VMware Changes CEO, Cuts Revenue Forecast
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Business software maker VMware (NYSE: VMW) said on Tuesday it replaced its chief executive and cut its 2008 revenue growth forecast, sending its shares tumbling 25 percent.
The company, majority owned by storage equipment maker EMC (NYSE: EMC), said company founder Diane Greene has been succeeded as president and CEO by former Microsoft (NASDAQ: MSFT) executive Paul Maritz.
VMware also said it now expects revenue for 2008 to be "modestly below" its previous forecast of 50 percent growth over 2007.
VMware shares fell $13.38 to $39.81 in heavy morning New York Stock Exchange trading. EMC shares fell $1.51, or 10 percent, to $13.63.
EMC owns 86 percent of VMware.