November 29, 2018 / 9:39 PM / 2 years ago

Software firm VMware's revenue rises 13.5 percent

FILE PHOTO - VMware CEO Pat Gelsinger addresses a news conference in Tokyo July 15, 2014. REUTERS/Yuya Shino

(Reuters) - Software maker VMware Inc reported a 13.5 percent jump in third-quarter revenue on Thursday, as the company benefited from strong demand for its software used by customers to boost cloud computing efficiency.

Revenue rose to $2.20 billion from $1.94 billion.

However, VMWare’s net income fell to $334 million, or 81 cents per share, in the three months ended Nov. 2, from $395 million, or 96 cents per share, a year earlier.

Dell Technologies Inc is looking to buy back shares tied to its 81 percent economic stake in VMware and earlier this month sweetened its cash-and-stock offer to $23.9 billion.

The higher offer, which is scheduled to be voted on Dec.11, has now be backed by shareholders including Carl Icahn, who had opposed the initial bid, as well as Elliott Management and Canyon Partners.

A deal would help Dell return to public markets without going through the rigors of a traditional initial public offer process, where its $52.7 billion debt pile could have come under the spotlight.

Reporting by Vibhuti Sharma in Bengaluru; Editing by Sriraj Kalluvila

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