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Ah, the joys of operating as a public company. Shares of VMware Inc. [VMW] the virtualization software leader whose initial public offering lit up the IPO market last year, fell more than 25% in after-hours trading after the company announced that it would miss analyst estimates by--wait for it--a full nickel. Run for your lives! VMware's fourth-quarter revenue rose a piddlng 80% to $412 million, while the Street was looking for sales of $417 million, and earning per share came in at $0.19, rather than the consensus forecast of $0.24. Also on Monday, VMware competitor Virtual Iron Software announced a $20 million financing that gives it $65 million in total funding. Virtual Iron is probably breathing a sigh of relief that its round closed--and at an increased valuation--well before the company it's chasing lost a quarter of its market capitalization. - George White See Jan. 28 press release from VMware See Jan. 28 post on Virtual Iron from Tech Confidential For more see Fortune and Silicon Alley Insider
Comments
From: Alain,
Indeed. But VMware's valuation was always questionable, since it was based on unsustainable growth projections--sales and earnings forecasts written into the stock by The Street. Now the chickens are wandering home in the rain. Alain
Posted on:
January 29, 2008 5:54 PM
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A nickel per share is no fraction, rather an over 20% earnings miss to expectations; not to be treated lightly by anyone's estimation...