VMware 2007 Annual Report Download - page 38

Download and view the complete annual report

Please find page 38 of the 2007 VMware annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 123

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123

Table of Contents
awards of 104,460 restricted stock units. These option grants and awards of restricted stock units did not require registration under the Securities
Act because the grants and awards either did not involve a “sale” of securities as such term issued in Section 2(3) of the Securities Act or were
deemed to be exempt from registration under the Securities Act in reliance on Rule 701 promulgated under Section 3(b) of the Securities Act.
In addition, on June 7, 2007, we awarded 433,216 restricted stock units to our principal financial officer. This award of restricted stock
units was deemed to be exempt from registration under the Securities Act in reliance on Rule 701 promulgated thereunder.
Issuer Purchases of Equity Securities
None.
Use of Proceeds
On August 17, 2007, we completed our IPO of 37,950,000 shares of our Class A common stock pursuant to a registration statement on
Form S-1 (Registration No. 333-142368), including 4,950,000 shares covered by an over-
allotment option granted to the underwriters, which the
U.S. Securities and Exchange Commission declared effective on August 13, 2007. Citigroup Global Markets Inc., J.P. Morgan Securities, Inc.
and Lehman Brothers Inc. acted as the representatives of the underwriters and together with Credit Suisse Securities (USA) LLC, Merrill Lynch,
Pierce, Fenner & Smith Incorporated and Deutsche Bank Securities Inc. acted as joint book-running managers of the offering.
As a result of the IPO, we raised approximately $1,035.2 million in net proceeds to us after deducting underwriting discounts and
commissions of $60.5 million and offering expenses of $4.9 million. In August 2007, we used a portion of the proceeds to repay $350.0 million
of the intercompany note payable owed to EMC and to purchase from EMC our new headquarters for an amount equal to the cost expended by
EMC on our behalf in the construction of those facilities, which was $132.6 million. Pending the use of remaining net proceeds from our IPO,
we have invested the proceeds in a variety of capital preservation investments, generally government securities and cash that are classified as
cash and cash equivalents on our December 31, 2007 balance sheet. There has been no material change in the actual or planned use of proceeds
from the IPO as described in the final prospectus with respect to our IPO filed with the SEC pursuant to Rule 424(b).
34