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VMware's Results Add to Investor Concern Over Dell-EMC Deal

VMware Inc.’s third-quarter profit topped analysts’ estimates, underscoring its status as a key asset in the sale of parent company EMC Corp., while weak bookings added to anxiety among shareholders about the software maker’s independence.

Profit was $1.02 a share excluding costs on sales of $1.67 billion, VMware said in a statement Tuesday. Analysts on average had projected profit of $1 and revenue of $1.66 billion, according to data compiled by Bloomberg. The company, which makes software used to consolidate applications on corporate servers, announced some preliminary results earlier this month, when Dell Inc. unveiled its $67 billion deal to buy EMC.

Even though executives of all three companies said the combination will boost revenue for VMware, shares in the Palo Alto, California-based company have declined 4.9 percent since the agreement was announced on Oct. 12 and dropped 16 percent since news of the merger leaked on Oct. 7. Carl Eschenbach, VMware’s chief operating officer, said the company saw “mixed booking...