VMware announced financial results for the fourth quarter and full year of 2016. Revenue for the fourth quarter was $2.03 billion, an increase of 9% from the fourth quarter of 2015.
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License revenue for the fourth quarter was $887 million, an increase of 8% from the fourth quarter of 2015.
GAAP net income for the fourth quarter was $441 million, or $1.04 per diluted share, up 18% per diluted share compared to $373 million, or $0.88 per diluted share, for the fourth quarter of 2015. Non-GAAP net income for the quarter was $597 million, or $1.43 per diluted share, up 13% per diluted share compared to $534 million, or $1.26 per diluted share, for the fourth quarter of 2015.
GAAP operating income for the fourth quarter was $543 million, an increase of 21% from the fourth quarter of 2015. Non-GAAP operating income for the fourth quarter was $747 million, an increase of 14% from the fourth quarter of 2015.
Operating cash flows for the fourth quarter were $463 million. Free cash flows for the quarter were $419 million.
Total revenue plus sequential change in total unearned revenue grew 13% year-over-year.
License revenue plus sequential change in unearned license revenue grew 14% year-over-year.
Annual review
Revenue for 2016 was $7.09 billion, an increase of 8% from 2015 on a GAAP basis and up 7% on a non-GAAP basis.
License revenue for 2016 was $2.79 billion, an increase of 3% from 2015
GAAP net income for 2016 was $1.19 billion, or $2.78 per diluted share, up 19% per diluted share compared to $997 million, or $2.34 per diluted share, for 2015. Non-GAAP net income for 2016 was $1.86 billion, or $4.39 per diluted share, up 8% per diluted share compared to $1.73 billion, or $4.06 per diluted share, for 2015.
GAAP operating income for 2016 was $1.44 billion, an increase of 20% from 2015. Non-GAAP operating income for 2016 was $2.29 billion, an increase of 9% from 2015.
Operating cash flows for 2016 were $2.38 billion. Free cash flows for 2016 were $2.23 billion.
Cash, cash equivalents and short-term investments were $7.99 billion, and unearned revenue was $5.62 billion as of December 31, 2016. ■