Tuesday, July 08, 2008

VMware warns on revenue, replaces CEO Greene [BusinessWeek]

The roller coaster part was probably fun on the way up, but at least VMWare is still trading about its IPO price, and its market cap of ~$14.8B at the moment still looks pretty good compared with the ~$635M EMC paid when it acquired VMWare during late 2003 (as one comparison point, for example, Sun's mkt cap is currently ~$8.1B...)

VMware, which is controlled by data-management provider EMC Corp., has fallen mightily since a blockbuster partial spinoff last year. After its initial public offering in August, VMware stock tripled from its $29 opening price in the first month -- the biggest technology IPO since Google Inc. went public in 2004.

But since hitting a 52-week high of $125.25 in October, the shares have lost nearly 70 percent of their value.

VMware warns on revenue, replaces CEO Greene

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