Shares of software vendor VMWare (VMW) are down 56 cents, or 0.6%, at $89.52 in late trading despite the company beating Q3 estimates and forecasting the current quarter’s revenue ahead of expectations. The stock has, however, recovered from a loss of 4% or so right after the results were announced.
On a conference call with analysts following the results, CFO Mark Peek said revenue in Q1 of 2012 is expected in a range of $1 billion to $1.03 billion. At the midpoint, that’s below the $1.026 billion the Street is currently estimating. Peek remarked that 2012 is a year of “difficult comparables.”
“As a reminder, during the first quarter of 2011 we closed five transactions in excess of $10 million, and we do not anticipate this benefit in the first quarter of 2012,” said Peek.
Peek said operating margins are not expected to expand in 2012, given the need for the company to make investments in new technology development.
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