VMware ends 2013 on a high as profit surges 63 per cent

But virtualisation giant warns operating margin set to slump after Airwatch takeover

VMware has rounded off its fiscal 2013 with record revenue and rocketing profits, but warned that its recent takeover of Airwatch will see its operating margin slump next quarter.

For the three months to 31 December, VMware's Q4 net income surged 62 per cent annually to $335m on revenue which climbed 14.7 per cent to $1.48bn.

The final quarter rounded off a year of record sales for the virtualisation giant after revenue peaked at $5.21bn, up 13 per cent on last year. Like-for-like net income for the full year jumped by more than a third - 36 per cent - to $1bn.

But the vendor's celebrations were dampened somewhat after it warned that non-GAAP operating margin in Q2 would fall slightly due to its recent takeover of mobile firm Airwatch.

It added that operating margin would then increase in the second half of 2014, but it did not stop its share price falling about five per cent last night on the news, according to the Wall Street Journal.

The UK shone for VMware in Q4 after it saw an improving picture in the banking and finance verticals. For EMEA as a whole, total bookings grew in the double-digits year on year.

"We believe reflects continued strong performance versus our peers in a mixed environment," said Carl Eschenbach, the firm's chief operating officer. He added that the US federal market also had a strong final quarter, with like-for-like bookings surging 25 per cent.

The UK also stood out for its strong demand for VMware's new VCHS service, which it unveiled at VMworld Europe in October.

"We saw strong customer demand for our beta [version] in December and anticipate general availability in February," said Eschenbach.

"Very quickly after announcing our beta, it filled up with some of the largest brands and logos in the UK market, which again showed strong demand for our hybrid service on a global basis."