VMware shares fall after full year outlook expressed

VMware's stock price took another beating on the street today as the company announced significantly lower revenue guidance for the second half of the 2008 fiscal year. Why the gloomy outlook? The company said that customers weren't signing up for enterprise software licensing agreements because of a weakened economy. Total revenue for the second quarter was $456 million, up 54% from the previous year. Second quarter U.S. revenues grew 43% to $240 million from the second quarter of 2007. International revenues grew 68% to $216 million from the second quarter of 2007 driven by strength in Europe and Australia. Software license revenue grew 39% to $284 million from second quarter of 2007. Service revenues, which include support, subscription and professional services, were $172 million, an increase of 85% from the second... [read full story]