VMware last night released Q2 2008 earnings report in which it reduced its outlook for the third quarter, investors responded by shedding shares and caused a drop of 14% in share price.

BOSTON (Reuters)—Business software maker VMware Inc issued a revenue outlook on Tuesday that fell far short of expectations, saying customers were delaying purchases or opting for smaller and shorter contracts due to a weak economy.
“In a word: disappointing,” said Jefferies & Co analyst Katherine Egbert. “They might be trying to lower the bar for the new CEO.”
VMware replaced Chief …