Virtualization company VMware reported a 32 percent increase in revenue for the third quarter and 28 percent in profit on strong sales of services on Tuesday. The news pushed the company's stock price up 23 percent in after-hours trade.
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 US$472 million, up from US$357.8 million a year ago. Net income rose to US$83 million, or 21 cents a share, from US$65 million, or 18 cents a share.
Excluding stock options and other items, income would have been US$93 million, or 24 cents a share, compared to US$85 million, or 23 cents a share, a year earlier.
The results beat Wall Street expectations of US$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 US$23.20 a share following the announcement, after closing at US$18.73 a share.
This article was first published as a blog on CNET News.com.
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