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VMware grows Q4 Revenues 80% to $412 Million; Increased 2007 Revenues to $1.33 Billion

VMware, Inc. (NYSE: VMW - News) 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.



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