VMware Doubles Profits, Shares Plunge

VMware announced their FY2007 financial results during a conference call earlier this afternoon. Despite Q4 2007 results of $412 million -- a total 80% higher than from the same period in FY2006 -- VMware share prices tumbled after the news. Some news outlets have reported that VMware's sales results missed expectations set by analysts, while a pessimistic mood in the market over the continuing mortgage crisis and fears of a looming economic recession undoubtedly contributed to the drubbing of VMware stock.

According to a VMware news release announcing the earnings, VMware's total revenues were $1.33 billion for the 2007 fiscal year, which translates into an 88% increase over FY 2006.

VMware President and CEO Diane Green said in a prepared statement that "VMware executed at a remarkable pace in 2007 as customer interest and partner attention increased several fold...[and] we begin 2008 with more than 100,000 customers, 500 technology and consulting partners, nearly 10,000 go-to-market partners, and more than 5,000 employees. As others begin to enter the market, VMware and our partners are continuing to broaden and deepen our highly reliable end-to-end virtualization solutions."

According to a story over at the Wall Street Journal by Ben Charney and Kathy Swiff, VMware's stock price had fallen precipitously in after-hours trading.