Cloud Talk: VMWare (VMW) Good - Riverbed Technology (RVBD) Bad

First VMWare, up about 10% as I type this in aftermarket.  Expectations were for $873M in revenue and 47 cents of EPS.  VMW came in at $921M and 55 cents ex items (51 cents with items).  There was also a guide up in Q3 to $915-940M versus expectations of $899M.

• U.S. revenues for the second quarter of 2011 grew 35% to $450 million from the second quarter of 2010. International revenues grew 38% to $471 million from the second quarter of 2010.
• License revenues for the second quarter of 2011 were $465 million, an increase of 44% from the second quarter of 2010 as reported, and an increase of 40% measured in constant currency. Service revenues, which include software maintenance and professional services, were $456 million for the second quarter of 2011, an increase of 30% from the second quarter of 2010.

Riverbed Technology is down over 17% as I type.  Expectations were for $173M in revenue and 21 cents of EPS.  RVBD missed by $3M in revenue while coming in line on EPS.  A harsh reaction in my eyes but any stock with momo investors in it must continue almost always continue to show outsized results vs expectations or get punished.  Earnings report here.

• Riverbed Technology today reported financial results for its second quarter ended June 30, 2011 (Q2’11). Revenue for Q2’11 was $170.3 million, up 35% compared to the second quarter of fiscal year 2010 (Q2’10).
• Reporting on a GAAP basis, net income for Q2’11 was $11.3 million, or $0.07 per share. This compares to GAAP net income of $6.6 million, or $0.04 per diluted share, in Q2’10. Non-GAAP net income for Q2’11 was $34.9 million, or $0.21 per diluted share, as compared to non-GAAP net income for Q2’10 of $19.2 million, or $0.13 per share.

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