SAN FRANCISCO -- VMware's (VMW) - Get Report second-quarter top line suffered from slower-than-expected growth, the company reported Tuesday.

The virtualization software developer said revenue grew 53.7% to $456.1 million, from $296.8 million in the year-ago period. Analysts were looking for a top line of $458.6 million, according to Thomson Reuters.

In April, the company had projected revenue growth of 55%, or $460.1 million. But two weeks ago, the company revised full-year projections, leaving second-quarter expectations unchanged.

Net income also rose 53% at the Palo Alto, Calif., company to $52.3 million, or 13 cents a share, from $34.2 million, or 10 cents a share, in the year-ago period.

Excluding special items, EPS was 23 cents, in line with analysts' expectations.

The stock was down $3.20, or 8.4%, to $34.77 in extended trading.

Full-year revenue is expected to grow 42% to 45% year over year, implying a range of $1.88 billion to $1.92 billion. Analysts were expecting a top line of $1.96 billion.

For the third quarter, revenue is expected to range from $462 million to $468 million. Analysts were projecting revenue of $497.3 million.

VMware faces a new competitive threat from

Microsoft

(MSFT) - Get Report

, which last month added the commercial release of its virtualization capability to Windows Server. VMware also competes with open-source virtualization provider

Citrix

(CTXS) - Get Report

, which reports earnings Wednesday after the session.