VMWare Profit, Sales Beat Predictions

VMWare reported third-quarter net income of $85 million, or 23 cents per share, on sales of $357.8 million, beating Wall Street predictions.

The infrastructure software maker's shares gained $5.80 at $109.32 in after-hours trade, after slipping $2.63 to finish market hours at $103.52.

Analysts surveyed by Thomson had called for earnings per share of 17 cents, on revenue of $334 million.

Palo Alto, Calif.-based VMWare said that operating income was $91 million, which represents 25 percent of third-quarter revenue and is an increase of 71 percent over the year-ago quarter.

"VMware had a strong quarter by several measures. Increased customer-adoption of VMware Infrastructure was a significant driver in growing our revenues 90%. We completed our IPO. ...And we introduced four brand new products to the market," Diane Greene, president and chief executive of VMware, said in a statement.