportunities ahead. First quarter 2012 revenues are expected to be in the
range of $1.015 and $1.040 billion, an increase of 20% to 23% from the
first quarter 2011. Annual 2012 revenues are expected to be in the range
of $4.475 and $4.6 billion, an increase of 19% to 22% from 2011, and annual
license revenues are expected to grow between 11% and 16%."
In October 2011, VMware unveiled three product suites designed to
simplify and automate IT management. With significant enhancements to
VMware® vCenter Operations™ and the introduction of new VMware®
vFabric Application Management™ and VMware® IT Business Management
suites, VMware will help customers amplify the value of their virtual
environments and achieve the agility and economics of cloud computing.
VMware announced VMware vCenter™ Protect Essentials Plus™, a
complete on-premise management system designed to meet the needs of the
small and midsize businesses (SMBs) and enhancements to its VMware Go
Pro™ service, simplifying IT management for SMBs.
VMware announced VMware® Horizon Mobile, a simple way for IT
departments to securely provision, manage and de-provision a corporate
mobile workspace to an employee's Android device over-the-air, while
enabling the employee to retain the privacy and control of their personal
mobile environments. VMware Horizon Mobile is expected to be available in
early 2012.
In December 2011, VMware announced new VMware View™ Clients for
Kindle Fire, Mac and Linux, along with updates to its popular VMware View
Clients for Android and iPad. The new VMware View Clients for Mac and
Linux enable IT organizations to empower more agile, productive and
connected workforce or school communities by providing an easy-to-access,
high-fidelity desktop virtualization experience optimized for the device of
their choice. The new VMware View™ Clients for Mac and Linux are
expected to be available in early 2012.
VMware plans to host a conference call today to review its fourth quarter
and 2011 results and to discuss its financial outlook. The call is
scheduled to begin at 2:00 p.m. PT/ 5:00 p.m. ET and can be accessed via
the Web at . The webcast will be available live, and a
replay will be available following completion of the live broadcast for
approximately 60 days.
VMware is the leader in virtualization and cloud infrastructure solutions
that enable businesses to thrive in the Cloud Era. Customers rely on VMware
to help them transform the way they build, deliver and consume Information
Technology resources in a manner that is evolutionary and based on their
specific needs. With 2011 revenues of $3.77 billion, VMware has more than
300,000 customers and 25,000 partners. The company is headquartered in
Silicon Valley with offices throughout the world and can be found online at
.
VMware, VMware vCenter Operations, VMware vFabric Application Management,
VMware vCenter Protect Essentials Plus, VMware View and VMware Go Pro are
registered trademarks or trademarks of VMware, Inc. in the United States
and/or other jurisdictions. Other marks mentioned herein are trademarks,
which are proprietary to VMware, Inc. or another company.
Reconciliations of non-GAAP financial measures to VMware's financial
results as determined in accordance with GAAP are included at the end of
this press release following the accompanying financial data. For a
description of these non-GAAP financial measures, including the reasons
management uses each measure, please see the section of the tables titled
"About Non-GAAP Financial Measures."
This press release contains forward-looking statements including, among
other things, statements regarding VMware's expected first quarter and
annual 2012 revenues and annual 2012 license revenue growth, the expected
transformation of IT and the role and value proposition of virtualization
and VMware solutions in the IT transformation, our ability to take
advantage of long-term opportunities, the value to customers and the
prospect of customer adoption of our new product suites, and the expected
features and benefits and availability of VMware Horizon Mobile and VMware
View Clients for Mac and Linux. These forward-looking statements are
subject to the safe harbor provisions created by the Private Securities
Litigation Reform Act of 1995. Actual results could differ materially from
those projected in the forward-looking statements as a result of certain
risk factors, including but not limited to: (i) adverse changes in general
economic or market conditions; (ii) delays or reductions in consumer or
information technology spending; (iii) competitive factors, including but
not limited to pricing pressures, industry consolidation, entry of new
competitors into the virtualization and cloud computing markets, and new
product and marketing initiatives by our competitors; (iv) factors that
affect timing of license revenue recognition such as product announcements,
beta programs and product promotions that can cause revenue recognition of
certain orders to be deferred; (v) our customers' ability to develop, and
to transition to, new products and computing strategies such as cloud
computing and desktop virtualization; (vi) the uncertainty of customer
acceptance of emerging technology; (vii) changes in the willingness of
customers to enter into longer term licensing and support arrangements;
(viii) rapid technological and market changes in virtualization software
and platforms for cloud and desktop computing; (ix) changes to product
development timelines; (x) VMware's relationship with EMC Corporation and
EMC's ability to control matters requiring stockholder approval, including
the election of VMware's board members; (xi) our ability to protect our
proprietary technology; (xii) our ability to attract and retain highly
qualified employees; (xiii) the successful integration of acquired
companies and assets into VMware; and (xiv) fluctuating currency exchange
rates. These forward looking statements are based on current expectations
and are subject to uncertainties and changes in condition, significance,
value and effect as well as other risks detailed in documents filed with
the Securities and Exchange Commission, including our most recent reports
on Form 10-K and Form 10-Q and current reports on Form 8-K that we may file
from time to time, which could cause actual results to vary from
expectations. VMware assumes no obligation to, and does not currently
intend to, update any such forward-looking statements after the date of
this release.
To provide investors and others with additional information regarding
VMware's results, we have disclosed in this press release the following
non-GAAP financial measures: non-GAAP operating income, non-GAAP net
income, non-GAAP operating margin, free cash flows and trailing
twelve-month free cash flows. VMware has provided a reconciliation of each
non-GAAP financial measure used in this earnings release to the most
directly comparable GAAP financial measure. These non-GAAP financial
measures differ from GAAP in that they exclude stock-based compensation,
employer payroll tax on employee stock transactions, amortization of
intangible assets, acquisition related items, the net effect of the
amortization and capitalization of software development costs and the gain
that VMware realized upon its sale of its investment in Terremark
Worldwide, Inc. during the second quarter of fiscal 2011, each as discussed
below.
VMware's management uses these non-GAAP financial measures to understand
and compare operating results across accounting periods, for internal
budgeting and forecasting purposes, for short- and long-term operating
plans, to calculate bonus payments and to evaluate VMware's financial
performance, the performance of its individual functional groups and the
ability of operations to generate cash. Management believes these non-GAAP
financial measures reflect VMware's ongoing business in a manner that
allows for meaningful period-to-period comparisons and analysis of trends
in VMware's business, as they exclude expenses and gains that are not
reflective of ongoing operating results. Management also believes that
these non-GAAP financial measures provide useful information to investors
and others in understanding and evaluating VMware's operating results and
future prospects in the same manner as management and in comparing
financial results across accounting periods and to those of peer companies.
Additionally, management believes information regarding free cash flows
provides investors and others with an important perspective on the cash
available to make strategic acquisitions and investments, to repurchase
shares, to fund ongoing operations and to fund other capital expenditures.
Management believes these non-GAAP financial measures are useful to
investors and others in assessing VMware's operating performance due to the
following factors:
Stock-based compensation. Although stock-based compensation is an
important aspect of the compensation of VMware's employees and executives,
determining the fair value of certain of the stock-based instruments we
utilize involves a high degree of judgment and estimation and the expense
recorded may bear little resemblance to the actual value realized upon the
vesting, future exercise or termination of the related stock-based awards.
Furthermore, unlike cash compensation, the value of stock options, which is
an element of our ongoing stock-based compensation expense, is determined
using a complex formula that incorporates factors, such as market
volatility, that are beyond our control. Management believes it is useful
to exclude stock-based compensation in order to better understand the
long-term performance of our core business and to facilitate comparison of
our results to those of peer companies. In addition, we account for
stock-based compensation under GAAP, which requires that we report the
excess income tax benefit from stock-based compensation as a financing cash
flow rather than as an operating cash flow. We have added this benefit back
to our calculation of free cash flows in order to generally classify cash
flows arising from income taxes as operating cash flows.
Employer payroll tax on employee stock transactions. The amount of
employer payroll taxes on stock-based compensation is dependent on VMware's
stock price and other factors that are beyond our control and do not
correlate to the operation of the business.
Amortization of intangible assets. A portion of the purchase price of
VMware's acquisitions is generally allocated to intangible assets, such as
intellectual property, and is subject to amortization. However, VMware does
not acquire businesses on a predictable cycle. Additionally, the amount of
an acquisition's purchase price allocated to intangible assets and the term
of its related amortization can vary significantly and are unique to each
acquisition. Therefore, VMware believes that the presentation of non-GAAP
financial measures that adjust for the amortization of intangible assets,
provides investors and others with a consistent basis for comparison across
accounting periods.
Acquisition related items. Acquisition related items include direct
costs of acquisitions, such as transaction fees, which vary significantly
and are unique to each acquisition. Additionally, VMware does not acquire
businesses on a predictable cycle.
Capitalized software development costs. Capitalized software
development costs encompasses capitalization of development costs and the
subsequent amortization of the capitalized costs over the useful life of
the product. Amortization and capitalization of software development costs
can vary significantly depending upon the timing of products reaching
technological feasibility and being made generally available. In addition,
we exclude the capitalization of software from our free cash flows to
better convey management's view of operating cash flows. To the extent that
we capitalize costs under generally accepted accounting guidance, we
increase our GAAP operating cash flows due to f the reduced expense
recognized within net income and paid out in cash during the period.
Gain on sale of Terremark investment. In the second quarter of 2011,
we sold our investment in Terremark Worldwide, Inc., which was acquired by
Verizon in a cash transaction, and realized a gain of $56.0 million. Our
investment in Terremark was made in connection with a business and
technical collaboration and was not made to seek an investment gain or to
fund our business operations. To the extent that sizeable gains or losses
are realized on such investments, they do not occur on a predictable cycle.
Additionally, the timing of the event that triggered our divestment and
whether or not we realized a gain or loss, was not under our control.
Tax Adjustment. Non-GAAP financial information for the quarter is
adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP
income. This rate is based on our estimated annual GAAP income tax rate
forecast, adjusted to account for items excluded from GAAP income in
calculating our non-GAAP income. Our estimated tax rate on non-GAAP income
is determined annually and may be adjusted during the year to take into
account events or trends that we believe materially impact the estimated
annual rate including, but not limited to, significant changes resulting
from tax legislation, material changes in the geographic mix of revenues
and expenses and other significant events. Due to the differences in the
tax treatment of items excluded from non-GAAP earnings, as well as the
methodology applied to our estimated annual tax rates as described above,
our estimated tax rate on non-GAAP income may differ from our GAAP tax rate
and from our actual tax liabilities.
Additionally, we believe that the non-GAAP financial measure, free cash
flows, is meaningful to investors because we review cash flows generated
from operations after taking into consideration capital expenditures due to
the fact that these expenditures are considered to be a necessary component
of ongoing operations. As discussed above, we also exclude capitalization
of software development costs and the excess income tax benefit from
stock-based compensation from our measure of free cash flows.
The use of non-GAAP financial measures has certain limitations because they
do not reflect all items of income and expense that affect VMware's
operations. Specifically, in the case of stock-based compensation, if
VMware did not pay out a portion of its compensation in the form of
stock-based compensation and related employer payroll taxes, the cash
salary expense included in costs of revenues and operating expenses would
be higher, which would affect VMware's cash position. VMware compensates
for these limitations by reconciling the non-GAAP financial measures to the
most comparable GAAP financial measures. These non-GAAP financial measures
should be considered in addition to, not as a substitute for or in
isolation from, measures prepared in accordance with GAAP and should not be
considered measures of VMware's liquidity. Further, these non-GAAP measures
may differ from the non-GAAP information used by other companies, including
peer companies, and therefore comparability may be limited. Management
encourages investors and others to review VMware's financial information in
its entirety and not rely on a single financial measure.
We have invoiced and collected in the Euro, the British Pound, the Japanese
Yen, and the Australian Dollar in their respective regions since May 2009.
As a result, our total revenues are affected by changes in the U.S. Dollar
against these currencies. In order to provide a comparable framework for
assessing how our business performed excluding the effect of foreign
currency fluctuations, management analyzes year-over-year revenue growth on
a constant currency basis. Since all of our entities operate with the U.S.
Dollar as their functional currency, unearned revenues for orders booked in
currencies other than U.S. Dollars are converted into U.S. Dollars at the
exchange rate in effect for the month in which each order is booked We
calculate constant currency on license revenues recognized during the
current period that were originally booked in currencies other than U.S.
Dollars by comparing the exchange rates at which the revenue was recognized
against the exchange rate that was used in the comparable period. We do not
calculate constant currency on services revenues, which include software
maintenance revenues and professional services revenues.
Contacts:
Michael Haase
VMware Investor Relations
650-427-2875
Gloria Lee
VMware Investor Relations
650-427-3267
Joan Stone
VMware Global Communications
650-427-4436
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Datum: 23.01.2012 - 21:01 Uhr
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