Virtualization may be becoming increasingly commoditized as vendors look to differentiate with services and management functionality, but this trend didn’t stop VMware from raking in a handsome profit this past quarter.

On Tuesday, the majority-owned EMC subsidiary reported second quarter earnings of $244.1 million or $0.57 per share, up from $191.7 million in the same period 12 months ago. Excluding items, VMware generated $343.1 million for 79 cents per share, above the consensus analyst estimate of 77 cents.

The company’s second quarter non-GAAP operating margin hit a record high of 33.5 percent. Q2 sales surged too, rising 11 percent to $1.24 billion from $1.12 billion in the prior year. Analysts anticipated revenues of $1.23 billion.

“The second quarter was a strong finish to a solid first half of 2013 for VMware,” said Pat Gelsinger, the chief executive officer of VMware. “We see a significant market opportunity in the second half of 2013 and beyond. VMware continues to succeed because we are uniquely positioned to help customers move from the client-server era to the mobile-cloud era of computing. As we help them bridge to this new world, we’re empowering businesses to capture new levels of efficiency, control and agility.”

VMware believes that its positive momentum will persist in the near term. The company expects revenues of $1.27 billion to $1.30 billion in the third quarter, and $5.12 billion to $5.26 billion in the full year. Analysts forecast sales of $1.28 million and $5.17 billion in Q3 and fiscal year 2013, respectively.

VMware is doubling down on the cloud and the Internet of Things in an effort to maintain its stronghold over the rapidly changing IT landscape. The company sold and spinned-off most of its low-value assets as part of this initiative.