Hybrid cloud and virtualization giant VMware reported a strong fourth quarter, but said it wouldn’t comment on chatter about a potential reverse merger with parent Dell Technologies.
VMware reported a fourth quarter net loss of $440 million, or $1.09 a share, on revenue of $2.31 billion, up 14 percent from a year ago. The net loss was due to a $970 million charge related to the Tax Cuts and Jobs Act.
Non-GAAP fourth quarter earnings were $1.68 a share, said VMware.
Wall Street was expecting VMware to report earnings of $1.62 a share in the fourth quarter on revenue of $2.26 billion.
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For fiscal 2018, VMware reported earnings of $570 million, or $1.38 a share, on revenue of $7.92 billion, up 12 percent from the previous year.
CEO Pat Gelsinger said that the company closed strong the year strong and landed large deals in EMEA.
Gelsinger said that VMware’s hybrid cloud partnerships with IBM as well as AWS are paying off. On a conference call, Gelsinger said:
We continue to see customer interest and engagement with VMware Cloud on AWS. Customers across many industries are rapidly embracing VMware Cloud and AWS to enable modern, efficient and hybrid scalable infrastructure for a variety of use cases, including disaster recovery and data center extension. We are also pleased with the traction the VMware Cloud provider program continues to gain. The VMware Cloud provider program and achieved an annual revenue growth rate of over 30% in fiscal year 2018. We are also experiencing great global customer momentum with our VMware Cloud for IBM with customers.
VMware parent Dell Technologies has confirmed that it is exploring an initial public offering potentially via a reverse merger with VMware.