VMware's Profits Double; Shares Fall

Shares of VMware

are trading lower in the after-hours following the release of the company's Q3 earnings results. Currently, shares are lower by 4.18%, trading at $85.78; they ended the regular session lower by 3.82%, at $89.52. VMware reported Q3 EPS of $0.53 on revenues of $941.9 million; the Street was looking for $0.50 per share on revenues of $929 million. Revenues increased 31.9% year over year, while profits more than doubled. "VMware's third quarter results were driven by growth across all products. Demand was especially strong in the Asia Pacific markets and we also experienced the seasonal impact of sales to the US Federal Government," said Mark Peek, chief financial officer. "Fourth quarter 2011 revenues are expected to be in the range of $1.03 billion and $1.06 billion, a year-over-year increase of 23% to 27%." VMware, Inc. is a provider of virtualization solutions from the desktop to the data center. The company's suite of virtualization solutions addresses a range of complex information technology problems, that include cost and operational inefficiencies, facilitating access to cloud computing capacity, business continuity, software lifecycle management, and corporate computing device management.