VMware Inc. said Tuesday that its second-quarter net income rose 27 percent, helped by growing demand for its virtualization software. The results and the company’s forecast surpassed Wall Street’s expectations, sending its shares up sharply in extended trading.
The company earned $244.1 million, or 57 cents per share, for the three months ended June 30. That was up from $191.7 million, or 44 cents per share, in the 2012 second quarter.
Adjusted earnings were $343 million, or 79 cents per share, in the latest quarter. That’s up 16 percent from $296 million, or 68 cents per share, in the same period a year earlier.
Revenue rose 11 percent to $1.24 billion, from $1.12 billion last year.
Analysts, on average, were expecting adjusted earnings of 77 cents per share, on revenue of $1.23 billion, according to FactSet.
VMware expects third-quarter revenue in the range of $1.27 billion to $1.3 billion. Analysts are expecting $1.28 billion. For the full year, the company expects revenue of $5.12 billion to $5.26 billion, while analysts are predicting $5.18 billion.
VMware’s virtualization software allows one computer to function as multiple machines, which can help companies save energy and other costs.
Shares of Palo Alto, Calif.-based VMWare, which is majority-owned by EMC Corp., gained $7.47, or 10.5 percent, to $78.75 in after-hours trading. The stock closed up $1.38, or 2 percent, at $71.28. Shares have traded between $64.86 and $103.22 in the past 52 weeks, and closed down about 24 percent since the start of the year.