VMware, Inc. (VMW) has reported 18.23 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $441 million, or $1.04 a share in the quarter, compared with $373 million, or $0.88 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $597 million, or $1.43 a share compared with $534 million or $1.26 a share, a year ago. Revenue during the quarter grew 8.78 percent to $2,032 million from $1,868 million in the previous year period. Gross margin for the quarter expanded 71 basis points over the previous year period to 86.47 percent. Total expenses were 73.28 percent of quarterly revenues, down from 76.07 percent for the same period last year. This has led to an improvement of 279 basis points in operating margin to 26.72 percent.
Operating income for the quarter was $543 million, compared with $447 million in the previous year period.
However, the adjusted operating income for the quarter stood at $747 million compared to $656 million in the prior year period. At the same time, adjusted operating margin improved 164 basis points in the quarter to 36.76 percent from 35.12 percent in the last year period.
"Q4 closed out a strong fiscal 2016 and was one of the most balanced quarters for VMware in years," said Pat Gelsinger, chief executive officer, VMware. "Were very pleased with our strong product momentum and customer enthusiasm for our Cloud strategy. We believe we have the world’s most complete and capable hybrid cloud architecture, uniquely offering customers freedom and control in their infrastructure decisions."
Operating cash flow improves significantlyVMware, Inc. has generated cash of $2,381 million from operating activities during the year, up 25.38 percent or $482 million, when compared with the last year. The company has spent $465 million cash to meet investing activities during the year as against cash outgo of $336 million in the last year.
The company has spent $1,619 million cash to carry out financing activities during the year as against cash outgo of $1,141 million in the last year period.
Cash and cash equivalents stood at $2,790 million as on Dec. 31, 2016, up 11.91 percent or $297 million from $2,493 million on Dec. 31, 2015.
Working capital increases
VMware, Inc. has recorded an increase in the working capital over the last year. It stood at $5,781 million as at Dec. 31, 2016, up 10.51 percent or $550 million from $5,231 million on Dec. 31, 2015. Current ratio was at 2.27 as on Dec. 31, 2016, up from 2.27 on Dec. 31, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
