* First-quarter adjusted profit $0.74/share vs est $0.70
* Revenue $1.19 bln vs est $1.18 bln
* Sees second-quarter revenue $1.21-$1.24 bln vs est $1.25
* Shares down 7 pct in extended trading
April 23 Cloud computing software maker VMware
Inc forecast current-quarter revenue that fell short of
analysts' estimates, sending its shares down 7 percent in
VMware, controlled by data storage equipment maker EMC Corp
, said it expects revenue in the range of $1.21 billion
to $1.24 billion for the second quarter.
Analysts on average were expecting revenue of $1.25 billion,
according to Thomson Reuters I/B/E/S.
VMware announced a joint venture with EMC in March, dubbed
Pivotal Inc, that would include VMware's Cloud Foundry
application service, as well as EMC's Greenplum data analytics
software and other products.
Pivotal started operations from April 1.
All revenue and costs associated with VMware's contribution
to Pivotal will be eliminated from VMware's financial statements
from the second quarter and about $70 million in unearned
revenue will be transferred to Pivotal in the quarter, Chief
Financial Officer Jonathan Chadwick said on an analyst call.
VMware reaffirmed the full-year outlook that it disclosed in
an investor meeting last month but did not announce more widely.
At that meeting, VMware said it had lowered its full-year
revenue outlook to $5.12-$5.24 billion from $5.23-$5.35 billion
to account for the transfer of revenue to Pivotal.
Analysts were expecting revenue of $5.21 billion, but it was
not clear if all had taken the revenue shift into consideration.
"They kept the full-year number and guided to a number which
is below the Street for Q2, which basically means that they
expect more business in the second half than they expect in Q2,"
said analyst Rajesh Ghai of Craig-Hallum Capital Group.
VMware said net income fell to $173.6 million, or 40 cents
per share, in the first quarter ended March 31, from $191.4
million, or 44 cents per share, a year earlier.
Excluding items, the company earned 74 cents per share.
Revenue rose 13 percent to $1.19 billion.
Analysts on average had expected a profit of 70 cents per
share on revenue of $1.18 billion.
VMware shares were down 7 percent at $70.65 in after-hours
trading. The company's stock closed up 3 percent at $75.70 in
regular trading on the Nasdaq on Tuesday.