PALO ALTO, CA -- VMware today announced financial results for the first quarter of 2016:
- Revenues for the first quarter were $1.59 billion, an increase of 5% from the first quarter of 2015, or up 6% year-over-year in constant currency.
- License revenues for the first quarter were $572 million, a decrease of 1% from the first quarter of 2015, or up 1% year-over-year in constant currency.
- GAAP net income for the first quarter was $161 million, or $0.38 per diluted share, down 17% per diluted share compared to $196 million, or $0.45 per diluted share, for the first quarter of 2015. Non-GAAP net income for the quarter was $366 million, or $0.86 per diluted share, flat per diluted share compared to $369 million, or $0.86 per diluted share, for the first quarter of 2015.
- GAAP operating income for the first quarter was $192 million, a decrease of 12% from the first quarter of 2015. Non-GAAP operating income for the first quarter was $446 million, a decrease of 1% from the first quarter of 2015.
- Operating cash flows for the first quarter were $720 million. Free cash flows for the quarter were $679 million.
- Cash, cash equivalents and short-term investments were $8.25 billion, and unearned revenues were $4.98 billion as of March 31, 2016.
- Total revenues plus sequential change in total unearned revenues grew 5% year-over-year, and grew 6% year-over-year when adjusted for constant currency.
- License revenues plus sequential change in unearned license revenues grew 1% year-over-year, and grew 2% year-over-year when adjusted for constant currency.
VMware announced that its Board of Directors has authorized VMware to repurchase up to an aggregate of $1.2 billion of its Class A common stock through December 31, 2016 in the open market, subject to market conditions. VMware plans to repurchase $1.2 billion of its Class A common stock in 2016.
"Q1 was a good start to 2016. We made solid progress with our strategic goal of building momentum for our newer growth businesses and in the cloud," said Pat Gelsinger, chief executive officer, VMware. "We continue to see momentum across our portfolio of growth products and businesses, including NSX, Virtual SAN and End-User Computing."
"I'm pleased with the team's ability to execute according to our Q1 plan," commented Zane Rowe, executive vice president and chief financial officer, VMware. "Our intent to repurchase $1.2 billion of stock this year underscores the confidence we have in the business and reinforces our capital allocation strategy, which includes returning capital to shareholders."
Recent Highlights & Strategic Announcements
- In February, as part of VMware's strategy to help customers extend their private cloud into the public cloud, VMware and IBM announced a strategic partnership designed to enable enterprise customers to easily extend their existing workloads from their on-premises software-defined data center to the cloud. Customers will be able to leverage VMware's proven technologies with IBM's growing footprint of 45 Cloud Data Centers worldwide to help them scale globally and manage their data locally and securely.
- The company launched VMware Workspace ONE, a new platform designed to deliver a digital workspace that integrates device management, application delivery and identity management technologies. These combined benefits, on a single mobile platform, enable secure management and delivery of business critical resources to employees for corporate IT, and consumer simple access for end-users.
- VMware advanced its cloud management platform with the introduction of VMware vRealize Suite 7. The suite's new product updates, together with pricing and packaging enhancements, are designed to help customers readily address the most common use cases VMware has identified in customers' journey to the cloud.
- In CEO Pat Gelsinger's keynote at RSA, VMware demonstrated a technical preview of Distributed Network Encryption, powered by NSX. This is a unique new technology which enables the encryption of data and applications across clouds.
- VMware continues to rapidly evolve its hyper-converged software with VMware Virtual SAN 6.2, the fourth-generation of VMware's simple, enterprise-grade native storage for vSphere. The new features will help customers to achieve a more cost-efficient performance, improve support for any application and accelerate time-to-value.
- At Mobile World Congress, IBM, JAMF, MobileIron and AirWatch announced the formation of the AppConfig Community. With more than 60 member companies, the Community's mission is to establish a common approach for enterprise app configuration and security based on OS native standards, including the extensive frameworks available in iOS.