Shares of VMware Inc. (NYSE: VMW), a provider of virtualization infrastructure solutions, are seeing a huge rally in trading today after the company reported strong second-quarter financial results.
For the second quarter, VMW reported revenue of $1.24 billion, representing an increase of 11% over the same period in the previous year. Operating income for the quarter stood at $270 million, up 28% on a year-over-year basis. On a non-GAAP basis, the company’s operating income for the second quarter was $417 million, up 16% on a year-over-year basis.
VMware reported net income of $244 million, or $0.57 per share for the second quarter, representing an increase of 28% over the same period in the previous year. Non-GAAP net income for the second quarter stood at $343 million, or $0.79 per share, compared to $296 million, or $0.68 per share reported for the same period in the previous year.
Looking ahead to the third quarter, the company expects revenue to be between $1.27 billion and $1.30 billion. License revenue for the third quarter is expected to be between $535 million and $555 million. For the full year, the company expects revenue to be between $5.12 billion and $5.26 billion. License revenue for the full year is expected to be between $2.21 billion and $2.29 billion.
Pat Gelsinger, CEO of VMware, said that the second quarter was a strong finish to a solid first half of 2013. Gelsinger further said that the company sees a significant market opportunity in the second half of 2013 and beyond.
VMW shares rose to an intra-day high of $84.21 earlier today. At last check, the stock was trading 16.72% higher at $83.20 on above average volume of 12.02 million. Despite the rally today, the stock is still down more than 11.60% for the year.