VMware's parent company, EMC Corp., said its third quarter profit fell by almost a third, and they expect to cut 1,250 jobs or 4 percent of the work force by the end of next year. Although these reductions will not affect VMware as the company continues to grow and outpace previous expectations.

Despite these cuts, EMC expects to finish 2007 with more employees than it will have at the end of this year as it adds workers from the acquired companies.

Unlike its parent company, VMware reported that it had boosted third quarter revenues over the same period a year ago by 86% to $189 million. The company said that this was the highest growth rate in five quarters.

The company's revenue continues to climb. For the first half of 2006, VMware reported its revenue as $288 million. Compare this to the annual revenue recognized in 2005 - $387 million, 2004 - $218 million, and 2003 - $100 million, the growth is staggering.

With more than 20,000 companies now running VMware technology, including 99 of the Fortune 100 companies, VMware hopes the growth trend will continue. With products like VMware Infrastructure 3 shipping and the recently announced Mac product, things look positive for the company.

Posted by David Marshall on October 22, 2006 07:48 PM