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   Technology StocksVMware, Inc. (VMW)

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From: Glenn Petersen8/24/2018 11:54:05 AM
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The second quarter press release:

VMware shares slide despite strong Q2 results

The company reported Q2 revenue of $2.17 billion, uppercent year over year.

By Natalie Gagliordi for Between the Lines |
August 23, 2018 -- 20:32 GMT (13:32 PDT)

VMware released second quarter financial results after the bell on Thursday, beating market estimates. The virtualization giant reported a net income of $644 million, or $1.56 per share. The income includes a gain of $231 million from VMware's investment in Pivotal Software, the company said.

Non-GAAP earnings were $1.54 per share on a revenue of $2.17 billion, up 13 percent year over year. Wall Street was looking for earnings of $1.49 per share with revenue of $2.14 billion.

VMware's license revenue came to $900 million, an increase of 19 percent year over year. Services revenue was $1.2 billion.

In statement, CFO Zane Rowe said the quarter was driven by "strong operational performance across the business. Product license bookings grew double-digits year-over-year in all major product categories."

In terms of guidance, analysts expect VMware to report Q3 earnings of $1.49 per share on revenue of $2.16 billion. Shares of VMware were down almost four percent after hours.

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From: Glenn Petersen8/27/2018 4:47:41 PM
   of 351
h/t JakeStraw

Amazon deepens its partnership with VMware to go after companies that don't use the cloud

  • The new software will support databases from companies like Microsoft and Oracle.
  • Hundreds of VMware customers are using VMware's technology on Amazon's cloud.
  • Amazon and VMware first announced their cloud partnership in 2016.
Jordan Novet | @jordannovet
Published 4 Hours Ago Updated 3 Hours Ago

Bloomberg | Getty Images
Andy Jassy, CEO of Amazon Web Services, speaks at the AWS Summit in San Francisco on April 19, 2017.`

Amazon Web Services has emerged as a dominant force in cloud computing by hosting other companies' technology infrastructure in its massive data centers. But AWS is also rolling out services for companies that do it the old way.

On Monday, Amazon and VMware introduced a version of Amazon's cloud-based database management software that's meant for companies that still use on-premises data centers.

The announcement at VMware's VMworld conference in Las Vegas is the latest example of Amazon's shift in strategy to support corporate computing outside its own facilities, even as more business moves to the cloud, where AWS is the market leader. The move strengthens AWS' so-called hybrid-cloud offerings against rivals Microsoft, Google and IBM.

The software, which will be available in the next few months, is designed to make it easier for network administrators to run their databases across more servers, regardless of whether those machines are stored in house or hosted by Amazon. The product — Amazon Relational Database Service on VMware — supports popular databases from Microsoft and Oracle, as well as open-source options like MariaDB.

Amazon and VMware started working together on a combination of cloud and on-premises technology in October 2016. The partnership is helpful for systems administrators who are familiar with VMware and want to take advantage of cloud.

VMware shares have more than doubled since that deal was announced
. The company has rolled out several updates, and hundreds of VMware customers are using its technology on AWS, VMware CEO Pat Gelsinger said on the company's quarterly earnings call on Thursday.

The new technology could pose a threat to Microsoft's Azure Stack, on-premises software tools that mirror what's available in the company's Azure public cloud.

"Amazon reps today, when they hear Azure Stack, they bring in VMware Cloud on AWS," Sanjay Poonen, VMware's chief operating officer, told CNBC last week. "The partnership with VMware is the best alternative to Azure Stack."

It could also represent a new challenge to Oracle, which operates its own public cloud. Amazon has been working to move off of Oracle's database software entirely.

Gelsinger has told analysts that VMware's work with AWS would not result in a material amount of revenue this year. Stifel analysts wrote in a note last week that they don't expect material revenue from VMware on AWS until at least VMware's 2020 fiscal year, which begins in April 2019.

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From: JakeStraw9/7/2018 3:07:42 PM
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Edited Transcript of VMW earnings conference call or presentation 23-Aug-18

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From: JakeStraw11/6/2018 12:08:28 PM
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VMware acquires Heptio, the startup founded by 2 co-founders of Kubernetes

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From: Glenn Petersen12/28/2018 12:01:38 PM
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VMware to pay previously announced one-time special dividend on Dec. 28

By Ciara Linnane
Published: Dec 28, 2018 7:49 a.m. ET

Enterprise software company VMware Inc. VMW, +1.61% said Friday it will pay its previously announced one-time special dividend on December 28. The company will make the $11 billion payment to shareholders of record as of close of business on Dec. 27. It expects that 60.39% of the dividend will be treated as a taxable dividend for U.S. federal tax purposes, with the remainder being treated first as a return on capital and then as a capital gain. Shares were slightly higher premarket and have gained 23% in 2018, while the S&P 500 SPX, +0.27% has fallen 6.9%.

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From: Glenn Petersen1/1/2019 11:49:30 AM
   of 351
Here's What's Going On With VMware and Dell Today

VMware is down big after paying a massive special dividend, Dell is a publicly trading company again, and the tracking stock is no more.

Timothy Green
Motley Fool
Dec 31, 2018 at 2:46PM

What happened

Dell Technologies completed its journey back to the public markets last Friday by acquiring all outstanding Dell Technologies Class V ( NYSE:DVMT) stock. The transaction also involved VMware ( NYSE:VMW), which Dell controls with a roughly 80% stake. VMware paid shareholders a one-time $11 billion dividend on Friday as part of the deal, with most of that payout going to Dell.

Shares of Dell were up about 3.4% at 1:30 p.m. EST, while the Class V shares are no longer trading. Shares of VMware were down 14.3% from Friday's close, reflecting the payment of the special dividend. Today is the ex-dividend date. Adjusted for the special dividend, VMware stock was up about 3%.

source: Dell.

So what

The Dell Class V stock was a tracking stock intended to track the performance of Dell's stake in VMware. The stock was originally issued as part of Dell's deal to acquire EMC, which closed in 2016. EMC owned 81% of VMware prior to being acquired by Dell.

Dell successfully exchanged a mix of cash and new Class C shares for all outstanding Class V shares on Friday. The company paid $14 billion in cash and issued nearly 150 million Class C shares to retire the tracking stock. The move greatly simplifies Dell's corporate structure, and it brought Dell back to the public markets without the need for a public offering.

Class V shareholders had the option to receive either $120 in cash or 1.8066 Class C shares for each Class V share, up to a $14 billion aggregate cash limit. More than 90% of shareholders chose the cash option, with the rest picking the share option. Because the cash limit was exceeded, shareholders who opted for cash will receive a portion of their payment in Class C stock. The cash option was the smart move, with shares of the Class C stock currently trading for around $47 per share.

As part of the transaction, VMware paid a one-time special dividend totaling $11 billion. The dividend is payable to shareholders of record at the close of business on Dec. 27, with a payment date of Dec. 28. Dec. 31 is the ex-dividend date. The $11 billion payment works out to $26.81 per share.

"Dell Technologies was created to be the essential infrastructure company for this digital era, and with today's announcement, we are aligning the interests of our stakeholders to benefit from the integrated innovations and value creation from across our entire family of businesses," said Dell CEO Michael Dell in the press release announcing the completion of the transaction.

Now what

With the tracking stock gone and Dell back in the public markets, investors can now bet on the company as a whole, not just on its stake in VMware. Dell's revenue has been growing briskly, with 15% year-over-year growth in its fiscal third quarter. But the company is still saddled with a substantial amount of debt. As of Nov. 29, Dell had about $48.7 billion of debt and $17.5 billion in cash. The dividend received from VMware will pay for part of the cash portion of the tracking stock purchase.

VMware now has quite a bit less cash after paying the one-time dividend. Total cash as of Nov. 29 was $13.5 billion, along with about $4 billion of debt. This deal will make VMware's balance sheet a lot weaker.

After going private in 2013 and creating its complex share structure a few years later to finance the EMC deal, Dell has undone those moves and is once again a public company. How it all works out this time around remains to be seen.

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From: JakeStraw1/9/2019 11:30:57 AM
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VMware is now covered by analysts at Barclays PLC. They set an "overweight" rating on the stock.

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From: JakeStraw2/26/2019 2:06:03 PM
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New VMware Kubernetes product comes courtesy of Heptio acquisition

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From: JakeStraw3/1/2019 8:40:00 AM
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VMware Reports Fourth Quarter and Fiscal Year 2019 Results
“Q4 was a terrific ending to a strong fiscal ’19 driven by broad-based strength across our diverse product portfolio and in all three geographies,” commented Pat Gelsinger, chief executive officer, VMware. “VMware is providing the essential ubiquitous software foundation for our customers’ digital transformations while we also work to drive positive global impact across our people, products and the planet.”

“We’re pleased with our performance in the quarter and for the year, including the return of $11 billion dollars to shareholders through a special dividend in December,” said Zane Rowe, executive vice president and chief financial officer, VMware. “We continued to drive deeper engagement with our customers and partners, who leverage the VMware portfolio for their business initiatives.”

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From: JakeStraw3/1/2019 2:44:14 PM
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VMware had its price target raised by analysts at Deutsche Bank AG to $200.00. They now have a "buy" rating on the stock.

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