As a lot of you know VMware (a part of EMC) is going to basically spin off and go public. What do you think about this IPO? Some really big hitters like Intel and Cisco have already announced they have purchased some of the IPO. Are you going to get in early (first few trading days)?
Last year, VMware reported $704 million in revenue, operating income of $121 million and net income of $87 million, equivalent to 26 cents a share. Back in 2005, VMWare had $387 million of revenue, $94 million of operating income and net income of $67 million or 20 cents a share. So revenue was up 82%, operating income 29% and net income 30%. Looking at expenses, several line items grew even faster than the rapid rise in revenue, including R&D (up 104%), sales and marketing (up 91%), G&A (up 126%) and costs of servicing revenue (up 158%).