VMware Inc. said Monday its profit rose 67 percent in the fourth quarter on higher license and service revenue.

The company, based in Palo Alto, Calif., makes "virtualization" software, which companies use to get more out of their computer servers. VMWare's profit climbed to $200.4 million, or 46 cents per share. A year ago it reported profit of $119.9 million, or 28 cents per share. Excluding one-time items, the company said it earned 62 cents per share in the latest quarter. Its revenue grew 27 percent, to $1.06 billion from $835.7 million

Analysts expected VMware to report a profit of 60 cents per share and $1.05 billion in revenue, according to estimates compiled by FactSet.

License revenue rose 22 percent to $513.8 million and service revenue increased 32 percent to $546.5 million.

VMware said its profit more than doubled for all of 2011, rising to $723.9 million, or $1.68 per share, from $357.4 million, or 84 cents per share in 2010. Revenue grew 32 percent to $3.77 billion from $2.86 billion.

The company expects its revenue to grow by 19 to 22 percent in 2012, to a range of $4.48 billion to $4.60 billion. VMware expects license revenue to grow 11 to 16 percent, implying revenue of $2.04 billion to $2.14 billion. It forecast first-quarter total revenue of $1.02 billion to $1.04 billion.

Analysts expect VMware to post $4.50 billion in revenue in 2012, including $1.02 billion in the first quarter.

Shares of VMware fell $2.12, or 2.4 percent, to close at $86. It rose $4.89, or 5.7 percent, to $90.89 in aftermarket trading.