VMware profit narrowly beats estimates, shares down

Tue Jan 28, 2014 4:20pm EST

Jan 28 (Reuters) - Virtualization software maker VMware Inc's quarterly profit came in slightly above analysts' average estimate, helped by higher revenue from license sales.

The company's shares dropped 4 percent to $91.00 in extended trading.

Net income rose to $335 million, or 77 cents per share, in the fourth quarter, from $206 million, or 47 cents per share, a year earlier.

Excluding items, the company earned $1.01 per share.

Analysts on average had expected earnings of $1.00 per share, according to Thomson Reuters I/B/E/S.

The company had preannounced revenue of $1.48 billion last week, in line with analysts' estimates.

VMware's virtualization software enables the creation of a virtual machine that acts like a real computer with an operating system. This helps companies use server and storage space more efficiently and reduce IT costs.

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