VMware results for Q1 2013

On April 23, VMware released the results about its growth for Q1 2013.

VMware, announced a total  revenue growth of $1.19 billion, for an increase of 13 percent compared to Q1 2012.

Operating Margin registered a decrease of 26%, as reported in the official news, reflecting a $63 million realignment charge.

The non-GAAP Operating Margin registered an increment of 26% from Q1 2012.

The stock market over-reacted to the results and several analysts downgraded VMware rating from Market Perform to  Underperform consequently re-aligning the price target of its shares.

  • Revenues for the first quarter were $1.19 billion, an increase of 13% from the first quarter of 2012.
  • Operating income for the first quarter was $160 million, a decrease of 26% from the first quarter of 2012, reflecting a $63 million realignment charge. Non-GAAP operating income for the first quarter was $388 million, an increase of 13% from the first quarter of 2012.
  • Net income for the first quarter was $174 million, or $0.40 per diluted share, down 9% compared to $191 million, or $0.44 per diluted share, for the first quarter of 2012. Non-GAAP net income for the quarter was $319 million, or $0.74 per diluted share, up 11% compared to $287 million, or $0.66 per diluted share, for the first quarter of 2012.
  • Operating cash flows for the first quarter were $676 million, an increase of 17% from the first quarter of 2012.  Free cash flows for the quarter were $599 million, an increase of 10% from the first quarter of 2012.
  • Cash, cash equivalents and short-term investments were $4.94 billion and unearned revenue was $3.49 billion as of March 31, 2013.