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In the next quarter’s sales report, VMware may announce its first ever drop in revenues within two years. The company puts the blame on recession for having a lower than forecasted revenues on the first quarter of this year.
VMware’s license returns decreased by 13 percent from that of last year, amounting to only $257 million. This is attributed to lower IT spending during the worldwide economy slump. Meanwhile, the company has recorded a 48 percent boost in service revenue, which makes up for the revenue drop in its other businesses.
VMware accumulated $69.9 million of net income for the first quarter, and earnings of $0.25 per share. The figures exceeded the expectations of financial analysts.
According to CFO Mark Peek, VMware doesn’t expect to go through a smooth ride this quarter because of the upshots of recession and the shift to an updated version of the firm’s key software.
"As a result, we expect our second-quarter revenues will be flat, or even down, compared to the second quarter of 2008,” Peek said.
