The press release:
finance.yahoo.com
VMW Drops 13.5%: Q4 Beats, Q1, Year Revenue Views Miss
By Tiernan Ray
Barron's
January 28, 2013, 5:01 P.M. ET
Shares of enterprise “virtualization” software vendor VMWare ( VMW) are down $13.48, or 13.7%, at $84.86, after the company this afternoon reported Q4 revenue and earnings per share that narrowly exceeded analysts’ estimates, but forecast this quarter’s revenue below consensus and the full year as well.
Revenue in the three months ended in December rose 22%, year over year, to $1.29 billion, yielding EPS of 81 cents a share.
Analysts had been modeling $1.28 billion and 78 cents.
License revenue for the full year rose 13%, to $2.09 billion.
For the current quarter, the company sees $1.17 billion to $1.19 billion in revenue, on license revenue growth of 11% to 13%. That is below the consensus for $1.25 billion.
For the full year, the company sees $5.23 billion to $5.35 billion, onlicense revenuegrowth of 8% to 11%. that is below the
CEO Pat Gelsinger remarked “2012 was a strong year for VMware, with solid Q4 results despite a tough economic environment.”
“We see a tremendous market opportunity in 2013 and beyond, as we focus on what our customers value most: VMware’s role as a pioneer of virtualization technologies that radically simplify IT infrastructure from the data center to the virtual workspace.”
VMWare is majority owned by EMC ( EMC). EMC shares are down $1.16, or 5%, at $24.05.
VMWare management will host a conference call with analysts at 5 pm, Eastern time, and you can catch the webcast of it right here.
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