The bottom just fell out of virtualization software firm VMware: Shares are down some 26% to $39.33 after the company ankled its CEO and said full-year revenues will fall short of expectations.
VMware (VMW) President and CEO Diane Greene is leaving the company, effective immediately, and is being replaced by Paul Maritz (pictured). Maritz comes from EMC, which spun off VMware last year, where he was briefly President of EMC’s Cloud division. EMC bought his startup Pi Corporation in February; he is also a 14-year Microsoft (MSFT) vet, where he worked on Windows.
VMware also warned of trouble ahead: “While VMware is not updating guidance for Q2, we expect revenues for the full year of 2008 will be modestly below the previous guidance of 50% growth over 2007.”