January 28, 2008

VMware Reports Fourth-Quarter and Fiscal Year 2007 Results

Virtualization Leader Grew Fourth Quarter Revenues 80% to $412 Million; Increased 2007 Revenues to $1.33 Billion

PALO ALTO, Calif., Jan. 28 /PRNewswire-FirstCall/ -- VMware, Inc. (NYSE: VMW) the global leader in virtualization solutions from the desktop to the datacenter, today announced financial results for the fourth quarter and full fiscal year 2007:

  • Total revenues for the fourth quarter were $412 million, an increase of 80% compared to the year-ago quarter.
  • GAAP operating income for the fourth quarter was $76 million compared to $37 million in the fourth quarter of 2006. Non-GAAP operating income was $108 million, representing 26% of fourth-quarter revenues and an increase of 72% over the year-ago quarter.
  • GAAP net income for the quarter was $78 million, or $0.19 per diluted share, compared to $31 million, or $0.09 per diluted share, in the year-ago quarter. Non-GAAP net income for the quarter was $103 million, or $0.26 per diluted share. GAAP and non-GAAP net income for the fourth quarter of 2007 include a $0.01 per diluted share benefit from a change in tax rate.
  • Total revenues for the full fiscal year 2007 were $1.33 billion, an increase of 88% compared to 2006.
  • GAAP operating income for the full fiscal year 2007 was $235 million compared to $121 million in 2006. Non-GAAP operating income for the year was $338 million, representing 26% of full-year revenues and an increase of 77% over 2006.
  • GAAP net income for the year was $218 million or $0.61 per diluted share, compared to $86 million, or $0.26 per diluted share, in 2006. Non-GAAP net income was $295 million or $0.82 per diluted share.



"VMware executed at a remarkable pace in 2007 as customer interest and partner attention increased several fold," said Diane Greene, president and chief executive officer of VMware. "We begin 2008 with more than 100,000 customers, 500 technology and consulting partners, nearly 10,000 go-to-market partners, and more than 5,000 employees. As others begin to enter the market, VMware and our partners are continuing to broaden and deepen our highly reliable end-to-end virtualization solutions.

"From the desktop to the datacenter, VMware products are providing significant capital and operational cost savings to customers," continued Greene. "VMware is enabling organizations of all sizes to deploy and manage two to three times the number of application workloads per administrator, while using four to 10 times less data center capacity. VMware's vision for the virtual datacenter is delivering tremendous value to our customers today and our product pipeline for 2008 promises to deliver much more."

VMware plans to host a conference call today to review its fourth-quarter and full-year financial results and provide forward-looking guidance for 2008. The call is scheduled to begin at 2:00 p.m. PT/ 5:00 p.m. ET and can be accessed via the Web at http://ir.vmware.com. The Internet broadcast and related slides will be available live, and a replay will be available following completion of the live broadcast for approximately 30 days.

About VMware

VMware (NYSE: VMW) is the global leader in virtualization solutions from the desktop to the datacenter. Customers of all sizes rely on VMware to reduce capital and operating expenses, ensure business continuity, strengthen security and go green. With 2007 revenues of $1.3 billion, more than 100,000 customers, and more than 10,000 partners, VMware is one of the fastest growing public software companies. VMware is based in Palo Alto, California and on the web at http://www.vmware.com.

VMware is a registered trademark of VMware, Inc. in the United States and/or other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective companies.



Forward-Looking Statements

Statements made in this press release which are not statements of historical fact are forward-looking statements and are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate, but are not limited, to continuing customer adoption and deployment of our products and architecture, achievement of data center efficiencies, our future product introductions and customer perceptions of their value. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in consumer or information technology spending; (iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization market, and new product and marketing initiatives by our competitors; (iv) the ability to develop, and to transition to, new products, the uncertainty of customer acceptance of emerging technology, and rapid technological and market change; (v) changes to product development timelines; (vi) VMware's relationship with EMC Corporation, and EMC's ability to control matters requiring stockholder approval, including the election of VMware's board members; (vi) the ability to protect our proprietary technology; (viii) our ability to attract and retain highly qualified employees; and (ix) fluctuating currency exchange rates. These forward looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including the report on Form 10-Q for the fiscal quarter ended September 30, 2007, which could cause actual results to vary from expectations. VMware disclaims any obligation to update any such forward- looking statements after the date of this release.

Use of Non-GAAP Financial Measures

VMware has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. These non-GAAP financial measures, which are used as measures of VMware's performance, should be considered in addition to, not as a substitute for or in isolation from, measures of VMware's financial performance prepared in accordance with GAAP. These measures differ from GAAP in that they exclude stock-based compensation, amortization of intangible assets, the write-off of in-process research and development, and the net effect of the amortization and capitalization of software development costs under Statement of Financial Accounting Standards No. 86 ("FAS86"), VMware's bases for these adjustments are described below.

VMware's management uses the non-GAAP financial measures referenced in this release and shown in the accompanying schedules to gain an understanding of VMware's comparative operating results (when comparing such results with previous periods or forecasts) and its future prospects and excludes the above-listed items (stock-based compensation, amortization of intangible assets, write-off of in-process research and development, and the net effect of the amortization and capitalization of software development costs under FAS86) from its internal operating plans and measurement of financial performance, including budgeting, calculating bonus payments, and forecasting future periods. These non-GAAP financial measures are used by VMware's management in their financial and operating decision-making because management believes they reflect VMware's ongoing business in a manner that allows meaningful period-to-period comparisons. As the non-GAAP financial measures exclude non-cash expenses that VMware believes are not reflective of ongoing operating results, management believes the non-GAAP financial measures enable management to better analyze trends in its business. VMware's management also believes that these non-GAAP financial measures provide useful information to investors and others (a) in understanding and evaluating VMware's current operating results and future prospects in the same manner as management does, if they so choose, and (b) in comparing in a consistent manner VMware's current financial results with VMware's past financial results.

In addition to the foregoing, management believes that these non-GAAP measures are useful to investors and others in assessing VMware's operating performance due to the following factors:



  • Although stock-based compensation is an important aspect of the compensation of VMware's employees and executives, determining the fair value of the stock-based instruments involves a high degree of judgment and estimation and the expense recorded may bear little resemblance to the actual value realized upon the future exercise or termination of the related stock-based awards. VMware does not believe these non-cash expenses are reflective of ongoing operating results.
  • VMware's amortization of intangible assets includes the effects of EMC's acquisition of VMware in January 2004. Also, VMware does not acquire businesses on a predictable cycle. VMware therefore believes that the presentation of non-GAAP measures that adjust for the amortization of intangible assets and the write-off of in-process research and development, provide investors and others with a consistent basis for comparison across accounting periods and, therefore, are useful to investors and others in helping them to better understand VMware's operating results and underlying operational trends.
  • The amortization and capitalization of software under FAS86 can vary significantly depending upon the timing of products reaching technological feasibility. VMware does not believe that the variance in operating results caused by the net effect of applying FAS86 properly reflect underlying operational trends.

VMware's non-GAAP financial measures may be defined differently than similar terms used by other companies and, accordingly, may not be comparable to similarly-titled non-GAAP financial measures used by other companies. There are significant limitations associated with the use of non-GAAP financial measures. Specifically, the non-GAAP financial measures that exclude stock-based compensation, intangible amortization, in-process research and development, and the net effect of the amortization and capitalization of software development costs under FAS86, do not include all items of income and expense that affect VMware's operations. More specifically, in the case of stock-based compensation, if VMware did not pay out a portion of its compensation in the form of stock-based compensation, the cash salary expense included in costs of revenues and operating expenses would be higher. In the case of intangible amortization, while not directly affecting VMware's cash position, it represents the loss of value of intangible assets over time. As a result, non-GAAP net income and non-GAAP net income per share, which exclude this expense, do not reflect the full economic loss in value of those intangible assets. Management compensates for these limitations by reconciling the non-GAAP financial measures to VMware's financial results as determined in accordance with GAAP, which reconciliations are set forth in the accompanying schedules to this release, in the current report on Form 8-K furnished to the SEC on the date hereof and on http://ir.vmware.com.

     Contacts:

     Michael Haase
     VMware Investor Relations
     mhaase@vmware.com
     650-427-2875

     Greg Eden
     VMware Public Relations
     eden@vmware.com
     650-427-1095

     Andrew Schmitt
     OutCast Communications for VMware
     Andrew@outcastpr.com
     415-392-8282 x706

                                 VMware, Inc.

                         CONSOLIDATED BALANCE SHEETS
                   (in thousands, except per share amounts)

                                             December 31,         December 31,
                                                 2007                 2006
                                             ------------         ------------
                   ASSETS

    Current assets:
     Cash and cash equivalents                $1,231,168             $176,134
     Accounts receivable, less allowance for
      doubtful accounts of $1,603 and $2,139     283,824              193,710
     Due from EMC, net                                 -                2,245
     Deferred tax asset                           54,386               27,656
     Other current assets                         33,956               22,686
                                            ------------            ---------
    Total current assets                       1,603,334              422,431
    Property and equipment, net                  276,983               48,675
    Other assets, net                             71,695               49,912
    Deferred tax asset                            72,249               20,935
    Intangible assets, net                        32,073               43,515
    Goodwill                                     639,366              560,482
                                            ------------            ---------
         Total assets                         $2,695,700           $1,145,950
                                            ============            =========

      LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

    Current liabilities:
     Accounts payable                            $61,503              $44,227
     Accrued expenses                            173,610              103,321
     Due to EMC, net                               2,759                    -
     Income taxes payable to EMC, current portion 68,823               87,598
     Deferred revenue, current portion           363,317              242,603
                                               ---------             --------
    Total current liabilities                    670,012              477,749
    Note payable to EMC                          450,000              800,000
    Deferred revenue, net of current portion     189,479               63,912
    Deferred tax liability                        27,327               30,579
    Income taxes payable to EMC,
     net of current portion                       18,265                4,522
    Commitments and contingencies
    Stockholder's equity (deficit):
     Class A common stock, par value $.01;
      authorized 2,500,000 shares; issued
      and outstanding 82,924 and 32,500 shares       829                  325
     Class B convertible common stock, par
      value $.01; authorized 1,000,000 shares;
      issued and outstanding 300,000 shares        3,000                3,000
     Additional paid-in capital                1,352,788                    -
     Accumulated deficit                         (16,000)            (234,137)
                                               ---------             --------
       Total stockholders' equity (deficit)    1,340,617             (230,812)
                                               ---------             --------
         Total liabilities and stockholders'
          equity (deficit)                    $2,695,700           $1,145,950
                                              ==========           ==========



                                 VMware, Inc.

                        CONSOLIDATED INCOME STATEMENTS
                   (in thousands, except per share amounts)

                                     For the Three Months      For the Year
                                      Ended December 31,    Ended December 31,
                                        2007      2006      2007       2006
                                     --------------------  -------------------
    Revenues:
     License                          $284,282  $161,998   $905,368  $491,902
     Services                          128,193    67,583    420,443   212,002
                                     ---------  --------   --------   -------
                                       412,475   229,581  1,325,811   703,904
    Operating expenses:
     Cost of license revenues           20,330    14,485     80,876    59,202
     Cost of services revenues          46,852    22,765    137,798    64,180
     Research and development           91,562    50,131    285,941   148,254
     Sales and marketing               138,763    80,603    450,195   238,327
     General and administrative         38,494    25,088    135,660    69,602
     In-process research and
      development                            -         -          -     3,700
                                     ---------  --------   --------   -------
    Operating income                    76,474    36,509    235,341   120,639
    Investment income                   11,224       613     22,942     2,497
    Interest income (expense) with
     EMC, net                           (4,496)      627    (17,757)      293
    Other income (expense), net             58        (6)       (48)     (882)
                                     ---------  --------   --------   -------
    Income before taxes                 83,260    37,743    240,478   122,547
    Income tax provision                 5,105     6,764     22,341    36,832
                                     ---------  --------   --------   -------
    Income before cumulative effect
     of a change in accounting
     principle                          78,155    30,979    218,137    85,715
    Cumulative effect of a change in
     accounting principle, net of tax
     of $108                                 -         -          -       175
                                     ---------  --------   --------   -------
    Net income                         $78,155   $30,979   $218,137   $85,890
                                     =========  ========   ========   =======

    Net income per weighted average
     share, basic for Class A and
     Class B:
    Income per share before
     cumulative effect of a change in
     accounting principle                $0.21     $0.09      $0.62     $0.26
    Cumulative effect of a change in
     accounting principle                    -         -          -         -
                                     ---------  --------   --------   -------
    Net income per share                 $0.21     $0.09      $0.62     $0.26
                                     =========  ========   ========   =======

    Net income per weighted average
     share, diluted for Class A and
     Class B:
    Income per share before
     cumulative effect of a change in
     accounting principle                $0.19     $0.09      $0.61     $0.26
    Cumulative effect of a change in
     accounting principle                    -         -          -         -
                                     ---------  --------   --------   -------
    Net income per share                 $0.19     $0.09      $0.61     $0.26
                                     =========  ========   ========   =======

    Weighted average shares, basic
     for Class A and Class B           379,953   332,500    350,493   332,500
    Weighted average shares, diluted
     for Class A and Class B           402,604   332,500    359,189   332,500



                                 VMware, Inc.

                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)

                                    For the Three Months      For the Year
                                     Ended December 31,     Ended December 31,
                                    -------------------     ------------------
                                       2007       2006       2007       2006
                                      ------     ------     ------     ------
    Cash flows from operating
     activities:
    Net income                        $78,155   $30,979    $218,137   $85,890
     Adjustments to reconcile net
      income to net cash provided
      by operating activities:
     Depreciation and amortization     31,565    20,127     104,027    66,573
     In-process research and
      development                           -         -           -     3,700
     Stock-based compensation          33,052    16,206      92,406    51,226
     Other adjustments                    227     4,921        (167)    5,076
     Changes in assets and
      liabilities, net of
      acquisitions:
      Accounts receivable            (119,941)  (80,107)    (88,969)  (97,992)
      Other assets                      1,689     1,543        (977)   (9,076)
      Due to (from) EMC, net           79,440    57,204       5,004   (48,365)
      Accounts payable                 (5,388)   12,666      15,571    31,762
      Accrued expenses                 50,819    22,437      61,620    60,904
      Income taxes payable to EMC     (78,209)  (37,847)    (17,812)   (6,006)
      Deferred income taxes, net      (33,412)  (20,202)    (78,486)  (21,888)
      Deferred revenue                125,577    96,889     242,082   158,059
                                     ---------  --------   ---------  --------
    Net cash provided by operating
     activities                       163,574   124,816     552,436   279,863
                                     ---------  --------   ---------  --------

    Cash flows from investing
     activities:
    Additions to property and
     equipment, net                   (45,101)  (10,614)   (136,395)  (52,574)
    Purchase of headquarters
     facilities from EMC                    -         -    (132,564)        -
    Capitalized software
     development costs                (14,877)   (4,458)    (47,735)  (32,523)
    Business acquisitions, net of
     cash acquired                     (7,017)        -     (82,535)  (46,541)
    Decrease (increase) in
     restricted cash                      673     1,385      (4,466)  (10,744)
                                     ---------  --------   ---------  --------
    Net cash used in investing
     activities                       (66,322)  (13,687)   (403,695) (142,382)
                                     ---------  --------   ---------  --------

    Cash flows from financing
     activities:
    Proceeds from Class A common
     stock issued in IPO, net of
     issuance costs                         -         -   1,035,233         -
    Proceeds from Class A common
     stock issued to Intel
     Capital, net of issuance
     costs                                  -         -     218,300         -
    Proceeds from exercises of
     stock options                          -         -       2,760         -
    Repayment of note payable to
     EMC                                    -         -    (350,000)        -
                                     ---------  --------   ---------  --------
    Net cash provided by financing
     activities                             -         -     906,293         -
                                     ---------  --------   ---------  --------
    Net increase in cash and cash
     equivalents                       97,252   111,129   1,055,034   137,481
    Cash and cash equivalents at
     beginning of the period        1,133,916    65,005     176,134    38,653
                                     ---------  --------   ---------  --------
    Cash and cash equivalents at
     end of the period             $1,231,168  $176,134  $1,231,168  $176,134
                                     ---------  --------   ---------  --------



                                 VMware, Inc.

                   RECONCILIATION OF GAAP TO NON-GAAP DATA
                 For the Three Months Ended December 31, 2007
                   (in thousands, except per share amounts)
                                 (unaudited)
                                                           Stock-based
                                                          Compensation
                                                           Included in
                                                Capitalized  Capitalized
                             Stock-   Intangible  Software   Software
                             Based     Amorti-    Develop-   Develop-    Non-
                             Compen-   zation      ment       ment    GAAP, as
                        GAAP sation   & Other    Costs(1)    Costs    adjusted
                       ------------------------------------------------------

    Operating
     expenses:
     Cost of
      license
      revenues          $20,330    (236) (5,027) (10,478)    -       $4,589
     Cost of
     services
      revenues          $46,852  (2,462)    144      -       -      $44,534
     Research and
      development       $91,562 (15,257)  1,996   17,246  (2,369)   $93,178
     Sales and
      marketing        $138,763  (9,510)    137      -       -     $129,390
     General and
      administrative    $38,494  (5,587)     -       -       -      $32,907

    Operating income    $76,474  33,052   2,750   (6,768)  2,369   $107,877

    Income before taxes $83,260  33,052   2,750   (6,768)  2,369   $114,663

    Income tax
     provision           $5,105   6,484   1,015   (1,267)    479    $11,816
    Quarterly tax rate     6.1%                                       10.3%

    Net income          $78,155  26,568   1,735   (5,501)  1,890   $102,847

    Net income per
     weighted
     average
     share, basic
     for Class
     A and Class B        $0.21   $0.07   $0.00   $(0.01)  $0.00      $0.27

    Net income per
      weighted
     average  share,
     diluted for Class A
     and
     Class B              $0.19   $0.07   $0.00   $(0.01)  $0.00      $0.26

    Weighted average
      shares,
     basic for Class
     A and Class B      379,953 379,953 379,953  379,953 379,953    379,953
    Weighted average
     shares, diluted
     for Class A
     and Class B        402,604 402,604 402,604  402,604 402,604    402,604



    (1)  For the fourth quarter of 2007, VMware capitalized $17.2 million
         (including $2.4 million of stock-based compensation) of costs
         incurred for the development of software products. Amortization
         expense from previously capitalized amounts was $10.5 million for the
         fourth quarter of 2007.



                                 VMware, Inc.

                   RECONCILIATION OF GAAP TO NON-GAAP DATA
                 For the Three Months Ended December 31, 2006
                   (in thousands, except per share amounts)
                                 (unaudited)

                                                           Stock-based
                                                           Compensation
                                                           Included in
                                                Capitalized Capitalized
                             Stock-              Software   Software
                              Based   Intangible  Develop-   Develop-   Non-
                             Compen-   Amorti-     ment      ment     GAAP, as
                       GAAP  sation    zation    Costs(1)    Costs    adjusted
                   ----------------------------------------------------------

    Operating
     expenses:
     Cost of
      license
      revenues       $14,485      (37) (5,532)   (8,063)        -        $853

     Cost of
      services
      revenues       $22,765     (718)    -          -          -     $22,047
     Research and
      development    $50,131   (9,001)    -       5,131      (673)    $45,588
     Sales and
      marketing      $80,603   (3,643)   (548)       -          -     $76,412
     General and
      administrative $25,088   (2,807)   (372)       -          -     $21,909

    Operating
      income         $36,509   16,206   6,452     2,932       673     $62,772

    Income before
     taxes           $37,743   16,206   6,452     2,932       673     $64,006

    Income tax
     provision        $6,764    4,257   2,453     1,115       177     $14,766

    Net income       $30,979   11,949   3,999     1,817       496     $49,240

    Net income per
     weighted average
     share, basic
     for Class A and
     Class B           $0.09    $0.04   $0.01     $0.01     $0.00       $0.15


    Net income per
     weighted average
     share, diluted for
     Class A and
     Class B           $0.09   $0.04   $0.01     $0.01     $0.00       $0.15

    Weighted average
     shares, basic for
     Class A and
     Class B         332,500 332,500 332,500   332,500   332,500     332,500
    Weighted average
     shares, diluted
     for Class A and
     Class B         332,500 332,500 332,500   332,500   332,500     332,500


    (1) For the fourth quarter of 2006, VMware capitalized $5.1 million
        (including $0.7 million of stock-based compensation), of costs
        incurred for the development of software products. Amortization
        expense from previously capitalized amounts was $8.1 million for the
        fourth quarter of 2006.




                                 VMware, Inc.

                   RECONCILIATION OF GAAP TO NON-GAAP DATA
                     For the Year Ended December 31, 2007
                   (in thousands, except per share amounts)
                                 (unaudited)


                                                           Stock-based
                                                          Compensation
                                                           Included in
                                               Capitalized  Capitalized
                             Stock-  Intangible   Software   Software
                             Based     Amor-    Develop-     Develop-   Non-
                             Compen-  tization    ment        ment    GAAP, as
                      GAAP   sation   & Other    Costs(1)    Costs   adjusted
                   -----------------------------------------------------------
    Operating
     expenses:
     Cost of
      license
      revenues         $80,876    (558) (20,810) (36,407)     -       $23,101
     Cost of
      services
      revenues        $137,798  (6,070)     144      -        -      $131,872
     Research
      and
      development     $285,941 (42,934)   1,996   56,840  (9,105)    $292,738
     Sales and
      marketing       $450,195 (26,288)  (1,787)     -        -      $422,120
     General and
      administrative  $135,660 (16,556)  (1,476)     -        -      $117,628

    Operating income  $235,341  92,406   21,933  (20,433)  9,105     $338,352

    Income before
     taxes            $240,478  92,406   21,933  (20,433)  9,105     $343,489

    Income tax
     provision         $22,341  21,227    8,113   (5,256)  2,091      $48,516

    Annual tax rate       9.3%                                          14.1%

    Net income        $218,137  71,179   13,820  (15,177)  7,014     $294,973

    Net income per
     weighted average
     share, basic for
     Class A and
     Class B             $0.62   $0.20    $0.04   $(0.04)  $0.02        $0.84

    Net income per
     weighted average
     share, diluted
     for Class A and
     Class B             $0.61   $0.20    $0.04   $(0.04)  $0.02        $0.82

    Weighted average
     shares, basic for
     Class A and
     Class B           350,493 350,493  350,493  350,493 350,493      350,493

    Weighted average
     shares, diluted
     for Class A and
     Class B           359,189 359,189  359,189  359,189 359,189      359,189


    (1) For the year ended December 31, 2007, VMware capitalized $56.8 million
        (including $9.1 million of stock-based compensation) of costs incurred
        for the development of software products. Amortization expense from
        previously capitalized amounts was $36.4 million for the year
        ended December 31, 2007.



                                 VMware, Inc.

                   RECONCILIATION OF GAAP TO NON-GAAP DATA
                     For the Year Ended December 31, 2006
                   (in thousands, except per share amounts)
                                 (unaudited)

                                                            Stock-based
                                                            Compensation
                                                   Capital- Included in
                                                     ized   Capitalized
                                 Stock-  IPR&D and  Software  Software
                                 Based  Intangible  Develop-  Develop-   Non-
                                 Compen-  Amorti-    ment      ment   GAAP, as
                          GAAP   sation   zation   Costs(1)   Costs   adjusted
                      --------------------------------------------------------
    Operating expenses:
     Cost of license
      revenues          $59,202      (99) (21,840) (22,299)     -     $14,964
     Cost of services
      revenues          $64,180   (2,384)     -        -        -     $61,796
     Research and
      development      $148,254  (26,342)     -     43,012  (10,489) $154,435
     Sales and
      marketing        $238,327  (12,020)  (2,188)     -        -    $224,119
     General and
      administrative    $69,602  (10,381)  (1,494)     -        -     $57,727
     In-process research
      and development    $3,700      -     (3,700)     -        -        $-

    Operating income   $120,639   51,226   29,222  (20,713)  10,489  $190,863

    Income before
     taxes             $122,547   51,226   29,222  (20,713)  10,489  $192,771

    Income tax
     provision          $36,832   13,457    9,698   (7,871)   2,758   $54,874

    Net income          $85,890   37,769   19,524  (12,842)   7,731  $138,072

    Net income per
     weighted average
     share, basic for
     Class A and
     Class B              $0.26    $0.11    $0.06   $(0.04)   $0.02     $0.42

    Net income per
     weighted average
     share, diluted for
     Class A and
     Class B              $0.26    $0.11    $0.06   $(0.04)   $0.02     $0.42

    Weighted average
     shares, basic for
     Class A and
     Class B            332,500  332,500  332,500  332,500  332,500   332,500
    Weighted average
     shares, diluted for
     Class A and
     Class B            332,500  332,500  332,500  332,500  332,500   332,500

    (1) For the year ended December 31, 2006, VMware capitalized $43.0 million
        (including $10.5 million of stock-based compensation) of costs
        incurred for the development of software products. Amortization
        expense from previously capitalized amounts was $22.3 million for the
        year ended December 31, 2006.



SOURCE VMware, Inc. - 01/28/2008

CONTACT:
Michael Haase, Investor Relations,
+1-650-427-2875, mhaase@vmware.com, or
Greg Eden, Public Relations,
+1-650-427-1095, eden@vmware.com, both of VMware; or
Andrew Schmitt of OutCast Communications,
+1-415-392-8282, ext. 706, Andrew@outcastpr.com, for VMware
Web site: http://www.vmware.com


Close window | Back to top

Copyright 2014 VMware, Inc.