Software maker VMware Inc virtualization Adjusted earnings beat the average analyst estimate for the eighth consecutive quarter due to strong demand for its products, to reduce the cost of moving data to the cloud. The company also has a doubling of the share buyback program 2. Billions of dollars and help sending its shares nearly 2 percent in extended trade.
VMware, as rival Citrix Systems Inc, is software that enables the creation of a virtual machine acting as a real computer with an operating system and helps clients, servers, and storage space more efficiently. The company offers but less-than-expected profit and revenue for the current quarter, citing the impact of a stronger dollar and long-term revenue recognition for the customer is taken in the fourth quarter.
More than 48 percent of the revenue from VMware comes from outside the United States, according to a regulatory filing in November. First quarter adjusted earnings forecasts, the company 83-85 cents per share, well below the average analyst expectations of 89 cents, according to Thomson Reuters I/B/E/S.
VMware revenue forecast of $ 1,490,000-1510000000 average analyst estimate of $ 1.55 billion was also lost. The road will be behind the conservative forecast, which is mostly related to the currency, said FBR Capital Markets analyst Daniel Ives.
Total revenues increased 14.8 percent to 1.70 million in the fourth quarter ended December 31, just ahead of the average analyst estimate $ 1.69 billion increased as income from both licenses and services. Sales of services increased by 16.3 percent to $ 926 million. Contracts made for the maintenance and support of more than 54 percent of total software sales.
Net income fell to 326 million, or 75 cents per share, from $ 335 million, or 77 cents per share, a year earlier. Excluding items, the company earned of $ 1.08 per share, above the average analyst estimate of $ 1.06.VMware mother EMC Corp. said earlier this month that it had reached a standstill agreement with the investor Elliott Management Corp., a ban on hedge funds publicly pushing spin-off of EMC VMware Fusion or look for other opportunities to September.