April 22, 2008 / 8:23 PM / 11 years ago

VMware profit rises as revenue beats estimates

BOSTON, April 22 (Reuters) - Software maker VMware Inc (VMW.N) reported a higher quarterly profit on Tuesday as its revenue rose at a faster-than-expected clip of 69 percent, sending its shares up 12 percent.

First-quarter net income rose to $43 million, or 11 cents per share, from $41 million, or 12 cents, a year earlier when it had fewer shares outstanding.

Revenue rose to $438.2 million from $258.7 million a year earlier, led by sales of software that allow companies to run multiple “virtual” server computers on a single server.

Analysts had expected it to report revenue of $421.3 million, according to Reuters Estimates.

Its top-selling product, known as ESX Server, allows one server to perform the work of 10 or more machines.

It had quarterly profit excluding items of 22 cents, in line with the Wall Street estimate.

VMware’s stock rose to $64.71 in extended trading, compared to its New York Stock Exchange close of $58.02. The company’s shares made their debut at $29 in August 2007 and reached a high of $125.25 in October. (Reporting by Jim Finkle; Editing by Andre Grenon)

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