Palo Alto software maker VMware reported a solid fourth quarter but offered an outlook for 2013 below expectations, pushing its shares down 11 percent.
VMware, a publicly traded division of data storage equipment maker EMC, said on Monday that it expects revenue of $1.17 billion to $1.19 billion for the first quarter, an increase of 11 percent to 13 percent but less than the $1.25 billion estimated by analysts on average.
For the full year, it aims to reach revenue of $5.23 billion to $5.35 billion, also lower than estimates of $5.42 billion.
"They delivered a strong quarter, but investor eyes are focused on the outlook," FBR analyst Daniel Ives said.
He added that VMware tended to be conservative in its guidance.
Net income in the fourth quarter was $206 million, compared with $200 million a year earlier. Revenue was $1.29 billion, sightly above average analyst expectations of $1.28 billion, according to Thomson Reuters I/B/E/S.
Shares of the company were down 10.6 percent at $87.95 in extended trade.