This week VMware announced its financial results for Q2 of 2010.
The company closes the Q2 quarter with $2.8B cash and $1.5B of deferred revenue, a year-over-year growth of 33%.
Total revenue for the Q2 was $674 million, up 48% from Q2 2009, while total license revenue was $324 million, an increase of 42% from the Q2 2009.
Software maintenance and support revenue was $290 million, an increase of 54% from last year, but the revenue decreased sequentially. Customers continue to buy on average more than 24 months of support and maintenance with each new license purchase.
Professional Services revenue was $60 million, an increase of 54% from last year, and up 11% sequentially, but VMware doesn’t expect a strong growth in the PSO revenue because of the investments in the partners ecosystem.
VMware also reported a great performance in the Americas: US revenues increased 43% from a year ago to $334 million, representing half of total revenue, and Latin America scored a 85% year-over-year growth.
VMware reported a mixed performance in Europe: losing ground compared to Q1 2010 in those countries that heavily adopt virtualization, UK and Germany, and improving in more challenging markets like France, Ireland and Russia.
APAC performance has been much better, with a 80% year-over-year growth, especially in China, Japan, India and Australia.
Total operating expense, including costs of services and costs of licenses, increased 6% sequentially to $487 million.
Sales and marketing expenses were $215 million or 31.9% of revenues, compared with 31.6% in the prior quarter.
Q3 revenues are expected to be within a range of $680 million and $705 million, or year-over-year growth of between 39% and 44%. VMware expects license revenue to be flat to slightly down from Q2.
The company currently forecasts the 2010 revenue between $2.725 billion and $2.8 billion, equal to a growth of 35% to 38% compared to last year.
