VMware gibt Zahlen für das vierte Quartal und das gesamte Jahr 2010 bekannt

  • Wachstum des Jahresertrags um 41 Prozent auf 2,9 Milliarden US-Dollar; Wachstum im vierten Quartal um 37 Prozent zum Vergleichszeitraum aus 2009 auf 836 Millionen US-Dollar
  • Jährliche Umsatzrendite von 15 Prozent; Nicht-GAAP-Umsatzrendite von 28,5 Prozent mit einer Umsatzrendite aus dem vierten Quartal von 15,6 Prozent; Nicht-GAAP-Umsatzrendite von 29,6 Prozent
  • Wachstum beim Cashflow aus laufender Geschäftstätigkeit in den vergangenen zwölf Monaten um 19 Prozent auf 1,2 Milliarden US-Dollar
  • Zunahme des freien Cashflows um 43 Prozent auf 1,2 Milliarden US-Dollar

 

München, 25. Januar 2011 – VMware, weltweiter Marktführer von Virtualisierungslösungen für Desktopsysteme, Rechenzentren und Cloud-Infrastrukturen, gibt seine Finanzergebnisse für das vierte  Quartal und das gesamte Jahr 2010 bekannt.

„VMware profitierte im vierten Quartal 2010 sowohl von einem Aufwärtstrend bei den Ausgaben als auch von dem großen Momentum für Virtualisierung als zentrale Technologie moderner IT-Infrastrukturen“, sagt Paul Maritz, Präsident und CEO von VMware. „Unsere Aufgabe, unseren Kunden bei der Entwicklung einer hybriden Unternehmens-Cloud durch Lösungen zur Effizienz- und Flexibilitätssteigerung zu helfen, nehmen wir weiterhin sehr ernst.“

„Mit den Rekordergebnissen des viertel Quartals 2010 sind wir sind sehr zufrieden. Dies konnte durch die Stärke aller Produktkategorien und Märkte erreicht werden“, sagt Mark Peek, CFO bei VMware. „Während wir weiter investieren werden, um die Vorteile des Generationenwechsels in der IT nutzen zu können, erwarten wir kein weiteres Wachstum der Umsatzrendite in 2011.“

Die Details zu den Finanzzahlen entnehmen Sie bitte der englischsprachigen Pressemeldung wie folgt:

 

-- Revenues for the fourth quarter were $836 million, an increase of 37% from the fourth quarter of 2009.

-- Operating income for the fourth quarter was $131 million, an increase of 84% from the fourth quarter of 2009. Non-GAAP operating income for the fourth quarter was $248 million, an increase of 57% from the fourth quarter of 2009.

-- Net income for the fourth quarter was $120 million, or $0.28 per diluted share, compared to $56 million, or $0.14 per diluted share, for the fourth quarter of 2009. Non-GAAP net income for the quarter was $198 million, or $0.46 per diluted share, compared to $127 million, or $0.31 per diluted share, for the fourth quarter of 2009.

-- Operating cash flows for the fourth quarter were $407 million, an increase of 43% from the fourth quarter of 2009. Free cash flows for the quarter were $406 million, an increase of 57% from the fourth quarter of 2009.

-- Revenues for 2010 were $2.9 billion, an increase of 41% from 2009.

-- Operating income for 2010 was $428 million, an increase of 95% from 2009. Non-GAAP operating income for 2010 was $813 million, an increase of 68% from 2009.

-- Net income for 2010 was $357 million, or $0.84 per diluted share, compared to $197 million, or $0.49 per diluted share, for 2009. Non-GAAP net income for 2010 was $639 million, or $1.51 per diluted share, compared to $401 million, or $1.00 per diluted share, for 2009.

-- Operating cash flows for 2010 were $1.2 billion, an increase of 19% and free cash flows for the year were $1.2 billion, an increase of 43% from 2009.

-- Cash, cash equivalents and short-term investments were $3.3 billion and deferred revenue was $1.9 billion as of December 31, 2010.

U.S. revenues for 2010 grew 40% to $1.5 billion from 2009. International revenues grew 43% to $1.4 billion from 2009.

License revenues for 2010 were $1.4 billion, an increase of 36% from 2009. Service revenues, which include software maintenance and professional services, were $1.5 billion for 2010, an increase of 46% from 2009.

"VMware clearly benefited in the fourth quarter from both an uptick in spending and the momentum of virtualization as the central technology for modernizing infrastructures," said Paul Maritz, president and chief executive officer. "Our task remains to help our customers evolve to the enterprise hybrid cloud by delivering solutions that increase efficiency while improving business agility."

"We are pleased with our record fourth quarter results, driven by strength across all product categories and geographies," said Mark Peek, chief financial officer. "As we continue to invest to take advantage of the generational shift underway in IT, we do not anticipate expansion of operating margins in 2011. First quarter 2011 revenues are expected to be in the range of $800 and $820 million, an increase of 26% to 29% from the first quarter 2010. Annual 2011 revenue is expected to be in the range of $3.45 and $3.55 billion, an increase of 21% to 24% from 2010, and annual license revenue is expected to grow between 14% and 19%."

Recent Highlights & Strategic Announcements

-- In October 2010, VMware announced expansion of VMware Ready(TM), a program to include mail security solutions that can easily extend the Zimbra(TM) solution with a virtual appliance running on top of VMware vSphere(R). Symantec and Trend Micro were among the first customers to deliver VMware Ready.

-- In October 2010, VMware announced plans to provide a complete suite of cloud-based development and collaboration tools aimed at simplifying the entire application development process. Part of VMware's Cloud Application Platform strategy, Code2Cloud is intended to build on leading open source development projects to deliver a completely unified, setup-free development infrastructure that delivers cloud as a service.

-- In November 2010, VMware announced intent to provide a desktop virtualization solution based on the Cisco Unified Computing System (UCS) and VMware View(TM) 4.5 that will help channel partners accelerate deployment of virtual desktop solutions, scaling to meet customers' business needs and regulatory requirements while reducing risk and total cost of ownership (TCO).

VMware plans to host a conference call today to review its fourth quarter and 2010 results and to discuss its financial outlook. 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 webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 30 days.

Use of Non-GAAP Financial Measures

Reconciliations of non-GAAP financial measures to VMware's financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables entitled "About Non-GAAP Financial Measures."

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding VMware's first quarter and annual revenue projections, expectations regarding 2011 operating margins, the expected role of virtualization and VMware products in efforts by customers to modernize and increase efficiency in IT infrastructures, expectations for the economic environment and opportunities for adjacencies to the VMware vSphere platform, VMware's plans for future investment, shifts in IT implementations, and VMware plans for certain cloud-based development and collaboration tools and desktop virtualization solutions. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. 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) factors that affect timing of license revenue recognition such as product announcements and beta programs; (v) our customers' ability to develop, and to transition to, new products and computing strategies such as cloud computing and desktop virtualization; (vi) the uncertainty of customer acceptance of emerging technology; (vii) changes in the willingness of customers to enter into longer term licensing and support arrangements; (viii) rapid technological and market changes in virtualization software and platforms for cloud and desktop computing; (ix) changes to product development timelines; (x) VMware's relationship with EMC Corporation and EMC's ability to control matters requiring stockholder approval, including the election of VMware's board members; (xi) our ability to protect our proprietary technology; (xii) our ability to attract and retain highly qualified employees; (xiii) the successful integration of acquired companies and assets into VMware; and (xiv) 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 our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K that we may file from time to time, which could cause actual results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.

                               VMware, Inc.

                  CONSOLIDATED STATEMENTS OF CASH FLOWS

                              (in thousands)

                                (unaudited)

                          For the Three Months      For the Year Ended

                           Ended December 31,          December 31,

                        ------------------------  ------------------------

                            2010         2009         2010         2009

                        -----------  -----------  -----------  -----------

Cash flows from

 operating activities:

Net income              $   119,880  $    56,409  $   357,439  $   197,098

Adjustments to

 reconcile net income

 to net cash provided

 by operating

 activities:

  Depreciation and

   amortization              77,090       56,756      260,551      198,486

  Stock-based

   compensation,

   excluding amounts

   capitalized               86,501       67,833      291,691      231,456

  Excess tax benefits

   from stock-based

   compensation             (56,253)     (13,376)    (223,457)     (26,214)

  Other                       6,963        5,435       13,083        2,816

  Changes in assets and

   liabilities, net of

   acquisitions:

    Accounts receivable    (236,362)    (279,392)     (77,121)    (193,610)

    Other assets              3,999       (6,257)     (79,431)     (14,181)

    Due to/from EMC,

     net                    (44,439)     (49,706)     (28,508)     (64,762)

    Accounts payable          4,292       12,699        8,881      (17,886)

    Accrued expenses         92,353       90,393      120,880      124,685

    Income taxes

     receivable from             --           --        2,508      107,927

    Income taxes

     payable                 46,618       21,509       89,439       32,779

    Deferred income

     taxes, net             (48,513)     (14,281)     (56,948)     (40,476)

    Deferred revenue        354,486      335,669      495,382      447,498

                        -----------  -----------  -----------  -----------

Net cash provided by

 operating activities       406,615      283,691    1,174,389      985,616

                        -----------  -----------  -----------  -----------

Cash flows from

 investing activities:

Additions to property

 and equipment              (40,450)     (23,462)    (131,695)    (103,375)

Capitalized software

 development costs          (15,955)     (15,087)     (64,149)     (68,611)

Purchases of

 available-for-sale

 securities                (477,201)          --   (2,101,907)          --

Sales and maturities of

 available-for-sale

 securities                 361,193           --      516,305           --

Purchase of strategic

 investments                 (4,800)      (3,200)      (4,800)     (34,665)

Sale of strategic

 investments                     --           --        2,648           --

Business acquisitions,

 net of cash acquired            --           --     (292,970)    (356,278)

Transfer of net assets

 under common control       (10,580)          --     (185,580)          --

Decrease in restricted

 cash                            --           --          206          549

                        -----------  -----------  -----------  -----------

Net cash used in

 investing activities      (187,793)     (41,749)  (2,261,942)    (562,380)

                        -----------  -----------  -----------  -----------

Cash flows from

 financing activities:

Proceeds from issuance

 of common stock             75,460       61,143      431,306      227,666

Repurchase of common

 stock                      (52,587)          --     (338,527)          --

Excess tax benefits

 from stock-based

 compensation                56,253       13,376      223,457       26,214

Shares repurchased for

 tax withholdings on

 vesting of restricted

 stock                      (16,063)      (6,161)     (86,179)     (31,467)

                        -----------  -----------  -----------  -----------

Net cash provided by

 financing activities        63,063       68,358      230,057      222,413

                        -----------  -----------  -----------  -----------

Net increase (decrease)

 in cash and cash

 equivalents                281,885      310,300     (857,496)     645,649

Cash and cash

 equivalents at

 beginning of the

 period                   1,347,080    2,176,161    2,486,461    1,840,812

                        -----------  -----------  -----------  -----------

Cash and cash

 equivalents at end of

 the period             $ 1,628,965  $ 2,486,461  $ 1,628,965  $ 2,486,461

                        ===========  ===========  ===========  ===========

 

                               VMware, Inc.

                    CONSOLIDATED STATEMENTS OF INCOME

                 (in thousands, except per share amounts)

                                (unaudited)

                          For the Three Months      For the Year Ended

                            Ended December 31,          December 31,

                        ------------------------  ------------------------

                            2010         2009         2010         2009

                        -----------  -----------  -----------  -----------

Revenues:

  License               $   422,343  $   304,206  $ 1,401,424  $ 1,029,442

  Services                  413,318      303,995    1,455,919      994,495

                        -----------  -----------  -----------  -----------

                            835,661      608,201    2,857,343    2,023,937

Operating expenses (1):

  Cost of license

   revenues                  50,735       40,945      177,458      126,686

  Cost of services

   revenues                  89,616       66,561      316,257      233,042

  Research and

   development              177,671      136,262      652,968      496,552

  Sales and marketing       313,045      229,596    1,013,281      736,383

  General and

   administrative            73,980       63,680      269,386      211,979

                        -----------  -----------  -----------  -----------

Operating income            130,614       71,157      427,993      219,295

Investment income             2,604        1,054        6,633        8,233

Interest expense with

 EMC, net                      (966)        (966)      (4,069)      (6,958)

Other income (expense),

 net                         (7,205)      (4,008)     (14,182)       2,879

                        -----------  -----------  -----------  -----------

Income before income

 taxes                      125,047       67,237      416,375      223,449

Income tax provision          5,167       10,828       58,936       26,351

                        -----------  -----------  -----------  -----------

Net income              $   119,880  $    56,409  $   357,439  $   197,098

                        ===========  ===========  ===========  ===========

Net income per

 weighted-average

 share, basic for Class

 A and Class B          $      0.29  $      0.14  $      0.87  $      0.50

Net income per

 weighted-average

 share, diluted for

 Class A and Class B    $      0.28  $      0.14  $      0.84  $      0.49

Weighted-average

 shares, basic for

 Class A and Class B        414,919      400,708      409,805      394,269

Weighted-average

 shares, diluted for

 Class A and Class B        427,883      410,973      423,446      399,776

______

(1) Includes stock-based

 compensation as follows:

Cost of license

 revenues               $       483  $       320  $     1,653  $     1,293

Cost of services

 revenues                     5,877        3,933       18,478       14,874

Research and

 development                 47,143       37,183      164,435      121,770

Sales and marketing          23,545       15,702       73,146       58,610

General and

 administrative               9,453       10,695       33,979       34,909

 

                               VMware, Inc.

                        CONSOLIDATED BALANCE SHEETS

                 (in thousands, except per share amounts)

                                (unaudited)

                                                         December 31,

                                                    -----------------------

                                                       2010        2009

                                                    ----------- -----------

                          ASSETS

Current assets:

  Cash and cash equivalents                         $ 1,628,965 $ 2,486,461

  Short-term investments                              1,694,675      27,360

  Accounts receivable, net                              614,726     534,196

  Due from EMC, net                                      55,481      26,402

  Deferred tax asset, current portion                   100,689      63,360

  Other current assets                                  203,119      44,701

                                                    ----------- -----------

Total current assets                                  4,297,655   3,182,480

Property and equipment, net                             419,065     402,356

Capitalized software development costs, net and

 other                                                  151,945     169,293

Deferred tax asset, net of current portion              149,126     102,529

Intangible assets, net                                  210,928      94,557

Goodwill                                              1,568,600   1,115,769

                                                    ----------- -----------

      Total assets                                  $ 6,797,319 $ 5,066,984

                                                    =========== ===========

         LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

  Accounts payable                                  $    58,913 $    50,566

  Accrued expenses and other                            459,813     334,523

  Deferred revenue, current portion                   1,270,426     908,953

                                                    ----------- -----------

Total current liabilities                             1,789,152   1,294,042

Note payable to EMC                                     450,000     450,000

Deferred revenue, net of current portion                589,668     416,345

Deferred tax liability                                   30,096      60,300

Other liabilities                                       129,960     103,346

                                                    ----------- -----------

    Total liabilities                                 2,988,876   2,324,033

Commitments and contingencies

Stockholders' equity:

 Class A common stock, par value $.01; authorized

  2,500,000 shares; issued and outstanding 116,701

  and 102,785 shares                                      1,167       1,028

 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                           2,955,971   2,263,129

 Accumulated other comprehensive income                  19,635       4,563

 Retained earnings                                      828,670     471,231

                                                    ----------- -----------

    Total stockholders' equity                        3,808,443   2,742,951

                                                    ----------- -----------

      Total liabilities and stockholders' equity    $ 6,797,319 $ 5,066,984

                                                    =========== ===========

 

                                VMware, Inc.

                  RECONCILIATION OF GAAP TO NON-GAAP DATA

               For the Three Months Ended December 31, 2010

                 (in thousands, except per share amounts)

                                (unaudited)

                                           Employer

                                           Payroll

                                 Stock-     Tax on

                                 Based     Employee  Intangible Acquisition

                                 Compen-    Stock      Amortiz-   Related

                       GAAP      sation  Transactions   ation      Items

                     ---------  ---------  ---------  ---------  ---------

Operating expenses:

Cost of license

 revenues            $  50,735       (483)       (21)    (8,375)        --

Cost of services

 revenues            $  89,616     (5,877)      (228)    (1,471)        --

Research and

 development         $ 177,671    (47,143)    (3,299)      (627)        --

Sales and marketing  $ 313,045    (23,545)    (1,496)    (1,664)        --

General and

 administrative      $  73,980     (9,453)      (342)       (38)      (325)

Operating income     $ 130,614     86,501      5,386     12,175        325

Operating margin          15.6%      10.4%       0.6%       1.5%        --

Income before income

 taxes               $ 125,047     86,501      5,386     12,175        325

Income tax provision $   5,167

Tax rate                   4.1%

Net income           $ 119,880     86,501      5,386     12,175        325

Net income per

 weighted-average

 share, basic for

 Class A and Class B

 (3)                 $    0.29  $    0.21  $    0.01  $    0.03  $      --

Net income per

 weighted-average

 share, diluted for

 Class A and Class B

 (4)                 $    0.28  $    0.20  $    0.01  $    0.03  $      --

tables continue below

                               Stock-Based

                               Compensation

                   Capitalized  Included in

                     Software  Capitalized    Tax

                    Development Software   Adjustment  Non-GAAP,

                     Costs (1) Development    (2)     as adjusted

                     ---------  ---------  ---------  ---------

Operating expenses:

Cost of license

 revenues              (28,465)        --         --  $  13,391

Cost of services

 revenues                   --         --         --  $  82,040

Research and

 development            18,776     (2,821)        --  $ 142,557

Sales and marketing         --         --         --  $ 286,340

General and

 administrative             --         --         --  $  63,822

Operating income         9,689      2,821         --  $ 247,511

Operating margin           1.2%       0.3%        --       29.6%

Income before income

 taxes                   9,689      2,821         --  $ 241,944

Income tax provision                          38,383  $  43,550

Tax rate                                                   18.0%

Net income               9,689      2,821    (38,383) $ 198,394

Net income per

 weighted-average

 share, basic for

 Class A and Class B

 (3)                 $    0.02  $    0.01  $   (0.09) $    0.48

Net income per

 weighted-average

 share, diluted for

 Class A and Class B

 (4)                 $    0.02  $    0.01  $   (0.09) $    0.46

 

(1)  For the fourth quarter of 2010, we capitalized $18.8 million (including $2.8 million of stock-based compensation) of costs incurred for the development of software products. Amortization expense from capitalized amounts was $28.5 million for the fourth quarter of 2010.

(2) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above. Our estimated tax rate on non-GAAP income is determined annually and may be re-calculated during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, tax audit closures, material changes in the geographic mix of revenues and expenses and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.

(3) Calculated based upon 414,919 basic weighted-average shares for Class A and Class B.

(4) Calculated based upon 427,883 diluted weighted-average shares for Class A and Class B.

 

                               VMware, Inc.

                  RECONCILIATION OF GAAP TO NON-GAAP DATA

               For the Three Months Ended December 31, 2009

                 (in thousands, except per share amounts)

                                (unaudited)

                                                       Employer

                                                       Payroll

                                                       Tax on

                                                       Employee

                                                       Stock    Intangible

                                         Stock-Based   Trans-    Amortiz-

                                  GAAP   Compensation  actions    ation

                                ---------  ---------  ---------  ---------

Operating expenses:

Cost of license revenues        $  40,945       (320)        (6)    (3,262)

Cost of services revenues       $  66,561     (3,933)      (135)      (266)

Research and development        $ 136,262    (37,183)      (626)       (67)

Sales and marketing             $ 229,596    (15,702)      (283)      (390)

General and administrative      $  63,680    (10,695)      (122)      (124)

Operating income                $  71,157     67,833      1,172      4,109

Operating margin                     11.7%      11.2%       0.2%       0.7%

Income before income taxes      $  67,237     67,833      1,172      4,109

Income tax provision            $  10,828      9,463        135      1,562

Tax rate                             16.1%

Net income                      $  56,409     58,370      1,037      2,547

Net income per weighted-average

 share, basic for Class A and

 Class B (2)                    $    0.14  $    0.15  $      --  $    0.01

Net income per weighted-average

 share, diluted for Class A and

 Class B (3)                    $    0.14  $    0.14  $      --  $    0.01

tables continue below

                                                     Stock-Based

                                                     Compensation

                                         Capitalized Included in

                              Acquisition  Software  Capitalized  Non-GAAP,

                                 Related  Development  Software     as

                                  Items    Costs (1) Development  adjusted

                                ---------  ---------  ---------  ---------

Operating expenses:

Cost of license revenues               --    (27,604)        --  $   9,753

Cost of services revenues              --         --         --  $  62,227

Research and development               --     18,148     (3,061) $ 113,473

Sales and marketing                    --         --         --  $ 213,221

General and administrative           (828)        --         --  $  51,911

Operating income                      828      9,456      3,061  $ 157,616

Operating margin                       --        1.6%       0.5%      25.9%

Income before income taxes            828      9,456      3,061  $ 153,696

Income tax provision                   --      4,738        339  $  27,065

Tax rate                                                              17.6%

Net income                            828      4,718      2,722  $ 126,631

Net income per weighted-average

 share, basic for Class A and

 Class B (2)                    $      --  $    0.01  $    0.01  $    0.32

Net income per weighted-average

 share, diluted for Class A and

 Class B (3)                    $      --  $    0.01  $    0.01  $    0.31

(1)  For the fourth quarter of 2009, we capitalized $18.1 million

(including $3.1 million of stock-based compensation) of costs incurred for

the development of software products. Amortization expense from capitalized

amounts was $27.6 million for the fourth quarter of 2009.

(2) Calculated based upon 400,708 basic weighted-average shares for Class A

and Class B.

(3) Calculated based upon 410,973 diluted weighted-average shares for Class

A and Class B.

                               VMware, Inc.

                  RECONCILIATION OF GAAP TO NON-GAAP DATA

                   For the Year Ended December 31, 2010

                 (in thousands, except per share amounts)

                                (unaudited)

                                         Employer

                                         Payroll

                              Stock-      Tax on

                              Based     Employee    Intangible  Acquisition

                             Compen-      Stock      Amortiz-    Related

                    GAAP      sation  Transactions    ation       Items

                ----------  ----------  ----------  ----------  ----------

Operating expenses:

Cost of license

 revenues       $  177,458      (1,653)        (84)    (23,785)         --

Cost of services

 revenues       $  316,257     (18,478)       (791)     (4,670)         --

Research and

 development    $  652,968    (164,435)     (9,101)     (2,354)         --

Sales and

 marketing      $1,013,281     (73,146)     (4,633)     (3,797)         --

General and

 administrative $  269,386     (33,979)     (1,689)       (152)     (3,499)

Operating

 income         $  427,993     291,691      16,298      34,758       3,499

Operating margin      15.0%       10.2%        0.6%        1.2%        0.1%

Income before

 income taxes   $  416,375     291,691      16,298      34,758       3,499

Income tax

 provision      $   58,936

Tax rate              14.2%

Net income      $  357,439     291,691      16,298      34,758       3,499

Net income per

 weighted-average

 share, basic for

 Class A and

 Class B (3)    $     0.87  $     0.71  $     0.04  $     0.08  $     0.01

Net income per

 weighted-average

 share, diluted for

 Class A and

 Class B (4)    $     0.84  $     0.69  $     0.04  $     0.08  $       --

tables continue below

                            Stock-Based

                           Compensation

               Capitalized Included in

                 Software  Capitalized     Tax

               Development   Software   Adjustment   Non-GAAP,

                 Costs (1) Development     (2)      as adjusted

                ----------  ----------  ----------  ----------

Operating expenses:

Cost of license

 revenues          (99,522)         --          --  $   52,414

Cost of services

 revenues               --          --          --  $  292,318

Research and

 development        71,666     (10,924)         --  $  537,820

Sales and

 marketing              --          --          --  $  931,705

General and

 administrative         --          --          --  $  230,067

Operating income    27,856      10,924          --  $  813,019

Operating margin       1.0%        0.4%         --        28.5%

Income before

 income taxes       27,856      10,924          --  $  801,401

Income tax

 provision                                 103,558  $  162,494

Tax rate                                                  20.3%

Net income          27,856      10,924    (103,558) $  638,907

Net income per

 weighted-average

 share, basic for

 Class A and

 Class B (3)    $     0.07  $     0.03  $    (0.25) $     1.56

Net income per

 weighted-average

 share, diluted for

 Class A and

 Class B (4)    $     0.07  $     0.03  $    (0.24) $     1.51

(1) For the year ended December 31, 2010, we capitalized $71.7 million including $10.9 million of stock-based compensation) of costs incurred for the development of software products. Amortization expense from capitalized amounts was $99.5 million for the year ended December 31, 2010.

(2) We calculate non-GAAP financial information for each fiscal quarter by adjusting for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above. Our estimated tax rate on non-GAAP income is determined annually and may be re-calculated during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, tax audit closures, material changes in the geographic mix of revenues and expenses and other significant events. For the full fiscal year, the tax rate on non-GAAP income shown in the above table represents the weighted-average of the estimated tax rates that were applied to our quarterly non-GAAP financial results during the fiscal year.  Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our actual tax liabilities.

(3) Calculated based upon 409,805 basic weighted average shares for Class A and Class B.

(4) Calculated based upon 423,446 diluted weighted average shares for Class A and Class B.

 

                               VMware, Inc.

                  RECONCILIATION OF GAAP TO NON-GAAP DATA

                   For the Year Ended December 31, 2009

                 (in thousands, except per share amounts)

                                (unaudited)

 

                                                       Employer

                                                       Payroll

                                                       Tax on

                                                       Employee

                                                       Stock    Intangible

                                         Stock-Based   Trans-    Amortiz-

                                  GAAP   Compensation  actions    ation

                                ---------  ---------  ---------  ---------

Operating expenses :

Cost of license revenues        $ 126,686     (1,293)       (17)   (11,669)

Cost of services revenues       $ 233,042    (14,874)      (182)      (266)

Research and development        $ 496,552   (121,770)    (1,684)      (107)

Sales and marketing             $ 736,383    (58,610)      (647)    (1,594)

General and administrative      $ 211,979    (34,909)      (404)      (498)

Operating income                $ 219,295    231,456      2,934     14,134

Operating margin                     10.8%      11.4%       0.2%       0.7%

Other income, net               $   2,879         --         --         --

Income before income taxes      $ 223,449    231,456      2,934     14,134

Income tax provision            $  26,351     43,170        669      5,018

Tax rate                             11.8%

Net income                      $ 197,098    188,286      2,265      9,116

Net income per weighted-average

 share, basic for Class A and

 Class B (2)                    $    0.50  $    0.48  $    0.01  $    0.02

Net income per weighted-average

 share, diluted for Class A and

 Class B (3)                    $    0.49  $    0.47  $    0.01  $    0.02

tables continue below

 

                                                     Stock-Based

                                                     Compensation

                                         Capitalized Included in

                              Acquisition  Software  Capitalized  Non-GAAP,

                                 Related  Development  Software      as

                                  Items    Costs (1) Development  adjusted

                                ---------  ---------  ---------  ---------

Operating expenses :

Cost of license revenues               --    (82,915)        --  $  30,792

Cost of services revenues              --         --         --  $ 217,720

Research and development               --     83,514    (14,903) $ 441,602

Sales and marketing                    --         --         --  $ 675,532

General and administrative         (1,601)        --         --  $ 174,567

Operating income                    1,601       (599)    14,903  $ 483,724

Operating margin                      0.1%        --        0.7%      23.9%

Other income, net                  (5,859)        --         --  $  (2,980)

Income before income taxes         (4,258)      (599)    14,903  $ 482,019

Income tax provision                   --      3,002      2,779  $  80,989

Tax rate                                                              16.8%

Net income                         (4,258)    (3,601)    12,124  $ 401,030

Net income per weighted-average

 share, basic for Class A and

 Class B (2)                    $   (0.01) $   (0.01) $    0.03  $    1.02

Net income per weighted-average

 share, diluted for Class A and

 Class B (3)                    $   (0.01) $   (0.01) $    0.03  $    1.00

(1)  For the year ended December 31, 2009, we capitalized $83.5 million including $14.9 million of stock-based compensation) of costs incurred for the development of software products. Amortization expense from capitalized amounts was $82.9 million for the year ended December 31, 2009.

(2) Calculated based upon 394,269 basic weighted-average shares for Class A and Class B.

(3) Calculated based upon 399,776 diluted weighted-average shares for Class A and Class B.

 

                               VMware, Inc.

                              REVENUE BY TYPE

                              (in thousands)

                                (unaudited)

                             For the Three Months     For the Year Ended

                              Ended December 31,         December 31,

                            ----------------------  ----------------------

                               2010        2009        2010        2009

                            ----------  ----------  ----------  ----------

Revenues:

  License                   $  422,343  $  304,206  $1,401,424  $1,029,442

  Services:

    Software maintenance       345,260     246,236   1,217,064     823,789

    Professional services       68,058      57,759     238,855     170,706

                            ----------  ----------  ----------  ----------

  Total services               413,318     303,995   1,455,919     994,495

                            ----------  ----------  ----------  ----------

                            $  835,661  $  608,201  $2,857,343  $2,023,937

                            ==========  ==========  ==========  ==========

Percentage of revenues:

  License                         50.5%       50.0%       49.0%       50.9%

  Services:

    Software maintenance          41.3%       40.5%       42.6%       40.7%

    Professional services          8.2%        9.5%        8.4%        8.4%

                            ----------  ----------  ----------  ----------

  Total services                  49.5%       50.0%       51.0%       49.1%

                            ----------  ----------  ----------  ----------

                                 100.0%      100.0%      100.0%      100.0%

                            ==========  ==========  ==========  ==========

 

                               VMware, Inc.

        RECONCILIATION OF GAAP CASH FLOWS FROM OPERATING ACTIVITIES

                            TO FREE CASH FLOWS

                      (A NON-GAAP FINANCIAL MEASURE)

          For the Three Months Ended December 31, 2010 and 2009

                              (in thousands)

                                (unaudited)

                                                      For the Three Months

                                                       Ended December 31,

                                                      --------------------

                                                        2010       2009

                                                      ---------  ---------

GAAP cash flows from operating activities             $ 406,615  $ 283,691

Capitalized software development costs                  (15,955)   (15,087)

Excess tax benefits from stock-based compensation        56,253     13,376

Capital expenditures                                    (40,450)   (23,462)

                                                      ---------  ---------

Free cash flows                                       $ 406,463  $ 258,518

                                                      =========  =========

 

                               VMware, Inc.

        RECONCILIATION OF GAAP CASH FLOWS FROM OPERATING ACTIVITIES

                            TO FREE CASH FLOWS

                      (A NON-GAAP FINANCIAL MEASURE)

              For the Year Ended December 31, 2010 and 2009

                              (in thousands)

                                (unaudited)

                                                     For the Year Ended

                                                        December 31,

                                                  ------------------------

                                                      2010         2009

                                                  -----------  -----------

GAAP cash flows from operating activities         $ 1,174,389  $   985,616

Capitalized software development costs                (64,149)     (68,611)

Excess tax benefits from stock-based compensation     223,457       26,214

Capital expenditures                                 (131,695)    (103,375)

                                                  -----------  -----------

Free cash flows                                   $ 1,202,002  $   839,844

                                                  ===========  ===========

 

About Non-GAAP Financial Measures

To provide investors and others with additional information regarding VMware's results, we have disclosed in this press release the following non-GAAP financial measures: non-GAAP operating income, non-GAAP net income, non-GAAP operating margin and trailing twelve-month and fourth quarter free cash flows. 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 differ from GAAP in that they exclude stock-based compensation, employer payroll tax on employee stock transactions, amortization of intangible assets, acquisition related items, and the net effect of the amortization and capitalization of software development costs, each as discussed below.

VMware's management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, to calculate bonus payments and to evaluate VMware's financial performance, the performance of its individual functional groups and the ability of operations to generate cash. Management believes these non-GAAP financial measures reflect VMware's ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in VMware's business, as they exclude expenses that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating VMware's operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. Additionally, management believes information regarding free cash flows provides investors and others with an important perspective on the cash available to make strategic acquisitions and investments, to repurchase shares, to fund ongoing operations and to fund other capital expenditures.

Management believes these non-GAAP financial measures are useful to investors and others in assessing VMware's operating performance due to the following factors:

--  Stock-based compensation. 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.

    Furthermore, unlike cash compensation, the value of stock-based

    compensation is determined using a complex formula that incorporates

    factors, such as market volatility, that are beyond our control.

    Management believes it is useful to exclude stock-based compensation

    in order to better understand the long-term performance of our core

    business and to facilitate comparison of our results to those of peer

    companies. In addition, we account for stock-based compensation under

    GAAP, which requires that we report the excess income tax benefit from

    stock-based compensation as a financing cash flow rather than as an

    operating cash flow. We have added this benefit back to our

    calculation of free cash flows in order to generally classify cash

    flows arising from income taxes as operating cash flows.

 

 

--  Employer payroll tax on employee stock transactions. The amount of

    employer payroll taxes on stock-based compensation is dependent on

    VMware's stock price and other factors that are beyond our control and

    do not correlate to the operation of the business.

 

 

--  Amortization of intangible assets. A portion of the purchase price of

    VMware's acquisitions is generally allocated to intangible assets,

    such as intellectual property, and is subject to amortization.

    However, VMware does not acquire businesses on a predictable cycle.

    Additionally, the amount of an acquisition's purchase price allocated

    to intangible assets and the term of its related amortization can vary

    significantly and are unique to each acquisition. Therefore, VMware

    believes that the presentation of non-GAAP financial measures that

    adjust for the amortization of intangible assets, provides investors

    and others with a consistent basis for comparison across accounting

    periods.

 

 

--  Acquisition related items. Acquisition related items include direct

    costs of acquisitions, such as transaction fees, which vary

    significantly and are unique to each acquisition. Additionally, VMware

    does not acquire businesses on a predictable cycle.

 

 

--  Amortization and capitalization of software development costs.

    Amortization and capitalization of software development costs can vary

    significantly depending upon the timing of products reaching

    technological feasibility and being made generally available. In

    addition, we exclude the capitalization of software from our free cash

    flows to better convey management's view of operating cash flows. If

    we did not capitalize costs under generally accepted accounting

    guidance, our GAAP operating cash flows would be lower as a result of

    additional expense recognized within net income and paid out in cash

    during the period.

 

Additionally, we believe that the non-GAAP financial measure, free cash flows, is meaningful to investors because we review cash flows generated from operations after taking into consideration capital expenditures due to the fact that these expenditures are considered to be a necessary component of ongoing operations. As discussed above, we also exclude capitalization of software development costs and the excess income tax benefit from stock-based compensation from our measure of free cash flows.

The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense that affect VMware's operations. 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 and related employer payroll taxes, the cash salary expense included in costs of revenues and operating expenses would be higher, which would affect VMware's cash position. VMware compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP and should not be considered measures of VMware's liquidity. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited. Management encourages investors and others to review VMware's financial information in its entirety and not rely on a single financial measure.

 

Über VMware

VMware bildet mit seinen Lösungen für die Virtualisierung von Unternehmensinfrastrukturen die Basis für das Computing von morgen. Unternehmen jeder Größe haben mit Virtualisierungslösungen von VMware die Möglichkeit, ihre IT zu verschlanken und im Management zu vereinfachen sowie im Hinblick auf Prozesse und künftige Geschäftsentwicklungen flexibel und hochverfügbar zu gestalten – egal ob auf externen oder eigenen Plattformen. Kunden vertrauen der führenden Virtualisierungsplattform VMware vSphere, um Investitionen und laufende Ausgaben einzusparen, Business Continuity zu garantieren, ein höheres Sicherheitsniveau zu erreichen und ökologische Ziele wie Energieeinsparung umzusetzen. Mit mehr als 190.000 Kunden, über 25.000 Partnern und einem Umsatz von 2,0 Milliarden US-Dollar in 2009 ist VMware weltweiter Marktführer für Virtualisierung, das Thema mit fortwährend oberster Priorität für CIOs.

VMware hat seinen Firmenhauptsitz in Palo Alto, Kalifornien. Die deutsche Niederlassung des Unternehmens befindet sich in München. Weitere Informationen finden Sie unter www.vmware.de.

 

Weitere Informationen

Pressekontakte
VMware Global, Inc.
Zweigniederlassung Deutschland
PR Manager, Central & Eastern Europe
Mathias Raeck
Freisinger Straße 3
85716 Unterschleißheim
Tel.: 089/ 370 617 322
eMail: mraeck@vmware.com
www.vmware.de

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Kirchenstraße 15

81675 München

089 - 41 95 99 - 27 / - 23

089 - 41 95 99 - 12

vmware@maisberger.com

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