VMware Reports Fourth Quarter and Full Year 2016 Results
• Annual total revenue of $7.09 billion, an increase of 8% from 2015 on a GAAP basis and up 7% on a non-GAAP basis.
• Fourth quarter total revenues of $2.03 billion, an increase of 9% from the fourth quarter of 2015.
• The company also announced that its Board of Directors has authorized the repurchase of up to $1.2 billion of its Class A common stock through the end of fiscal 2018, ending on February 2, 2018. Stock will be purchased from time to time, in the open market or through private transactions, subject to market conditions. The stock repurchase authorization is in addition to the Company’s ongoing $500 million stock repurchase program announced in December 2016.
“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. “We’re 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.”
Pat Gelsinger, VMware Chief Executive Officer
Zane Rowe, executive vice president and chief financial officer, VMware, said, “This was a very good year for VMware demonstrated by strong revenue, earnings and cash flow growth, as well as a significant amount of capital returned to shareholders in the form of stock repurchases. We’re pleased to announce the authorization of an additional $1.2 billion of stock repurchases to be completed during fiscal 2018.”
Zane Rowe, VMware Executive Vice President and Chief Financial Officer
Recent Highlights & Strategic Announcements
• In October, VMware and Amazon Web Services announced a partnership to provide a new VMware vSphere®-based cloud service running on AWS. VMware Cloud™ on AWS will make it easier to run any application, using a common set of familiar software and tools, in a consistent hybrid cloud environment. This new service will be delivered, sold and supported by VMware and will be available later in 2017.
• VMware hosted over 75,000 customers, partners and influencers at VMworld® 2016, VMworld 2016 Europe and across APJ vForums in 17 cities across 13 countries.
• At VMworld 2016 Europe, the company introduced a wave of new products and services designed to help customers accelerate their digital transformation: o Now generally available, the new releases of VMware vSphere®, VMware vSAN™ and VMware vRealize® Automation™ all introduced support for containers, enabling developers to become more productive and IT to easily run containerized applications in production.
• VMware further expanded the company’s growing ecosystem of VMware Ready™ for Network Functions Virtualization (NFV) certified solutions, with 22 Virtual Network Functions now certified from 19 vendors worldwide. VMware’s growing set of NFV partners helps global communications service providers adopt and deploy NFV to transform their operations and service portfolio with speed and confidence.
• VMware was positioned as a leader in the “IDC MarketScape: Worldwide Virtual Client Computing Software 2016 Vendor Assessment (doc # US40700016, November 2016).” The report evaluated eight vendors based on criteria that span across strategies and capabilities. VMware was recognized for the second consecutive year for having the most complete mix of business and solution strategies and capabilities for delivering virtual desktops and applications through its VMware Horizon® portfolio of solutions and services that includes VMware Horizon® 7, Horizon Air™, Horizon FLEX™ and VMware App Volumes™.