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Table of Contents
VMware, Inc.
CONSOLIDATED INCOME STATEMENTS
(in thousands, except per share amounts)
The accompanying notes are an integral part of the consolidated financial statements.
59
For the Year Ended December 31,
2007
2006
2005
Revenues:
License
$
905,368
$
491,902
$
287,006
Services
420,443
212,002
100,068
1,325,811
703,904
387,074
Operating expenses:
Cost of license revenues
80,876
59,202
40,340
Cost of services revenues
137,798
64,180
24,852
Research and development
285,941
148,254
72,561
Sales and marketing
450,195
238,327
124,964
General and administrative
135,660
69,602
30,762
In
-
process research and development
—
3,700
—
Operating income
235,341
120,639
93,595
Investment income
22,942
2,497
497
Interest income (expense) with EMC, net
(17,757
)
293
2,067
Other expense, net
(48
)
(882
)
(819
)
Income before taxes
240,478
122,547
95,340
Income tax provision
22,341
36,832
28,565
Income before cumulative effect of a change in accounting principle
218,137
85,715
66,775
Cumulative effect of a change in accounting principle, net of tax of $108
—
175
—
Net income
$
218,137
$
85,890
$
66,775
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
$
0.62
$
0.26
$
0.20
Cumulative effect of a change in accounting principle
—
—
—
Net income per share
$
0.62
$
0.26
$
0.20
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
$
0.61
$
0.26
$
0.20
Cumulative effect of a change in accounting principle
—
—
—
Net income per share
$
0.61
$
0.26
$
0.20
Weighted average shares, basic for Class A and Class B
350,493
332,500
332,500
Weighted average shares, diluted for Class A and Class B
359,189
332,500
332,500