VMware Inc. on Tuesday reported that revenue rose 4% in the June
quarter, worse than expected.
Shares fell about 1.7% in after-hours trading.
The Silicon Valley company is a pioneer in virtualization, a
technology that paved the way for cloud-computing, substituting
hardware with software and driving down IT costs. It has been
expanding operations in the booming mobile-device market, and
purchased AirWatch, a mobile-device management company, in January
2014.
VMware is majority-owned by data-storage vendor EMC Corp.
In the latest quarter, revenue rose to $1.52 billion from $1.46
billion a year earlier. Revenue was reduced by a $75.5 million
settlement with the Department of Justice.
VMware posted a profit of $172 million, or 40 cents a share, up
from $167 million, or 38 cents a year earlier. Excluding the
settlement and other items, earnings were 93 cents a share, up from
81 cents in the prior-year period.
Analysts had expected earnings of 91 cents on revenue of $1.59
billion, according to Thomson Reuters.
VMware said last August it would no longer offer long-term
financial projections.
Write to Angela Chen at angela.chen@dowjones.com
Access Investor Kit for EMC Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US2686481027
Access Investor Kit for VMware, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US9285634021
Subscribe to WSJ: http://online.wsj.com?mod=djnwires