VMware provided earnings guidance for the first quarter and full year of 2016. For the quarter, the company expects total revenue to be between $1,550,000,000 and $1,600,000,000 or up 3% to 6% year-over-year on both a reported basis and in constant currency. License revenues are expected to be between $555 million to $585 million. At the midpoint, this implies a decline of approximately 1% year-over-year or approximately flat year-over-year on a constant currency basis. The company expects non-GAAP operating margin to be approximately 28% and non-GAAP EPS of between $0.83 and $0.85.


For the full year, the company expects non-GAAP tax rate to be approximately 20%. The company is expecting that cash flow from operations will be approximately $2.25 billion or a growth rate of approximately 18.5% year-over-year. The company now expects capital expenditures to be down slightly from 2015, approximately $270 million. As a result, free cash flow will be approximately $1.98 billion for 2016 or up 26.5%. For the full year 2016, the company expects non-GAAP operating margin to be approximately 31.5%. The company expects total revenues for 2016 to be between $6,785,000,000 and $6,935,000,000 or up 2% to 4% year-over-year. Without the effect of currency, total non-GAAP revenues for 2016 would otherwise be expected to grow 2% to 5% year-over-year. License revenues for the full year are expected to be between $2,660,000,000 and $2,760,000,000. For both reported and constant currency, this is approximately flat year-over-year at the midpoint of the guidance range.