VMware boosts quarterly revenue and sees a good year ahead

VMware (s vmw) executives told investors Tuesday that they were pleased with the company’s performance in the first quarter of the year, boasting $1.19 billion in revenues, up 13 percent year over year, even as profits slipped 9 percent to $174 million. Earnings per share of 74 cents exceeded analyst expectations on average by 4 cents.

Adoption of products slated for release later this year have executives feeling hopeful about seeing this year’s total revenues. They should come in 14 percent to 16 percent ahead of last year when taking into account the removal of revenues and costs related to the Pivotal Initiative, Chief Financial Officer Jonathan Chadwick said on a call with investors. Last year’s revenue came in at $4.6 billion.

Following on VMware’s $1.26 billion acquisition of network-virtualization player Nicira, VMware will ship its NSX software, drawing on elements of Nicira software, in the second half of the year. NSX will lower customers’ capital and operational expenditures and “transform network operations in a non-disruptive manner,” said President Carl Eschenbach.

Eschenbach also said the vCloud Hybrid service will launch on May 21.

Rather than expecting a negative impact from the OpenStack movement, VMware CEO Pat Gelsinger said he sees OpenStack as offering “an expanding addressable market for VMware.”