VMware posted mixed financial results that did come in above expectations but were overshadowed by its pending $69 billion acquisition by chip giant Broadcom.

The virtualization stalwart reported a modest 6% increase in revenues for the second quarter of its 2023 fiscal year compared to the same quarter last year, when it was still under the thumb of then-parent company Dell Technologies. VMware’s management noted that subscription, software-as-a-service (SaaS), and licensed products posted a more robust 15% revenue increase compared to last year, accounting for half of its total revenues.

However, net income dipped 16% for the quarter, stung by increased costs and a near doubling in income tax provisions compared to last year.

Despite the earnings shortfall, net income did come in ahead of expectations.

Like its previous quarter, VMware executives did not hold an earnings call due to the pending Broadcom acquisition. CEO Raghu Raghuram did offer up a tepid quote tied to the earnings, noting that “we are pleased with our performance in Q2.”

VMware’s 40-day “go-shop” provision from the Broadcom deal also expired during the most recent quarter, with apparently no new offers. That provision allowed it to actively “solicit, receive, evaluate, and potentially enter negotiations” on other offers.

VMware did note that the Broadcom deal is still on track to close by the end of its acquirer’s 2023 fiscal year, which is Oct. 31, 2023.

Analyst have been lukewarm to the pending deal, with many citing the potential for Broadcom’s history of customer indifference impacting VMware’s historically cheerier demeanor.

“Despite stock share increases, this isn’t welcome news for VMware customers,” Forrester Senior Analyst Tracy Woo bluntly stated in a report when the deal was initially announced. “For acquired companies, a Broadcom acquisition sparks fear of price hikes, diminished support, and stunted innovation. At a time when VMware customers need to re-establish confidence in the company’s strategy and innovation plans after beloved ex-CEO Pat Gelsinger’s departure, this would be a notable departure from that course.”