Today VMware, the hottest tech stock of the year, confirmed that its profits increased 125% in the second quarter.
Based in Palo Alto California, the company’s earnings rose to $34.2 million from $15.2 million, an increase of 10 cents a share compared to 5 cents a share for the same period last year.License revenue rose to $204 million over last year’s $113.3 million, while services sales more than doubled to $92.8 million from $43 million a year ago. The company ended the quarter with $280 million in cash and cash equivalents, compared with $94.6 million in the second quarter of 2006.
Sales for the second quarter rose almost 89% to $296.8 million, up from $156.4 million. Shelby Seyrafi, an analyst for Caris & Company has given VMware a target of $90 a share. Forbes recently rated Seyrafi one of the top analyst in the computer technology sector.
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