VMware Inc., the software company with the best-performing U.S. technology initial public offering last year, Monday reported fourth-quarter sales that missed analysts' estimates as competition increased. Shares fell 26%.
The Palo Alto company said sales climbed 80% to $412.5 million, but that trailed the $416.8 million that analysts, on average, had expected. The company, which faces new competition from Microsoft Corp. and Citrix Systems Inc., said it expected sales for the year to increase 50%, which also missed analysts' projections.
Quarterly net income increased to $78.2 million, or 21 cents a share, from $31 million, or 9 cents, a year earlier.
The company, which raised $1.1 billion in its IPO in August, helps customers save money on maintenance and energy by letting a single computer run multiple operating systems.
Shares rose $2.45 to $83 before results were released, but they plunged as much as $22.19 to $60.81 in after-hours trading.