Shares of virtual software developer VMware (VMW - Get Report)  declined on Friday despite fiscal first-quarter earnings that beat analysts' forecasts.

The Palo Alto, Calif.-based company posted fiscal first-quarter net income of $505 million, or $1.21 a share, down from $942 million, or $2.29 a share, in the comparable year-earlier period. The latest first quarter includes an unexpected gain of $132 million from VMware's investment in Pivotal Software, the company said.

Revenue came in at $2.26 billion vs. $2.01 billion a year earlier.

On a non-GAAP basis, the company earned $553 million, or $1.32 a share, on revenue of $2.27 billion. Analysts polled by FactSet were expecting earnings of $1.28 a share and revenue of $2.24 billion.

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VMware, a Dell Technologies portfolio company, said license revenue for the quarter was $869 million. Operating cash flows came to $1.27 billion, while free cash flows for the quarter were $1.2 billion.

In terms of guidance, VMware is maintaining its fiscal 2020 forecast, with expected revenue of $10.03 billion. Analysts are expecting revenue of $10.02 billion with earnings of $6.53 a share.

VMware also said that its board has authorized up to $1.5 billion in stock repurchases through fiscal 2021.

VMware stock slid 6.5% to $178.64 on Friday in trading on the Nasdaq Stock Market.