VMware Shares Slip After Guidance

This story has been updated with additional information on VMware's enterprise license agreements, license bookings, AirWatch and the company's guidance.

NEW YORK (TheStreet) -- Virtualization and cloud infrastructure firm VMware (VMW) beat first-quarter earnings by a penny and exceeded on the top line. But shares slipped as the company maintained guidance during its conference call.

"Our strong financial results reflect VMware's unique position in helping customers transform their IT infrastructure," CEO Pat Gelsinger said in the earnings statement. "As the industry shifts from client server computing to the mobile-cloud era, customers are choosing our solutions because we have the most complete vision and offering for navigating this evolving world."

First-quarter net income was $199 million, up 14% from the first quarter of 2013. Meanwhile non-GAAP net income for the quarter was $348 million, or 80 cents per share, compared with 74 cents a share a year ago.

Revenues for the first quarter were $1.36 billion, an increase of 14% from the same time last year. Analysts, on average, were expecting first-quarter EPS of 79 cents on revenue of $1.353 billion, according to Thomson Reuters.

The company said during its earnings call that during the quarter, renewal rates on enterprise license agreements (ELA) reached a record, in-quarter. License bookings for end-user computing were up over 35%, including those of mobile device management provider AirWatch, which the company bought for $1.54 billion in January.

First-quarter cloud management license bookings were up more than 30% year over year in the first quarter, while the hybrid cloud business grew greater than 100%.

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