VMWARE INC. (VMW, Financial) filed Quarterly Report for the period ended 2012-06-30.
Vmware, Inc. has a market cap of $40.89 billion; its shares were traded at around $87.57 with a P/E ratio of 53.2 and P/S ratio of 10.9. Vmware, Inc. had an annual average earning growth of 26.2% over the past 5 years.
Core operating expenses in cost of license revenues increased by $4.0 or 23% in the second quarter of 2012 compared with the second quarter of 2011, and by $7.1 or 20% in the first half of 2012 compared with the first half of 2011. The increases were primarily due to an increase of $2.2 and $3.8 in the second quarter and first half of 2012, respectively, for IT development costs.
Core operating expenses for sales and marketing increased by $66.6 or 23% in the second quarter of 2012 compared with the second quarter of 2011, and by $122.6 or 22% in the first half of 2012 compared with the first half of 2011. The increases were primarily due to growth in employee-related expenses of $54.5 and $99.9 in the second quarter and first half of 2012, respectively, driven by incremental growth in headcount. Additionally, the costs of marketing programs increased by $13.2 and $21.6 in the second quarter and first half of 2012, respectively. These increases were partially offset by the positive impact of $10.5 and $12.1, respectively, from fluctuations in the exchange rate between the U.S. Dollar and foreign currencies.
Pursuant to an ongoing reseller arrangement with EMC, EMC bundles our products and services with EMC s hardware and sells them to end-users. In the three months ended June 30, 2012 and 2011, we recognized revenues of $45.6 and $14.2, respectively, from products and services sold pursuant to our reseller arrangement with EMC. In the six months ended June 30, 2012 and 2011, we recognized revenues of $80.6 and $34.2, respectively, from such contractual arrangement with EMC. As of June 30, 2012, $107.6 of revenues from products and services sold under the reseller arrangement were included in unearned revenues.
Total fixed income securities of $1,253.6 and $529.0 were purchased in the second quarter of 2012 and 2011, respectively. In the first half of 2012 and 2011, we purchased $1,955.1 and $1,127.8, respectively, of fixed income securities. All purchases of fixed income securities were classified as cash outflows from investing activities. We classified these investments as short-term investments on our consolidated balance sheets based upon the nature of the security and their availability for use in current operations or for other purposes, such as business acquisitions and strategic investments. These cash outflows were partially offset by cash inflows of $625.5 and $500.9 in the second quarter of 2012 and 2011, respectively, and $1,304.8 and $869.6 in the first half of 2012 and 2011, respectively, as a result of the sales and maturities of fixed income securities. Activity in our fixed income portfolio increased primarily from increased cash equivalent and short-term investment balances available for investment, including a reallocation of funds from cash equivalents to fixed income securities.
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Vmware, Inc. has a market cap of $40.89 billion; its shares were traded at around $87.57 with a P/E ratio of 53.2 and P/S ratio of 10.9. Vmware, Inc. had an annual average earning growth of 26.2% over the past 5 years.
Highlight of Business Operations:
Software license revenues increased by $52.4 or 11% to $517.2 in the second quarter of 2012 from $464.8 in the second quarter of 2011. Software license revenues increased by $115.3 or 13% to $999.1 in the first half of 2012 from $883.8 in the first half of 2011. License revenues in the second quarter and first half of 2012 benefited from demand across our product offerings, as compared to the second quarter and first half of 2011.Core operating expenses in cost of license revenues increased by $4.0 or 23% in the second quarter of 2012 compared with the second quarter of 2011, and by $7.1 or 20% in the first half of 2012 compared with the first half of 2011. The increases were primarily due to an increase of $2.2 and $3.8 in the second quarter and first half of 2012, respectively, for IT development costs.
Core operating expenses for sales and marketing increased by $66.6 or 23% in the second quarter of 2012 compared with the second quarter of 2011, and by $122.6 or 22% in the first half of 2012 compared with the first half of 2011. The increases were primarily due to growth in employee-related expenses of $54.5 and $99.9 in the second quarter and first half of 2012, respectively, driven by incremental growth in headcount. Additionally, the costs of marketing programs increased by $13.2 and $21.6 in the second quarter and first half of 2012, respectively. These increases were partially offset by the positive impact of $10.5 and $12.1, respectively, from fluctuations in the exchange rate between the U.S. Dollar and foreign currencies.
Pursuant to an ongoing reseller arrangement with EMC, EMC bundles our products and services with EMC s hardware and sells them to end-users. In the three months ended June 30, 2012 and 2011, we recognized revenues of $45.6 and $14.2, respectively, from products and services sold pursuant to our reseller arrangement with EMC. In the six months ended June 30, 2012 and 2011, we recognized revenues of $80.6 and $34.2, respectively, from such contractual arrangement with EMC. As of June 30, 2012, $107.6 of revenues from products and services sold under the reseller arrangement were included in unearned revenues.
Total fixed income securities of $1,253.6 and $529.0 were purchased in the second quarter of 2012 and 2011, respectively. In the first half of 2012 and 2011, we purchased $1,955.1 and $1,127.8, respectively, of fixed income securities. All purchases of fixed income securities were classified as cash outflows from investing activities. We classified these investments as short-term investments on our consolidated balance sheets based upon the nature of the security and their availability for use in current operations or for other purposes, such as business acquisitions and strategic investments. These cash outflows were partially offset by cash inflows of $625.5 and $500.9 in the second quarter of 2012 and 2011, respectively, and $1,304.8 and $869.6 in the first half of 2012 and 2011, respectively, as a result of the sales and maturities of fixed income securities. Activity in our fixed income portfolio increased primarily from increased cash equivalent and short-term investment balances available for investment, including a reallocation of funds from cash equivalents to fixed income securities.
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