VMware's Revenue Rises 42 Percent in 2008 -- ADTmag

VMware's Revenue Rises 42 Percent in 2008

By Becky Nagel
January 27, 2009

One bright spot in the IT economy appears to be virtualization, with leading provider VMware today announcing that its yearly revenue rose 42 percent in 2008 to $1.9 billion. Fourth quarter revenues were a "solid" $515 million -- up 25 percent over last year.

The company's revenue is up across the board -- U.S. revenues rose in 2008 37 percent to $988 million, international is up 48 percent to $893 million, service revenues rose 67 percent and licensing revenue came up 30 percent to 1.2 billion. The company's "GAAP net income" in the last quarter was $111 million; for 2008 it's $290 million -- up from 218 million in 2007.

The company has $1.8 billion in cash.

"We have been executing well in a difficult economy," Paul Maritz, president and chief executive officer of VMware, said in a prepared statement. "Customers continue to make VMware a strategic priority because our solutions -- used by more than 130,000 customers -- help reduce capital and operational costs...VMware is well-prepared for the opportunities and challenges ahead."

Despite its rosy 2008 earnings, the company did warn investors that it won't provide 2009 estimates due to "uncertainty in global economic conditions."

More information on its results can be found here.

About the Author

Becky Nagel is vice president of AI for 1105 Media, where she specializes in training internal and external customers on maximizing their business potential via a wide variety of generative AI technologies as well as developing cutting-edge AI content and events. She's the author of "ChatGPT Prompt 101 Guide for Business Uses," regularly leads research studies on generative AI business usage, and serves as the director of AI Boardroom, a new resource for C-level executives looking to excel in the AI era. Prior to her current position she was a technical leader for 1105 Media's Web, advertising and production teams as well as editorial director for a suite of enterprise technology publications, including serving as founding editor of PureAI.com. She has 20 years of enterprise technology journalism experience, and regularly speaks and writes about generative AI, AI, edge computing and other cutting-edge technologies. She can be reached at [email protected].