VMware revenue bounces for Broadcom, chips were a little undercooked

Broadcom's turnaround plan for VMware appears to be working, as the silicon-and-software-slinger reported 47 percent year on year revenue growth – but also posted a loss. The acquisitive conglomerate today announced Q3 revenue of $13.07 billion – $7.25 billion of which came from its Semiconductor Solutions operation. Of the $5 …

[Pascal Monett]

"but also posted a loss"

So, not only are you losing money, but you are also losing major customers.

You can keep parading for now, Broadcom, but I don't think this is going to end well for you.

[Charlie Clark]

Re: "but also posted a loss"

The loss is down to charges for VM Ware and is desgined to be offset against tax.

[Anonymous Coward]

The growth is fine for now.... While customers plan their escape

Many customers (some I work for too) have extended at inflated costs but only because they were already fully fledged VCF customers, meaning they already had the flagship products, which makes the migration that bit hardware when it comes to a good NSX/VXLAN replacement.

Hyper-visor only customers are easier to migrate.

However a decision has been made not to use VMware at the Edge, which was one of the options of upgrades/implementations in the operational worlds.

[Charlie Clark]

Broadcom's revenue haul could be even more impressive…

Broadcom's revenue haul could be even more impressive…

Revenue is just the headline, but the Omnissa was disposed of because margins are lower and Tan is keen on EBITDA.

[Phil Koenig]

The turnaround is not "working"

Broadcom's turnaround plan for VMware appears to be working...

What is working is their user license inflation shakedown, for the many organizations who are not able to shift to an alternative yet.

Once they are able to migrate, that balloon will pop. Fast.

Since Wall Street mostly seems to care about the next 1-2 quarters at most, maybe that's enough to juice their capitalization to the point where they will have more funny-money to play around with.

But soon enough the emperor will be naked again.

[DonL]

Re: The turnaround is not "working"

VMware has also been delaying renewal quotes, so by the time you get the quote you'll be unable to migrate in time anyway.

[AnAnonymousCanuck]

Accounting

I'm not even an accountant and I can make the books look good for 1 quarter for ANY company.

I was able to make the books for my company look bad for over 20 years, lol. It took government Covid support for us to turn a profit.

Please Simon, skepticism is a useful skill for a journalist. Time will tell, This time next year?

AAC