VMware (VMW) Prelim. Q3 Revenue, EPS Outpace Expectations

VMware (NYSE: VMW) announced preliminary financial results for the third quarter of 2015.

Revenues for the third quarter are expected to be $1.672 billion, an increase of 10% from the third quarter of 2014, or an increase of 14% in constant currency. "I'm pleased with our overall Q3 results, with total revenue expected to exceed the high end of our guidance range," said Jonathan Chadwick, chief financial officer, chief operating officer and executive vice president, VMware.

**** The Street sees Q3 revenue of $1.66 billion.

License revenues for the third quarter are expected to be $681 million, an increase of 7% from the third quarter of 2014, or an increase of 11% in constant currency.

GAAP operating margin for the third quarter is expected to be 19.5%. Non-GAAP operating margin for the third quarter is expected to be 31.5%.

GAAP net income per diluted share is expected to be $0.60, up 35% year over year. Non-GAAP net income per diluted share for the third quarter is expected to be $1.02 per share, up 18% year over year.

*** The Street sees EPS of $0.99.

Total revenues plus sequential change in total unearned revenues are expected to grow 3% year-over-year, or grow 8% year-over-year in constant currency.

License revenues plus sequential change in unearned license revenues are expected to grow 2% year-over-year, or grow 7% year-over-year in constant currency.

Additional details regarding third quarter earnings will be provided in a press release and during an earnings announcement conference call as previously scheduled on October 20, 2015 at 2:00 p.m. PT/ 5:00 p.m. ET.

VMware's Pat Gelsinger will also join EMC executives in a financial analyst conference call today at 4:45 a.m. PT / 7:45 am ET. The call will be broadcast live at http://ir.vmware.com or you may dial in: 210-795-1098, passcode: EMC. A replay of the webcast will be available on the website for two months.

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