VMware quarterly earnings jump, beats estimates
Virtualization software maker posts a 25 percent increase in 4Q revenue and an increase in profits, beating Wall Street's expectations. Shares, however, slide in after hours trading.
VMware reported Monday a 25 percent jump in fourth-quarter revenues and an increase in its quarterly net profit, despite recessionary times gripping the economy.
The virtualization software maker generated fourth-quarter revenues of $515 million, up by double digits over the same time a year ago. That performance beat analysts expectations of $512.3 million, according to Thomson Reuters.
VMware posted fourth-quarter net profits of $111 million, or 29 cents a share, compared with profits of $78 million, or 19 cents a share, a year earlier. Wall Street was expecting earnings of 26 cents a share, according to Thomson Reuters.
"VMware delivered a solid fourth quarter to cap off a successful 2008. We have been executing well in a difficult economy," Paul Maritz, VMware CEO, said in a statement.
But despite beating Wall Street's expectations and posting growth, VMware fell 3.17 percent to $21.40 a share in after-hours trading.
Investors may have been spooked by VMware's warning that the dire global economic conditions make it difficult to predict the company's performance for all of this year, resulting in the company withholding its financial guidance for 2009.
VMware was only willing to provide a forecast for the first quarter of revenues of approximately $475 million.