VMW's fourth quarter results beat the analyst's estimates.
The Company's press release:
finance.yahoo.com
VMware's 4Q profit more than doubles
VMware's 4Q profit more than doubles; revenue up 37 percent0
On Monday January 24, 2011, 7:33 pm
PALO ALTO, Calif. (AP) -- Software maker VMware Inc. said Monday its fourth-quarter earnings more than doubled from a year ago, boosted by a 37 percent increase in revenue.
The results, along with the company's sales forecast for the quarter ending in March, topped Wall Street forecasts.
VMware helps businesses save money on power and equipment by providing software that allows one computer to function as several. It earned $119.9 million, or 28 cents per share, in the last three months of 2010. That's up from $56.4 million, or 14 cents per share, a year earlier.
Stripping out unusual items, VMware said it would have earned 46 cents per share, up from 31 cents. Analysts, who typically exclude special items, expected 44 cents, according to FactSet.
The company's revenue climbed to $836 million from $608.2 million. Analysts expected $803.9 million in the latest quarter.
Looking ahead, the company projected first-quarter revenue of between $800 million and $820 million, will above the average forecast from analysts, which called for $786.4 million.
But Mark Peek, VMware's chief financial officer, said the company does not anticipate an expansion of its operating margins in 2011. He cited investments the company is making to take advantage of the "generational shift" in information technology.
Shares in VMware were down $3.89, or 4.4 percent, at $83.84 in extended trading
For the full year, VMware's earnings came to $357.4 million, or 84 cents per share, up 81 percent from $197.1 million, or 49 cents per share, the year before. Revenue climbed 41 percent to $2.86 billion from $2.02 billion.
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