VMware had $1.33 billion in revenue during 2007, an 88% increase from the year before. But the virtualization software vendor, which reported its latest financial results on Monday, didn't meet Wall Street's fourth-quarter expectations, and its stock price was hit hard in after-hours trading. The Palo Alto, Calif.-based company also toned down its business outlook for this year, forecasting a 50% increase in revenue for 2008 as a whole. VMware officials cited several reasons for the reduced growth rate, including the increasing size of the company's revenue base, which makes it harder to sustain a meteoric rise in sales. But they also acknowledged that there is more competition in the virtualization market, even if it was something of a backhanded compliment to rival vendors. For instance, Mark Peek, VMware's chief financial officer, said during a conference call about the results that there is "an increasing number of competing companies marketing their intent to introduce virtualization products." Read the full story at the source.
Tuesday, 29 January 2008
VMware 88% fourth-quarter increase
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