Last week the public companies busy in the virtualization market (VMware, Citrix and Microsoft) reported their Q4 2008 results. While it’s not possible to make a comparison, as both Citrix and Microsoft businesses are not solely depending on virtualization, it’s yet interesting to have an aggregated view of  how they performed.

VMware

• Revenues for the fourth quarter were $515 million, an increase of 25% from the fourth quarter of 2007.
• GAAP operating income for the fourth quarter was $102 million, an increase of 34% from the fourth quarter of 2007. Non-GAAP operating income for the fourth quarter was $135 million, an increase of 25% from the fourth quarter of 2007.
• GAAP net income for the fourth quarter was $111 million, or $0.29 per diluted share, compared to $78 million, or $0.19 per diluted share, for the fourth quarter of 2007.   Non-GAAP net income for the quarter was $142 million, or $0.36 per diluted share, compared to $103 million, or $0.26 per diluted share, for the fourth quarter of 2007. 
• Revenues for the full year 2008 were $1.9 billion, an increase of 42% from 2007.
• GAAP operating income for the full fiscal year 2008 was $313 million, an increase of 33% from 2007. Non-GAAP operating income for the year 2008 was $469 million, an increase of 39% from 2007.
• GAAP net income for the full fiscal year 2008 was $290 million, or $0.73 per diluted share, compared to $218 million, or $0.61 per diluted share, for 2007.   Non-GAAP net income for the year 2008 was $416 million, or $1.05 per diluted share, compared to $295 million, or $0.82 per diluted share, for 2007. 
• Cash was more than $1.8 billion and deferred revenue was $870 million as of December 31, 2008. Since the beginning of 2008, cash increased 50% and deferred revenue increased 57%.

VMware didn’t cut at all its workforce, but because of this uncertainty, VMware is not providing revenue guidance for the full year 2009.

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Citrix

• Product license revenue decreased 9%
• License updates revenue grew 13%
• Online services revenue grew 18%
• Technical services revenue, which is comprised of consulting, education and technical support, grew 13%
• Revenue grew in the America’s region by 3% and in the EMEA region by 2%, and decreased in the Pacific region by 6%
• Deferred revenue totaled $533 million, compared to $443 million on December 31, 2007, an increase of 21%
• Operating margin was 15% for the quarter; and non-GAAP operating margin was 26% for the quarter, excluding the effects of amortization of intangible assets primarily related to business combinations, stock-based compensation expense, the write-off of IPR&D, and the non-cash benefit related to the adjustment of payroll taxes discussed under non-GAAP results
• Cash flow from operations was $166 million, compared to $113 million in the fourth quarter of 2007
• Repurchased shares were 2.2 million shares at an average net price paid of $25.89.

Citrix cut the workforce by 10% and expects net revenue to be approximately flat as compared to 2008.

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Microsoft

• Microsoft Corp. today announced revenue of $16.63 billion for the second quarter ended Dec. 31, 2008, a 2% increase over the same period of the prior year
• Operating income, net income and diluted earnings per share for the quarter were $5.94 billion, $4.17 billion and $0.47, declines of 8%, 11% and 6%, respectively, compared with the prior year

Microsoft cut the workforce by 5,000 jobs and can’t offer quantitative revenue and EPS guidance for the balance of this fiscal year.

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