VMware reports record fourth quarter

BANGALORE, INDIA: VMware, Inc., the global leader in virtualization and cloud infrastructure, announced financial results for the fourth quarter and full year of 2013:

Quarterly Review

· Revenues for the fourth quarter were $1.48 billion, an increase of 15 per cent from the fourth quarter of 2012. Excluding revenues attributable to Pivotal and all divestitures that occurred in 2013, revenues for the fourth quarter increased 20 per cent from the fourth quarter of 2012.1

· Operating income for the fourth quarter was $374 million, an increase of 48 per cent from the fourth quarter of 2012. Non-GAAP operating income for the fourth quarter was $528 million, an increase of 25 per cent from the fourth quarter of 2012.

· Net income for the fourth quarter was $335 million, or $0.77 per diluted share, an increase of 62 per cent per diluted share compared to $206 million, or $0.47 per diluted share, for the fourth quarter of 2012. Non-GAAP net income for the quarter was $436 million, or $1.01 per diluted share, an increase of 25 per cent per diluted share compared to $349 million, or $0.81 per diluted share, for the fourth quarter of 2012.

· Operating cash flows for the fourth quarter were $688 million, an increase of 40 per cent from the fourth quarter of 2012. Free cash flows for the quarter were $590 million, an increase of 44 per cent from the fourth quarter of 2012.

Annual Review

· Revenues for 2013 were $5.21 billion, an increase of 13 per cent from 2012 or an increase of 17 per cent excluding revenues attributable to Pivotal and all divestitures that occurred in 2013.

· Operating income for 2013 was $1.09 billion, an increase of 25 per cent from 2012. Non-GAAP operating income for 2013 was $1.77 billion, an increase of 19 per cent from 2012.

· Net income for 2013 was $1.01 billion, or $2.34 per diluted share, an increase of 36 per cent compared to $746 million, or $1.72 per diluted share, for 2012. Non-GAAP net income for 2013 was $1.46 billion, or $3.37 per diluted share, an increase of 18 per cent per diluted share compared to $1.24 billion, or $2.85 per diluted share, for 2012.

· Operating cash flows for 2013 were $2.54 billion, an increase of 34 per cent from 2012, and free cash flows for the year were $2.19 billion, an increase of 32 per cent from 2012.

· Cash, cash equivalents and short-term investments were $6.18 billion and unearned revenues were $4.09 billion as of December 31, 2013.

"Our strong performance throughout 2013 is evidence that our customers are embracing our vision and realizing value from our solutions," said Pat Gelsinger, chief executive officer, VMware. "In every region of the world, customers are making a long-term bet on VMware to help them transform their businesses for the mobile-cloud world."

"We delivered record 2013 results as customer demand across all our business offerings continues to thrive," said Jonathan Chadwick, chief financial officer, VMware. "We have increased our guidance for 2014 and are confident about our opportunities for long-term growth as we help our customers innovate for the future."