VMware, Inc. (NYSE:VMW) released its earnings report for the three months through June today after the markets closed on Wall Street. The firm revealed earnings of $0.79 per share for the second quarter of 2013 on revenue totaling $1.24 billion. On today’s market, shares in the company trended upward, ending the day at 71.23.

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Analysts following the information technology company were looking for earnings per share of 77 cents for the three month period covered in today’s report. Revenue for the period was expected to come in at $1.2 billion. In the same quarter back in 2012, VMware, Inc. (NYSE:VMW) earned 68 cents per share on revenues totaling $1.1 billion.

VMware earnings disaster

Earlier on in 2013, VMware, Inc. (NYSE:VMW) released an earnings report that has undermined the value of the company for the months since. The company’s January earnings report saw the company’s shares drop from more than $98 to just over $77 in a single day. A second damaging earnings report, delivered in April, sent the company’s shares down again, leaving the firm’s shares trading at around $70 per share through June and July.

The real problem with the company’s earnings reports was the guidance it gave for the rest of 2013. The VMware Inc. (NYSE:VMW) delivered so far in 2013 both beat on earnings and stayed in line on revenue, but both of the reports suggested that the rest of 2013 was going to be dangerous. After the release of this earnings report, investors will be hoping that the firm’s future is priced in to its stock price at this stage after a 24% drop so far in 2013.

VMware competing in a crowded cloud market

VMware, Inc. (NYSE:VMW) offers enterprise services in the IT area, a rapidly growing business, but one that has been crowded by entrants from many different companies in recent years. International Business Machines Corp. (NYSE:IBM), Amazon.com, Inc. (NASDAQ:AMZN) and many others are heavily involved in the market, and the competition is getting heartier.

VMware has not seemed up to the challenge so far, and the company will need to change if it wants to stay in the market and return value to its shareholders. VMware Inc. (NYSE:VMW) needs to reassure investors about its future, before investors begin a flight from the company for fear that it cannot compete in the services business.

VMware, Inc. (NYSE:VMW) will host an earnings call at 5 pm this afternoon in order to discuss today’s earnings report.