VMware Reports Fourth Quarter and Fiscal Year 2020 Results

Delivers annual revenue of $10.81 billion; growth of 12% year-over-year

Subscription and SaaS increased 52% year-over-year, representing 18% of total revenue in Q4

PALO ALTO, Calif.--(BUSINESS WIRE)--$VMW--VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, today announced financial results for the fourth quarter and full fiscal year 2020:


Quarterly Review

  • Revenue for the fourth quarter was $3.07 billion, an increase of 11% from the fourth quarter of fiscal 2019.
  • The combination of subscription and SaaS and license revenue was $1.59 billion, an increase of 14% from the fourth quarter of fiscal 2019.
  • Subscription and SaaS revenue for the fourth quarter was $556 million, an increase of 52% year-over-year.
  • GAAP net income for the fourth quarter was $321 million, or $0.76 per diluted share, compared to $496 million, or $1.17 per diluted share, for the fourth quarter of fiscal 2019. Non-GAAP net income for the fourth quarter was $868 million, or $2.05 per diluted share, up 9% per diluted share compared to $795 million, or $1.87 per diluted share, for the fourth quarter of fiscal 2019.
  • GAAP operating income for the fourth quarter was $250 million, a decrease of 58% from the fourth quarter of fiscal 2019. Non-GAAP operating income for the fourth quarter was $1.05 billion, an increase of 12% from the fourth quarter of fiscal 2019.
  • Operating cash flow for the fourth quarter was $1.09 billion. Free cash flow for the fourth quarter was $1.02 billion.
  • Total revenue plus sequential change in total unearned revenue grew 11% year-over-year.
  • The combination of subscription and SaaS and license revenue plus sequential change in unearned subscription and SaaS and license revenue grew 17% year-over-year.

Annual Review

  • Revenue for fiscal year 2020 was $10.81 billion, an increase of 12% from fiscal 2019.
  • The combination of subscription and SaaS and license revenue for fiscal 2020 was $5.06 billion, an increase of 16% from fiscal year 2019.
  • Subscription and SaaS revenue for fiscal year 2020 was $1.88 billion, an increase of 44% from fiscal year 2019.
  • GAAP net income for fiscal year 2020 was $6.41 billion, or $15.08 per diluted share, compared to $1.65 billion, or $3.92 per diluted share, for fiscal 2019. Non-GAAP net income for fiscal year 2020 was $2.66 billion, or $6.24 per diluted share, up 4% per diluted share compared to $2.52 billion, or $5.98 per diluted share, for fiscal 2019.
  • GAAP operating income for fiscal year 2020 was $1.44 billion, a decrease of 20% from fiscal 2019. Non-GAAP operating income for fiscal year 2020 was $3.26 billion, an increase of 11% from fiscal 2019.
  • Operating cash flow for fiscal year 2020 was $3.87 billion. Free cash flow for fiscal year 2020 was $3.59 billion.
  • Cash was $2.91 billion, and unearned revenue was $9.27 billion, as of January 31, 2020.

“VMware delivered over $10 billion in revenue for the first time in company history in fiscal 2020, along with continued double-digit topline growth,” commented Pat Gelsinger, CEO, VMware. “Our results demonstrate the power of our broad-based portfolio and a strategy that continues to resonate with our customers.”

“We signed a record number of enterprise agreements above $10 million in Q4, including a significant increase in the value of subscription and SaaS offerings in the top ten agreements,” said Zane Rowe, executive vice president and CFO, VMware. “Subscription and SaaS revenue grew 52% year-over-year in the fourth quarter to $556 million and is expected to continue strong growth in fiscal 2021.”

Growth rates in Q4 results include the recast of prior period financial information due to the Pivotal acquisition, which was accounted for as a transaction between entities under common control in accordance with generally accepted accounting principles (GAAP). Effective with the fourth quarter of fiscal year 2020, VMware is presenting a new revenue line item in its earnings reports entitled “subscription and SaaS revenue.” Accordingly, reported revenue consists of the following three components: license, subscription and SaaS, and services. Previously, subscription and SaaS revenue was referred to as “hybrid cloud subscription and SaaS revenue” and was allocated between license and services revenue. The cost of subscription and SaaS revenue was included in both cost of license revenue and cost of services revenue in prior periods and has been reclassified to conform with current period presentation.

To assist investors in their understanding of the impact of (1) combined Pivotal with VMware results in the recast financial statements and (2) reclassifying revenue from two to three categories, the company has posted a slide deck on its Investor Relations webpage at ir.vmware.com. The slide deck details the impact of Pivotal adjustments and the reclassification of revenues on VMware’s fourth quarter of fiscal 2020 results to enable investors to compare VMware’s performance in the quarter to the fourth quarter guidance that VMware provided on its previous quarter earnings call on November 26, 2019, which excluded Pivotal, as the acquisition had not been completed at that time, and did not separate out subscription and SaaS revenue. The slide deck also includes a similar comparison of VMware’s full year fiscal 2020 cash flows to November 26, 2019 guidance and a tabular summary of the differences in key metrics between VMware’s financial statements as previously reported and as recast for the seven fiscal quarters beginning with the first quarter of fiscal 2019 and for full year fiscal 2019.

Business Highlights & Strategic Announcements

  • VMware completed the acquisition of Pivotal on December 30, 2019. The combination of Pivotal’s developer-centric offerings with VMware’s upstream Kubernetes run-time infrastructure and management tools will allow VMware to deliver a comprehensive enterprise solution that enables dramatic improvements in developer productivity in the creation of modern applications.
  • At the RSA Conference, VMware advanced its Intrinsic Security Strategy for the world’s digital infrastructure by announcing “VMware Advanced Security for Cloud Foundation,” a new security suite that enables customers to replace legacy security solutions and deliver unified protection across private and public clouds. Product update announcements also included enhancements to the VMware Carbon Black Cloud and VMware Secure State.
  • VMware showcased how communications service providers (CSPs) across the world—including Millicom, Singtel, Telecom Italia, Telia Company and TIM Brasil—are adopting VMware’s Telco Cloud platform to accelerate time to revenue, automate service lifecycle and simplify operations management. VMware also unveiled new capabilities across its Telco and Edge Cloud product portfolio, including innovations to its telco cloud core, edge and RAN offerings.
  • VMware acquired Nyansa, which enables VMware to deliver an end-to-end network visibility, monitoring and remediation solution within VMware SD-WAN by VeloCloud that can proactively predict client problems, optimize application and network performance and better assure the behavior of critical IoT devices.
  • In the fourth quarter, VMware received further recognition from leading industry analysts:
    • VMware was positioned as a leader in The Forrester Wave™: Unified Endpoint Management, Q4 2019, which evaluated 13 unified endpoint management (UEM) vendors. VMware’s intelligence-driven digital workspace platform, VMware Workspace ONE, was top ranked in the current offering and strategy categories. The platform also received the highest possible score in the product roadmap, roadmap execution, and partner ecosystem criteria, as well as in all of the report’s market presence criteria (i.e., customer count, Windows 10 customer count, devices under management, and revenue).1
    • VMware was positioned as a leader in three recent IDC MarketScape reports related to the End-User Computing (EUC) space.2

Recast Financial Statements and Addition of Subscription and SaaS Revenue Line item

On December 30, 2019, VMware completed its acquisition of Pivotal. As Pivotal was an entity under common control, pursuant to GAAP, financial statements for prior periods are required to be recast as if the entities were combined for all periods presented. Recast quarterly results on a GAAP and non-GAAP basis, consolidated statements of income and key cash flow metrics for fiscal year 2019 and fiscal year 2020 are included in this earnings press release. All comparisons of fiscal year and fourth quarter 2020 financial metrics to prior periods in this press release are comparisons to the recast financial metrics for the respective prior period.

To assist investors in their understanding of the impact of combining Pivotal with VMware results in the recast financial statements on prior periods and to compare current results to the financial results originally reported for prior periods, VMware is including tables attached to this press release showing the impact of Pivotal adjustments on its previously reported (1) GAAP and non-GAAP net income for each fiscal quarter for fiscal years 2019 and 2020 and for fiscal years 2019 and 2018; (2) fiscal year 2019 balance sheet; and (3) GAAP cash flows from operating activities and free cash flows for each fiscal quarter for fiscal years 2019 and 2020 and for fiscal years 2019 and 2018.

Additionally, effective with the fourth quarter of fiscal year 2020, VMware is presenting a new revenue line item in its earnings reports entitled “subscription and SaaS revenue.” Accordingly, reported revenue consists of the following three components: license, subscription and SaaS, and services. Previously, subscription and SaaS revenue was referred to as “hybrid cloud subscription and SaaS revenue” and was allocated between license and services revenue. In light of VMware’s recent acquisitions, management determined that revenue recognized from subscription and SaaS offerings will be presented separately. The new subscription and SaaS revenue line item includes revenue from VMware’s VCPP cloud offerings that are billed to customers on a consumption basis, revenue from Pivotal and other offerings that are billed on a subscription basis as well as revenue from SaaS offerings such as Workspace ONE and VMware Cloud on AWS. Revenue from prior periods has been reclassified to conform to the fourth quarter fiscal year 2020 presentation and is reflected in the recast quarterly financial statements for fiscal years 2019 and 2020 included in the tables accompanying this earnings press release.

The company will host a conference call today at 1:30 p.m. PT/ 4:30 p.m. ET to review financial results and business outlook. A live web broadcast of the event will be available on the VMware investor relations website at http://ir.vmware.com. Slides will accompany the web broadcast. The replay of the webcast and slides will be available on the website for two months. In addition, six quarters of historical data for unearned revenue will also be made available at http://ir.vmware.com in conjunction with the conference call.

1 “The Forrester Wave™: Unified Endpoint Management, Q4 2019”

2 IDC MarketScape: Worldwide Unified Endpoint Management Software 2019–2020 Vendor Assessment (doc # US45355119, November 2019); IDC MarketScape: Worldwide Enterprise Mobility Management Software 2019-2020 Vendor Assessment (doc # US45353719, November 2019); and IDC MarketScape: Worldwide Enterprise Mobility Management Software for Ruggedized/IoT Device Deployments 2019–2020 Vendor Assessment (Doc #US45353819, November 2019)

About VMware

VMware software powers the world’s complex digital infrastructure. The company’s cloud, app modernization, networking, security, and digital workspace offerings help customers deliver any application on any cloud across any device. Headquartered in Palo Alto, California, VMware is committed to being a force for good, from its breakthrough technology innovations to its global impact. For more information, please visit https://www.vmware.com/company.html

Additional Information

VMware’s website is located at www.vmware.com, and its investor relations website is located at http://ir.vmware.com. VMware’s goal is to maintain the investor relations website as a portal through which investors can easily find or navigate to pertinent information about VMware, all of which is made available free of charge. The additional information includes: materials that VMware files with the SEC; announcements of investor conferences, speeches and events at which its executives talk about its products, services and competitive strategies; webcasts of its quarterly earnings calls, investor conferences and events (archives of which are also available for a limited time); additional information on its financial metrics, including reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures; press releases on quarterly earnings, product and service announcements, legal developments and international news; corporate governance information; other news, blogs and announcements that VMware may post from time to time that investors may find useful or interesting; and opportunities to sign up for email alerts and RSS feeds to have information pushed in real time.

VMware, Pivotal, VMware Advances Security, Carbon Black, VMware Secure State, Nyansa, VeloCloud, Workspace ONE, and VMware Cloud are registered trademarks or trademarks of VMware, Inc. or its subsidiaries in the United States and other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective organizations.

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 titled “About Non-GAAP Financial Measures.”

Forward-Looking Statements

This press release contains forward-looking statements including, among other things, statements regarding expected benefits to customers of VMware’s acquisitions of Pivotal and Nyansa, as well as products, solutions and services, including in areas of modern applications, security, telco and edge cloud, and VMware SD-WAN by Velocloud. 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: (1) adverse changes in general economic or market conditions; (2) delays or reductions in consumer, government and information technology spending; (3) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization software and cloud, end user and mobile computing, and security industries, as well as new product and marketing initiatives by VMware’s competitors; (4) the ability to successfully integrate into VMware acquired companies and assets and smoothly transition services related to divested assets from VMware; (5) rapid technological changes in the virtualization software and cloud, end user, security and mobile computing industries; (6) VMware’s customers’ ability to transition to new products, platforms, services, solutions and computing strategies in such areas as containerization, modern applications, intrinsic security and networking, cloud, digital workspaces, virtualization and the software defined data center, and the uncertainty of their acceptance of emerging technology; (7) VMware’s ability to enter into, maintain and extend strategically effective partnerships and alliances; (8) the continued risk of litigation and regulatory actions, including those related to the Carbon Black and Pivotal acquisitions; (9) VMware’s ability to protect its proprietary technology; (10) changes to product and service development timelines; (11) VMware’s relationship with Dell Technologies and Dell’s ability to control matters requiring stockholder approval, including the election of VMware’s board members and matters relating to Dell’s investment in VMware; (12) VMware’s ability to attract and retain highly qualified employees; (13) the ability of VMware to realize synergies from Dell; (14) risks associated with cyber-attacks, information security and privacy; (15) disruptions resulting from key management changes; (16) risks associated with international sales such as fluctuating currency exchange rates and increased trade barriers; (17) changes in VMware’s financial condition; (18) geopolitical changes such as Brexit and increased tariffs and trade barriers that could adversely impact our non-U.S. sales; and (19) other business effects, including those related to industry, market, economic, political, regulatory and global health conditions, such as the coronavirus (COVID-19) public health emergency. These forward-looking statements are made as of the date of this press release, 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 VMware’s 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 INCOME

(amounts in millions, except per share amounts, and shares in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

January 31,

 

February 1,

 

January 31,

 

February 1,

 

 

2020

 

2019(1)

 

2020

 

2019(1)

Revenue(2):

 

 

 

 

 

 

 

 

License

 

$

1,034

 

 

$

1,027

 

 

$

3,181

 

 

$

3,042

 

Subscription and SaaS

 

556

 

 

367

 

 

1,877

 

 

1,303

 

Services

 

1,483

 

 

1,365

 

 

5,753

 

 

5,268

 

Total revenue

 

3,073

 

 

2,759

 

 

10,811

 

 

9,613

 

Operating expenses(2)(3):

 

 

 

 

 

 

 

 

Cost of license revenue

 

50

 

 

40

 

 

166

 

 

150

 

Cost of subscription and SaaS revenue

 

106

 

 

86

 

 

400

 

 

280

 

Cost of services revenue

 

317

 

 

292

 

 

1,233

 

 

1,122

 

Research and development

 

676

 

 

596

 

 

2,522

 

 

2,173

 

Sales and marketing

 

1,003

 

 

889

 

 

3,677

 

 

3,230

 

General and administrative

 

592

 

 

258

 

 

1,293

 

 

846

 

Realignment and loss on disposition

 

79

 

 

 

 

79

 

 

9

 

Operating income

 

250

 

 

598

 

 

1,441

 

 

1,803

 

Investment income (loss)

 

20

 

 

(7

)

 

60

 

 

161

 

Interest expense

 

(41

)

 

(34

)

 

(149

)

 

(134

)

Other income (expense), net

 

10

 

 

9

 

 

86

 

 

(1

)

Income before income tax

 

239

 

 

566

 

 

1,438

 

 

1,829

 

Income tax provision (benefit)

 

(76

)

 

87

 

 

(4,918

)

 

239

 

Net income

 

315

 

 

479

 

 

6,356

 

 

1,590

 

Less: Net loss attributable to non-controlling interests

 

(6

)

 

(17

)

 

(56

)

 

(60

)

Net income attributable to VMware, Inc.

 

$

321

 

 

$

496

 

 

$

6,412

 

 

$

1,650

 

Net income per weighted-average share attributable to VMware, Inc. common stockholders, basic for Classes A and B

 

$

0.77

 

 

$

1.19

 

 

$

15.37

 

 

$

3.99

 

Net income per weighted-average share attributable to VMware, Inc. common stockholders, diluted for Classes A and B

 

$

0.76

 

 

$

1.17

 

 

$

15.08

 

 

$

3.92

 

Weighted-average shares, basic for Classes A and B

 

417,225

 

 

417,499

 

 

417,058

 

 

413,769

 

Weighted-average shares, diluted for Classes A and B

 

424,007

 

 

424,630

 

 

425,235

 

 

421,131

 

__________

 

 

 

 

 

 

 

 

(1) Adjusted to reflect the recast of prior period information due to the Pivotal Software, Inc. ("Pivotal") acquisition, which was accounted for as a transaction between entities under common control.

(2) Effective the fourth quarter of fiscal 2020, management decided to separately present revenue recognized from subscription and SaaS offerings. Historically, subscription and SaaS revenue was allocated between license and services revenue. Prior period amounts have been reclassified to conform with current period presentation. Historically, cost of subscription and SaaS revenue was allocated between cost of license revenue and cost of services revenue in prior year. Prior period amounts have been reclassified to conform with current period presentation.

(3) Includes stock-based compensation as follows:

Cost of license revenue

 

$

 

 

$

 

 

$

1

 

 

$

1

 

Cost of subscription and SaaS revenue

 

3

 

 

2

 

 

13

 

 

7

 

Cost of services revenue

 

24

 

 

16

 

 

83

 

 

58

 

Research and development

 

130

 

 

105

 

 

459

 

 

391

 

Sales and marketing

 

91

 

 

63

 

 

293

 

 

226

 

General and administrative

64

34

168

117

 

VMware, Inc.

CONSOLIDATED BALANCE SHEETS

(amounts in millions, except per share amounts, and shares in thousands)

(unaudited)

 

 

 

 

 

January 31,

 

February 1,

 

2020

 

2019(1)

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

2,915

 

 

$

3,532

 

Short-term investments

 

 

19

 

Accounts receivable, net of allowance for doubtful accounts of $7 and $6(1)

1,883

 

 

1,723

 

Due from related parties, net

1,457

 

 

1,090

 

Other current assets

436

 

 

305

 

Total current assets

6,691

 

 

6,669

 

Property and equipment, net

1,280

 

 

1,162

 

Other assets

2,266

 

 

1,088

 

Deferred tax assets

5,556

 

 

290

 

Intangible assets, net

1,172

 

 

966

 

Goodwill

9,329

 

 

7,418

 

Total assets

$

26,294

 

 

$

17,593

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

208

 

 

$

153

 

Accrued expenses and other

2,151

 

 

1,664

 

Current portion of long-term debt and other borrowings

2,747

 

 

 

Unearned revenue

5,218

 

 

4,339

 

Total current liabilities

10,324

 

 

6,156

 

Note payable to Dell

270

 

 

270

 

Long-term debt

2,731

 

 

3,972

 

Unearned revenue

4,050

 

 

3,100

 

Income tax payable

817

 

 

889

 

Operating lease liabilities

746

 

 

 

Other liabilities

347

 

 

315

 

Total liabilities

19,285

 

 

14,702

 

Contingencies

 

 

 

Stockholders’ equity:

 

 

 

Class A common stock, par value $0.01; authorized 2,500,000 shares; issued and outstanding 110,484 and 110,715 shares

1

 

 

1

 

Class B convertible common stock, par value $0.01; authorized 1,000,000 shares; issued and outstanding 307,222 shares and 300,000 shares

3

 

 

3

 

Additional paid-in capital

2,000

 

 

2,959

 

Accumulated other comprehensive loss

(4

)

 

(2

)

Retained earnings (Accumulated deficit)

5,009

 

 

(1,096

)

Total VMware, Inc. stockholders’ equity

7,009

 

 

1,865

 

Non-controlling interests

 

 

1,026

 

Total stockholders’ equity

7,009

 

 

2,891

 

Total liabilities and stockholders’ equity

$

26,294

 

 

$

17,593

 

__________

 

 

 

(1) Adjusted to reflect the recast of prior period information due to the Pivotal acquisition, which was accounted for as a transaction between entities under common control.

VMware, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

January 31,

 

February 1,

 

January 31,

 

February 1,

 

2020 

 

 2019(1)

 

2020 

 

2019(1) 

Operating activities:

 

 

 

 

 

 

 

Net income

$

315

 

 

$

479

 

 

$

6,356

 

 

$

1,590

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

247

 

 

189

 

 

873

 

 

727

 

Stock-based compensation

312

 

 

220

 

 

1,017

 

 

800

 

Deferred income taxes, net

(146

)

 

(52

)

 

(5,284

)

 

(110

)

Unrealized (gain) loss on equity securities, net

(1

)

 

 

 

(31

)

 

14

 

Loss on disposition

 

1

 

 

 

 

7

 

(Gain) loss on disposition of assets, revaluation and impairment, net

 

 

5

 

 

(4

)

 

2

 

Other

6

 

 

3

 

 

9

 

 

11

 

Changes in assets and liabilities, net of acquisitions:

 

 

 

 

 

 

 

Accounts receivable

(283

)

 

(506

)

 

(119

)

 

(214

)

Other current assets and other assets

(224

)

 

(99

)

 

(668

)

 

(347

)

Due to/from related parties, net

(673

)

 

(503

)

 

(374

)

 

(480

)

Accounts payable

21

 

 

(18

)

 

35

 

 

105

 

Accrued expenses and other liabilities

499

 

 

411

 

 

417

 

 

290

 

Income taxes payable

(38

)

 

(49

)

 

(23

)

 

(40

)

Unearned revenue

1,050

 

 

939

 

 

1,668

 

 

1,302

 

Net cash provided by operating activities

1,085

 

 

1,020

 

 

3,872

 

 

3,657

 

Investing activities:

 

 

 

 

 

 

 

Additions to property and equipment

(64

)

 

(68

)

 

(279

)

 

(254

)

Purchases of available-for-sale securities

 

 

 

 

 

 

(780

)

Sales of available-for-sale securities

 

 

3,811

 

 

 

 

3,999

 

Maturities of available-for-sale securities

 

 

488

 

 

 

 

2,393

 

Purchases of strategic investments

(12

)

 

(5

)

 

(30

)

 

(8

)

Proceeds from disposition of assets

 

 

3

 

 

22

 

 

41

 

Business combinations, net of cash acquired, and purchases of intangible assets

 

 

(419

)

 

(2,437

)

 

(938

)

Net cash paid on disposition of a business

 

 

 

 

(4

)

 

(11

)

Net cash provided by (used in) investing activities

(76

)

 

3,810

 

 

(2,728

)

 

4,442

 

Financing activities:

 

 

 

 

 

 

 

Proceeds from the initial public offering of Pivotal, net of issuance costs paid

 

 

 

 

 

 

544

 

Proceeds from issuance of common stock

14

 

 

36

 

 

308

 

 

259

 

Borrowings under term loan, net of issuance costs

1,400

 

 

 

 

3,393

 

 

 

Borrowings on credit facility, net of debt issuance costs

 

 

 

 

 

 

15

 

Repayment of term loan

(500

)

 

 

 

(1,900

)

 

 

Repayments on credit facility

 

 

 

 

 

 

(35

)

Repurchase of common stock

(55

)

 

(42

)

 

(1,334

)

 

(42

)

Shares repurchased for tax withholdings on vesting of restricted stock

(141

)

 

(129

)

 

(534

)

 

(357

)

Payment for Special Dividend

 

 

(11,000

)

 

 

 

(11,000

)

Payment to acquire non-controlling interests

(1,666

)

 

 

 

(1,666

)

 

 

Contribution from Dell

 

 

3

 

 

27

 

 

44

 

Payment for common control transaction with Dell

 

 

 

 

 

 

(8

)

Principal payments on finance lease obligations

 

 

 

 

(1

)

 

 

Net cash used in financing activities

(948

)

 

(11,132

)

 

(1,707

)

 

(10,580

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

(2

)

 

 

 

(2

)

 

1

 

Net increase (decrease) in cash, cash equivalents and restricted cash

59

 

 

(6,302

)

 

(565

)

 

(2,480

)

Cash, cash equivalents and restricted cash at beginning of the period

2,972

 

 

9,898

 

 

3,596

 

 

6,076

 

Cash, cash equivalents and restricted cash at end of the period

$

3,031

 

 

$

3,596

 

 

$

3,031

 

 

$

3,596

 

Supplemental disclosures of cash flow information:

 

 

 

 

 

 

 

Issuance of VMware Class B common shares for Pivotal Class B common shares held by Dell

$

1,101

 

 

$

 

 

$

1,101

 

 

$

 

Cash paid for interest

3

 

 

3

 

 

134

 

 

129

 

Cash paid for taxes, net

86

 

 

192

 

 

369

 

 

399

 

Non-cash items:

 

 

 

 

 

 

 

Changes in capital additions, accrued but not paid

$

13

 

 

$

(7

)

 

$

18

 

 

$

9

 

Changes in tax withholdings on vesting of restricted stock, accrued but not paid

(62

)

 

(44

)

 

(13

)

 

17

 

_________

(1) Adjusted to reflect the recast of prior period information due to the Pivotal acquisition, which was accounted for as a transaction between entities under common control.


Contacts

Paul Ziots
VMware Investor Relations
pziots@vmware.com
650-427-3267

Michael Thacker
VMware Global PR
mthacker@vmware.com
650-427-4454


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