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Revenue from the unreality concern was little than expected.
Yury Cherenkov/Dreamstime.comVMware shares are trading little precocious Thursday aft the endeavor bundle supplier posted mixed results for its fiscal 2nd quarter.
For the 4th ended July 30, VMware (ticker: VMW) reported gross of $3.14 billion, successful enactment with Street estimates. But investors whitethorn not person liked the constituent parts.
License revenue, from the company’s accepted connected premise bundle business,- was $738 million, up 3%, and up of the Street statement forecast of $699 million. But subscription and software-as-a-service revenue—basically the company’s unreality business—was $776 million, up 23%, but beneath the Street statement telephone for $790 million.
Investors apt would person preferred to spot the 2 elements moving successful the other directions, with gross from the cloud, alternatively than from the on-premise business, the star.
The institution said remaining show obligations—a measurement of aboriginal work—stood astatine $11.2 cardinal astatine 4th end, up 8% from a twelvemonth earlier. The institution said subscription and SaaS annualized recurring gross roseate 26% to implicit $3.2 billion.
Profits connected a non-GAAP ground were $1.75 a share, up of the Street statement astatine $1.64 a share. Under mostly accepted accounting principles, the institution earned $411 million, oregon 97 cents a share.
VMware is bulk owned by Dell Technologies (DELL), which has announced plans to administer its shares to existent Dell holders. VMware said it expects the woody to adjacent successful aboriginal November. Dell this day posted better-than-expected results for the quarter.
In precocious trading, VMware was disconnected 4.7%, to $151.40.
Write to Eric J. Savitz astatine eric.savitz@barrons.com
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