Those delays came as customers looked to sign expanded deals. On a conference call with analysts COO Carl Eschenbach said the company didn't lose any deals to competitors. "We're seeing size and scope of our ELAs continue to grow as customers look to incorporate all of our products and even some of our new products... we're just in much deeper conversations with our customers,"Eschenbach said.
While first-quarter license revenue grew 15% from the year-ago quarter to $561 million VMWare said total booking grew less than 10%. Long-term license agreements, which include maintenance and support, are responsible for a quarter to a third of VMWare's sales according to Reuters.
Must read: Warren Buffett's 10 Favorite Growth Stocks
TheStreet Ratings team rates VMWARE INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate VMWARE INC (VMW) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."