May 31, 2018 / 9:02 PM / a year ago

UPDATE 1-VMware's profit, revenue beat estimates for fifth straight quarter

(Adds estimates, share movement)

May 31 (Reuters) - VMware Inc reported better-than-expected quarterly profit and revenue for the fifth straight quarter on Thursday, as more customers licensed its software products.

The company's shares rose nearly 4 percent to $142.54 in extended trading.

The Palo Alto, California-based company's licensing revenue jumped 20.7 percent to $774 million in the first quarter, beating analysts' average estimate of $727.3 million, according to Thomson Reuters I/B/E/S.

VMware's services revenue, which accounts for more than 60 percent of its total revenue, rose 9.8 percent to $1.23 billion, in line with estimates.

Earlier this month, Dell Technologies Inc said it continues to consider a public offering of common stock or a combination with VMware, in which Dell owns a major stake.

VMware's net income jumped nearly four-fold to $942 million, or $2.29 per share, in the quarter ended May 4.

The profit jump was mostly due to a one-time gain of $781 million from Pivotal Software's initial public offering. Pivotal is a business software and cloud company that was formed in 2012 after spinning out of Dell EMC and VMware.

Excluding one-time items, VMware earned $1.26 per share, while total revenue rose 13.8 percent to $2.01 billion.

Analysts on average had expected a profit of $1.14 per share and revenue of $1.96 billion. (Reporting by Munsif Vengattil in Bengaluru; Editing by Maju Samuel)

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