VMware profits up 28 percent on strong services business
Meanwhile, VMware said it was maintaining its revenue guidance for annual growth of 42 percent to 45 percent , but cautioned that 2008 revenue would likely be at the lower end of the guidance range.
VMware posted third-quarter revenue of $472 million, up from $357.8 million a year ago. Net income rose to $83 million, or 21 cents a share, from $65 million, or 18 cents a share.
Excluding stock options and other items, income would have been $93 million, or 24 cents a share, compared to $85 million, or 23 cents a share, a year earlier.
The results beat Wall Street expectations of $464.6 million in revenue and earnings per share of 20 cents.
"VMware had another solid quarter, despite the challenging economic environment," Chief Executive Paul Maritz said in a statement.
The stock reached $23.20 a share following the announcement, after closing at $18.73 a share.
Elinor Mills covers Internet security and privacy. She joined CNET News in 2005 after working as a foreign correspondent for Reuters in Portugal and writing for The Industry Standard, the IDG News Service, and the Associated Press. E-mail Elinor.
