VMware tops revenue, profit estimates; shares rise

FILE PHOTO - VMware CEO Pat Gelsinger speaks during a news conference in Tokyo July 15, 2014. REUTERS/Yuya Shino

(Reuters) - Virtualization software maker VMware Inc VMW.N reported better-than-expected revenue and profit, as more customers licensed its products to help ease their move to the cloud.

Shares of Palo Alto, California-based VMware rose 3 percent in trading after the bell on Thursday.

Licensing revenue rose 13.6 percent to $785 million, beating analysts’ estimates of $772.9 million, according to financial data and analytics firm FactSet.

Net income rose to $443 million, or $1.07 per share, in the third quarter ended Nov. 3 from $319 million, or 75 cents per share, a year earlier.

Excluding items, the company earned $1.34 per share.

Revenue rose 11 percent to $1.98 billion.

Analysts on average had expected a profit of $1.27 per share and revenue of $1.96 billion, according to Thomson Reuters I/B/E/S.

Reporting by Arjun Panchadar in Bengaluru; Editing by Anil D’Silva