Server virtualisation specialist VMWare saw its revenues rise 69 per cent in the first quarter of 2008, with sales hitting $438m (£220m) up from $259m in the first quarter of 2007.

Quarterly net income remained relatively flat however, rising slightly from $41m to $43m in the same period, though still beating analyst estimates.

Despite the prospect of Microsoft taking more of the server virtualisation market when it releases its HyperV product in late summer, VMWare is bullish about its financial outlook for the next three quarters. The company has forecast that it will retain 50 per cent revenue growth for the rest of 2008.

VMWare is a division of storage giant EMC, which will shortly post its own financial results.