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VMware’s revenue beats estimates

By REUTERS
June 02, 2018

SAN FRANCISCO: VMware Inc reported better-than-expected quarterly profit and revenue for the fifth straight quarter on Thursday, as more customers licensed its software products.

The company´s shares rose nearly 4 percent to $142.54 in extended trading.

The Palo Alto, California-based company´s licensing revenue jumped 20.7 percent to $774 million in the first quarter, beating analysts´ average estimate of $727.3 million, according to Thomson Reuters I/B/E/S. VMware´s services revenue, which accounts for more than 60 percent of its total revenue, rose 9.8 percent to $1.23 billion, in line with estimates.

Earlier this month, Dell Technologies Inc said it continues to consider a public offering of common stock or a combination with VMware, in which Dell owns a major stake.

VMware´s net income jumped nearly four-fold to $942 million, or $2.29 per share, in the quarter ended May 4.The profit jump was mostly due to a one-time gain of $781 million from Pivotal Software´s initial public offering.