VMware profit beats Street view, shares rise
Posted by M. Stone 23 January, 2012
BOSTON (Reuters) – Software maker VMware Inc (VMW.N) reported profit ahead of Wall Street expectations and released an outlook ahead of some forecasts, raising hopes that technologies spending will develop this year, even as some warn that the economic outlook is grim.
The outcomes shocked some investors who had been concerned that VMware may miss forecasts after latest disappointments by rivals Oracle Corp (ORCL.O) and Salesforce.com Inc (CRM.N).
"VMware beat the numbers and they beat them in a quite difficult environment," stated Trip Chowdhry, analyst with Global Equities Research.
A division of storage giant EMC Corp (EMC.N), the computer software maker posted fourth-quarter profit, excluding items, of 62 cents per share, ahead of the 60 cent average forecast of analysts polled by Thomson Reuters I/B/E/S.
Revenue rose 27 percent from a year ago to ũ.06 billion, compared with the analyst forecast of ũ.05 billion.
VMware forecast that full-year revenue will rise to in between Ŭ.48 billion and Ŭ.6 billion, compared with the typical analyst estimate of Ŭ.five billion.
The company's shares were quoted at .39 in after-hours trading, up 5.1 percent from their New York Stock Exchange close of .
(Reporting By Jim Finkle Editing by Bernard Orr)
