VMware Rallies on Q2 Earnings Results

Shares of VMware VMW are jumping higher in the after-hours following the release of the company's Q2 earnings results. Currently, shares are higher by 4.23%, trading at $110.50; they closed the regular session higher by 5.20%, at $106.02. VMware said that Q2 EPS came in at $0.51 on revenues of $921 million; the Street was looking for $0.47 per share on revenues of $873.5 million. Revenues increased 36.8% year over year. The company sees Q3 revenues in the range of $915-940 million; the Street was at $898.75 million. "VMware's second quarter results were driven by strength across geographies and record enterprise license agreement bookings as a percentage of total bookings," said Mark Peek, chief financial officer. "Third quarter 2011 revenues are expected to be in the range of $915 and $940 million, a year-over-year increase of 28% to 32%. The third quarter non-GAAP operating margin is expected to decline sequentially by 260 to 360 basis points. For the year, we expect annual revenues to be in the range of $3.65 billion and $3.75 billion, an increase of 28% to 31% compared to 2010." VMware, Inc. is a provider of virtualization solutions from the desktop to the data center. The company's suite of virtualization solutions addresses a range of complex information technology problems, that include cost and operational inefficiencies, facilitating access to cloud computing capacity, business continuity, software lifecycle management, and corporate computing device management.