Strength of demand in Asia helps VMware double income in Q3

Server virtualization specialist VMware rode strong sales in Asia to more than double third quarter income, the company reported Tuesday.

The company, the largest in its segment, reported revenue of $941.9 million, up 32 percent from the year-ago quarter's $714.2 million, and reported earnings of $177.5 million, or $0.41 per share, in the quarter, up from $84.6 million, or $0.20 per share, a year ago.

Adjusted earnings were $0.53 per share, topping analyst expectations of $0.50 and revenue of $929.8 million.

"Demand was especially strong in the Asia-Pacific markets, and we also experienced the seasonal impact of sales to the U.S. federal government," said Mark Peek, VMware's chief financial officer.

VMware said it expects to continue to roll in the fourth quarter, forecasting a revenue increase over the year-ago quarter of 23 to 27 percent to between $1.03 billion and $1.06 billion. Analysts predict revenue of $1.03 billion.

VMware has seen its growth accelerate as more companies invest in data centers, running software in the cloud to help reduce costs and capex.

VMware is majority owned by data storage company EMC Corp.

For more:
- see this Associated Press article

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