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VMware profit beats estimates, names new CFOUS-VMWARE-RESULTS:VMware profit beats estimates, names new CFO
(Reuters) - Software maker VMware Inc's <VMW.N> third quarter profit beat estimates on continued demand for virtual servers and cloud computing technologies, but it forecast a weak fourth quarter.
VMware also named Jonathan Chadwick as its new chief financial officer on Tuesday. Chadwick has previously served as Microsoft Corp's <MSFT.O> corporate vice president and as the CFO of Skype.
VMware, a publicly traded division of storage giant EMC Corp <EMC.N>, forecast fourth quarter revenue of $1.26 billion to $1.29 billion, compared with analysts' expectations of $1.28 billion, according to Thomson Reuters I/B/E/S.
Net profit fell to $157 million, or 36 cents per share, from $178 million, or 41 cents per share, a year earlier. Revenue rose 20 percent to $1.13 billion from $942 million.
Excluding items, the company earned 70 cents per share.
Analysts, on average, had forecast $1.13 billion in revenue and earnings of 63 cents per share.
VMware is the biggest maker of the so-called virtualization software that reduces the number of servers companies need. It competes with Oracle Corp <ORCL.O> in that market and with Salesforce.com Inc <CRM.N> in offering "cloud" computing services.
Shares of the Palo Alto, California-based company were up 1 percent at $84.40 in extended trade. It closed at $83.72 on Tuesday on the New York Stock Exchange.
(Reporting by Aurindom Mukherjee in Bangalore; Editing by Richard Chang)
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