VMW beats the first quarter consensus numbers:
Company press release
UPDATE 1-VMware profit, forecast beat Street view
Tue Apr 20, 2010 4:38pm EDT
* Q1 non-GAAP EPS at 32 cents vs Street view 28 cents
* Q1 revenue $634 million vs Street view $592.5 million
* Revenue outlook ahead of Street view
* Shares fall 1 percent
BOSTON, April 20 (Reuters) - VMware Inc (VMW.N) posted higher-than-expected quarterly profit and issued a revenue outlook ahead of Street projections, citing strong pent-up demand from businesses which held off on buying its software during the recession.
The top maker of virtualization software that boosts the performance of computer servers reported results on Tuesday in the wake of strong earnings and forecasts from No. 1 chipmaker Intel Corp (INTC.O) and No. 1 technology services company International Business Machines Corp (IBM.N).
VMware posted profit, excluding items, of 32 cents per share, in the first quarter ended March 31, beating the average analyst forecast of 28 cents, according to Thomas Reuters I/B/E/S.
It also gave an upbeat outlook. It projected that full-year revenue would rise 30 percent to 35 percent from last year to a range of $2.625 to $2.725 billion, ahead of the $2.5 billion average analyst forecast.
Palo Alto, California-based VMware's net income rose to $78 million, or 19 cents a share, during the first quarter from $70 million, or 18 cents, a year earlier.
Revenue rose 35 percent to $634 million, beating the average analyst forecast of $592.5 million.
Shares of VMware, which is majority owned by EMC Corp (EMC.N), fell 1 percent to $55.97 in extended trade after closing at $56.52 on the New York Stock Exchange.
VMware's stock has climbed more than 30 percent so far this year, making the company among the most richly valued software makers. It trades for about 40 times next year's average estimated earnings per share.
By comparison, rivals Microsoft Corp (MSFT.O) and Oracle Corp (ORCL.O) trade for about 14 times next year's earnings forecast. (Reporting by Jim Finkle; Editing by Richard Chang)
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