Dallas, Texas 07/23/2015 (Financialstrend) – VMware, Inc. (NYSE:VMW) efforts in the booming mobile device market are finally paying off, seen by a 4% increase in revenue for the June quarter. Revenues for the quarter rose to a high of $1.597 billion and could have been higher had the company not incurred a $75.5 million charge from the Justice Department. The company generated a Profit of $172 million or 40 cents a share against last year’s levels of 167 million or 38 cents a share.
Revised Full Year Guidance
Buoyed by the strong results for the quarter, VMware, Inc. (NYSE:VMW) raised its full year guidance and now expects profits of between $3.97 and $4.03 a share against a prior guidance of between $.94 and $4.02 a share. The company expects revenues of between $1.65 billion and $1.67 billion with analysts projecting revenues of $1.66 billion. However, some analysts continue to raise concerns over the company’s growth potential in the second half of the year.
The raise comes on VMware, Inc. (NYSE:VMW) registering an increase in demand for its virtualization software that is designed to allow organizations save money by consolidating applications. The company continues to register strong sales for new products.
The development has allowed VMware, Inc. (NYSE:VMW) to reduce its reliance on vSphere a core product it was core founded on. Fading tailwinds from the Enterprise License Agreement Renewal Cycle should result in the company paying more attention on emerging technologies such as NSX and VSAN according to the CEO.
During the quarter, VMware, Inc. (NYSE:VMW) spent $412 million on share buybacks in a bid to boost per-share earnings. The company has spent $850 million in Buybacks this year reducing its share count in the market by 1.7% compared to last year.
Separately Elliott Management Corp believes VMware, Inc. (NYSE:VMW) majority owner should push for a split in the fast-growing unit on suggestions that the parent is undervalued and on concern of an overlap of operations between the two companies.