VMware Revenue Rose 4%, Worse Than Expected

VMware Inc. on Tuesday reported that revenue rose 4% in the June quarter, worse than expected.

Shares fell about 1.7% in after-hours trading.

The Silicon Valley company is a pioneer in virtualization, a technology that paved the way for cloud-computing, substituting hardware with software and driving down IT costs. It has been expanding operations in the booming mobile-device market, and purchased AirWatch, a mobile-device management company, in January 2014.

VMware is majority-owned by data-storage vendor EMC Corp.

In the latest quarter, revenue rose to $1.52 billion from $1.46 billion a year earlier. Revenue was reduced by a $75.5 million settlement with the Department of Justice.

VMware posted a profit of $172 million, or 40 cents a share, up from $167 million, or 38 cents a year earlier. Excluding the settlement and other items, earnings were 93 cents a share, up from 81 cents in the prior-year period.

Analysts had expected earnings of 91 cents on revenue of $1.59 billion, according to Thomson Reuters.

VMware said last August it would no longer offer long-term financial projections.

Write to Angela Chen at [e-mail]

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