VMware has been stuck in a rut lately but now appears to have escaped by posting a strong first quarter for 2018.
The outfit has made $1.74 billion which was nine percent more than Q1 2016, and posting a GAAP net income of $232 million, up from Q1 2016’s $161 million.
VMware has adopted Dell’s financial calendar and therefore counted January 2017 as a discrete “stub”. The Q1 2018 numbers refer to February to April, while the 2016 numbers cover January to March of that year. The company had revenue of $496 million in January, a reflection of seasonal slowness.
The company also reported that R&D costs are up 18.2 percent and billings were $1.35 billion rather than an expected $1.6 billion.
Investors remain that worried that VMware is not out of the woods yet. However, the company earnings call reveal increased guidance for both the second quarter and FY 18. It now expects $1.84-$1.89 billion next quarter, and $7.61 billion for the full year.
