(Adds details on segment revenue, info on Dell's plan, share move)
March 1 (Reuters) - VMware Inc, with which Dell Technologies Inc is considering a reverse-merger to be a public company, reported quarterly profit and revenue above Wall Street estimates as the company sold more licenses for its software products.
Shares of VMware, in which Dell holds 80 percent stake, fell marginally to $123.40 in volatile trading after the bell on Thursday.
Licensing revenue rose 20 percent to $1.07 billion, beating the average analyst estimate of $1.02 billion.
VMware is witnessing strong demand for its virtualization software that allows a computer or server to perform the work of multiple machines by emulating them, helping businesses boost efficiency and cut costs.
The company's services revenue, which accounts for more than half of its total revenue, rose 8.4 percent to $1.24 billion. That number came in line with the average analyst estimate.
Earlier in the day, CNBC reported Chief Executive Officer of Dell, Michael Dell, and his advisers were working on the details of combining the world's largest privately held technology company with VMware. (http://cnb.cx/2F7envR)
The company's net loss was $440 million, or $1.09 per share, in the fourth quarter ended Feb. 2, compared with a profit of $441 million, or $1.04 per share, a year earlier, mainly due to a tax charge of $970 million.
Excluding one-time items, the Palo Alto, California-based company earned $1.68 per share, while total revenue rose 13.6 percent to $2.31 billion.
Analysts had expected a profit of $1.62 cents per share and revenue of $2.26 billion, according to Thomson Reuters I/B/E/S. (Reporting by Laharee Chatterjee in Bengaluru; Editing by Arun Koyyur)