VMware Spikes on Rosy 2010 Outlook - TheStreet

NEW YORK (

TheStreet

) -- Software maker

VMware's

(VMW) - Get Report

stock retained major gains Tuesday after the company provided a glittering forecast for 2010 and first quarter revenue during its fourth quarter earnings announcement on Monday.

VMware stock spiked at $47.30, and ended the trading day up 12.6%.

On Monday, VMware projected Wall Street analyst-beating revenue for 2010, at $2.45 to $2.55 billion, surpassing the Street consensus estimate of $2.28 billion.

In terms of first quarter revenue growth, VMware projected a range of $580 to $600 million, again surpassing the Street's consensus projection of $530 million.

Overall, VMware revenue in 2010 could surge by 21% to 26%, a vast improvement from the mere 8% growth experienced in 2009.

VMware's bright and optimistic look into the first quarter and 2010 has a lot to do with the signs of a considerable revival of customers' information technology investments. This is subsequent to critical budget constraints in the previous year.

"In January 2009 we would be talking to CIOs and they would say, 'I don't even have a budget yet,'" VMware COO Tod Nielsen told

Reuters.

"Now it's a much more normal course. People are saying; 'Here's my budget. I want to do this.'"

VMWare is majority owned by IT company

EMC

(EMC)

.

-- Reported by Andrea Tse in New York

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