VMWare (VMW) 1Q:2008 Results

VMWare beats by 20mm on the top line, guides next Q for 55% growth, which equates to 460mm, slightly below 462mm consensus (will prob be interpreted as conservatism). Rumors had abounded they would miss numbers and the stock is very tight to borrow due to large short interest and small float. Consequently, stock is up ~15% on current quarter numbers better than expected. Balance sheet looks pretty clean -- DSO down slightly sequentially (customers paying them promptly) and deferred revenues up healthily in line with revenue. Unlikely it will come in much as shorts are near-term stuck.