VMware Inc. Cuts Guidance Despite Solid Results

The Company also Announces Layoffs virtualization number of employees and a new CFO.

A VMware cloud infrastructure and virtualization solutions provider, its fourth-quarter reported January 26 after the market close.

The company beat estimates of analysts and the income gains, growing from both No. GAAP and GAAP earnings in back-digit percentages. SOME strategic moves, including cuts The Executive Employment Opportunities, is also given a meet.

Despite the solid figures of the fourth quarter, VMware income cut its forecast for 2016 and now expect a lot more in the future growth slow.

Results VMware raw numbers

What Happened with VMware quarter esta?

VMware growth reported by both income WHILE licenses during the fourth quarter and Services The currency had a negative impact.

• Licensing income grew June 1% over the previous year it is $ 825 million. Constantly currency, increased income November 1%. I raise service revenue is up 12.6% year-on-year was $ 1,040 million. 

• Excluding the negative impact would have grown Moneda, one VMware's income by 12% compared to the year earlier total. 

• Free cash flow totaled $ 429 million for the quarter, up 36% year after year. The company spent just $ 75 million repurchase During the fourth quarter of shares below $ 250 million over the period last year. 

• Change income by sequential Licenses more licensing revenue is earned No. 1 February increased% over the previous year, or 6% in constant currency.

VMware also announced some strategic movements.

• If dismiss 800 employees and cargo between GAAP Take A $ 55 million over $ 65 million and the year of the average primer. 

• COO and CFO Jonathan Chadwick are the Company. Zane Rowe, EMC's chief financial officer, has been appointed chief financial officer of VMware. The company said Chadwick "VMware has decided to extend functions and Consulting, working with a number of companies as a member of the executive council No.".

The Company reduced above all forecast YEAR. If you wait 1 Total income between $ 6,785 million are $ 6,935 million, which repre Feb. 1% -4% growth. The company had previously Guided income for Growth in El Alto solo digits lower back. No. 2-GAAP EPS is expected to go are between $ 4.07 $ 4.16 compared to $ 4.06 in 2015.

What To Say I had management

CEO Pat Gelsinger highlighted the success of its emerging Products

• VMware Q4 2015 was strong final paragraph 2015. WE ARE particularly pleased with the growth in our portfolio and Emerging Businesses including NSX, and End User Computing virtual SAN. All these companies demonstrated a strong growth in Q4 both para whole year, I emphasized that the momentum that we expect continued in 2016.

Total reserves NSX now one of the annual TASA are more than $ 600 million, while reserves virtual SAN is located at an annual rate of more than $ 100 million.
The CFO said leaving Fourth Solid margins for the full year and fourth:

• Our Q4 2015 and results met or exceeded our income and operating margin expectations para el Year and quarter. We are seeing the results Products and Transitions WE Our positive momentum with our new solutions for the 2016