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Table of Contents
VMware, Inc.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
The accompanying notes are an integral part of the consolidated financial statements.
72
For the Year Ended December 31,
2010
2009
2008
Revenues:
License
$
1,401,424
$
1,029,442
$
1,178,142
Services
1,455,919
994,495
702,885
2,857,343
2,023,937
1,881,027
Operating expenses
:
Cost of license revenues
177,458
126,686
88,156
Cost of services revenues
316,257
233,042
215,949
Research and development
652,968
496,552
429,204
Sales and marketing
1,013,281
736,383
654,083
General and administrative
269,386
211,979
181,110
Operating income
427,993
219,295
312,525
Investment income
6,633
8,233
28,301
Interest expense with EMC, net
(4,069
)
(6,958
)
(18,316
)
Other income (expense), net
(14,182
)
2,879
(3,225
)
Income before income taxes
416,375
223,449
319,285
Income tax provision
58,936
26,351
29,152
Net income
$
357,439
$
197,098
$
290,133
Net income per weighted
-
average share, basic for Class A and Class B
$
0.87
$
0.50
$
0.75
Net income per weighted
-
average share, diluted for Class A and Class B
$
0.84
$
0.49
$
0.73
Weighted
-
average shares, basic for Class A and Class B
409,805
394,269
385,068
Weighted
-
average shares, diluted for Class A and Class B
423,446
399,776
397,185
(1) Includes stock
-
based compensation as follows:
Cost of license revenues
$
1,653
$
1,293
$
1,120
Cost of services revenues
18,478
14,874
13,485
Research and development
164,435
121,770
77,992
Sales and marketing
73,146
58,610
49,762
General and administrative
33,979
34,909
24,157
(1)