Software maker VMware Inc’s third quarter profit beat estimates on continued demand for virtual servers and cloud computing technologies, but it forecast a weak fourth quarter.VMware also named Jonathan Chadwick as its new chief financial officer on Tuesday. Chadwick has previously served as Microsoft Corp’s corporate vice president and as the CFO of Skype.
VMware, a publicly traded division of storage giant EMC Corp, forecast fourth quarter revenue of $1.26 billion to $1.29 billion, compared with analysts’ expectations of $1.28 billion, according to Thomson Reuters I/B/E/S.
Net profit fell to $157 million, or 36 cents per share, from $178 million, or 41 cents per share, a year earlier. Revenue rose 20 per cent to $1.13 billion from $942 million.
Excluding items, the company earned 70 cents per share.
Analysts, on average, had forecast $1.13 billion in revenue and earnings of 63 cents per share.
VMware is the biggest maker of the so-called virtualization software that reduces the number of servers companies need. It competes with Oracle Corp in that market and with Salesforce.com Inc in offering “cloud” computing services.
Shares of the Palo Alto, California-based company were up 1 per cent at $84.40 in extended trade. It closed at $83.72 on Tuesday on the New York Stock Exchange.
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