VMware, the biggest maker of software that lets computers run different operating systems, said first-quarter sales and profit exceeded analysts' estimates as more customers renewed contracts.

Sales climbed 14 percent to $1.36 billion from $1.19 billion a year earlier, VMware said in a statement Tuesday. Profit before certain items was 80 cents a share. Analysts had projected profit of 79 cents and sales of $1.35 billion, according to the average estimate compiled by Bloomberg.

Businesses have been renewing software licensing agreements and adding contracts for management tools, Abhey Lamba, an analyst at Mizuho Securities USA with a buy rating on the stock, wrote in a note. VMware, which is majority-owned by EMC, makes virtualization software that lets customers save money by combining multiple applications on a single machine.

Net income rose to $199 million, up 15 percent from $173 million a year ago.

Shares of the Palo Alto-based company rose as much as 4.9 percent in extended trading following the earnings report. The stock had gained less than 1 percent to $105.15 at the close in New York before the report.

VMware has been purchasing companies to diversify its revenue. VMware acquired AirWatch earlier this year for $1.54 billion to bolster its line of management programs for mobile devices. The products are aimed at corporations seeking ways to keep information secure as more employees use handheld gadgets for work. In 2012, VMware paid $1.26 billion for Nicira to gain software that helps networks run more efficiently.



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