VMW is down five points in after hours:
VMware 2Q profit jumps 53 percent
Tuesday July 22, 4:44 pm ET
VMware 2nd-quarter earnings jump, but sales forecast misses views
PALO ALTO, Calif. (AP) -- Business software maker VMware Inc. said Tuesday its second-quarter profit and revenue grew, helped by growing international sales, but the company's revenue forecast for the current quarter fell shy of expectations.
Shares tumbled $5.29, or 13.9 percent, to $32.68 after-hours electronic trading.
The company, which earlier this month replaced co-founder Diane Greene as chief executive and lowered its sales outlook, earned $52.3 million, or 13 cents per share for the three months ended June 30, up 53 percent from $34.2 million, or 10 cents per share, in the same period a year ago. Adjusted earnings for the latest quarter were 23 cents per share.
Revenue rose 54 percent to $456.2 million from $296.8 million.
Analysts, on average, had expected a profit of 23 cents per share, excluding items, on slightly higher revenue of $458.6 million, according to a poll by Thomson Financial.
VMware makes "virtualization" software, which helps corporate data centers lower their expenses on power and equipment by enabling a single computer to function like multiple machines. Data storage company EMC Corp. owns an 85 percent stake in VMware.
The company forecast third-quarter sales of $462 million to $468 million. This is well below the $497.3 million that Wall Street analysts are expecting.
During the second quarter, U.S. revenue grew 43 percent to $240 million. International revenue rose 68 percent to $216 million, driven by strength in Europe and Australia.
The Palo Alto, Calif.-based company's shares closed up $1.03, or 2.8 percent, at $37.97 in the regular trading session.
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