The Wall Street Journal-20080129-Biotechnology- VMware Revenue Jump Disappoints

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Biotechnology: VMware Revenue Jump Disappoints

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VMware Inc. fourth-quarter net income more than doubled on an 80% jump in revenue, but the virtualization-software maker's shares plunged 26% after hours to $61.18.

VMware's revenue rose to $412.5 million, below the average estimate of $417.4 million. Industry watchers expressed concern that competition is taking its toll.

VMware's profit more than doubled to $78.2 million, or 19 cents a share, from $31 million, or nine cents a share, a year earlier.