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Tuesday, October 21, 2014

VMware forecasts weak 4th-qtr revenue, shares fall, (NYSE: VMW)

Software maker VMware Inc forecast current-quarter revenue largely below Wall Street's estimates due to a delay in the closing of a large U.S. government deal and lower bookings in Germany, Russia and Japan in the third quarter.The company's shares fell as much as 6 percent in after-market trade on Tuesday."We were tracking a rather large federal (enterprise license agreement) to coincide with the governments year-end and this opportunity did not close in the quarter," Chief Operating Officer Carl Eschenbach said on a post-earnings call.VMware, which activist investor Elliott Management Corp wants separated from parent EMC Corp, makes software that creates a sort of virtual machine acting like a real computer within an operating system, helping to cut IT costs.

VMware, Inc., is the provider of virtualization infrastructure solutions utilized by organizations to help transform the way they build, deliver and consume information technology (IT) resources. Shares of VMW traded higher by 0.6% or $0.53/share to $88.19. In the past year, the shares have traded as low as $76.51 and as high as $112.89. On average, 1725500 shares of VMW exchange hands on a given day and today's volume is recorded at 4500603.