VMware Reports Fiscal Year 2020 First Quarter Results

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PALO ALTO, Calif., May 30, 2019 (GLOBE NEWSWIRE) -- VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, today announced financial results for the first quarter of fiscal year 2020:

VMware is maintaining its full-year fiscal 2020 guidance, including total revenue of $10.03 billion, GAAP operating margin of between 21.4% and 22.8% and non-GAAP operating margin of 33%.

The company also announced that its Board of Directors has authorized the repurchase of up to $1.5 billion of its Class A common stock through fiscal 2021, which ends on January 29, 2021. Stock will be repurchased from time to time, in the open market or through private transactions, subject to market conditions. This stock authorization is in addition to the Company’s ongoing $1 billion stock repurchase program announced in August 2017, which had $243 million remaining at the end of the first quarter.

“Q1 was a good start to fiscal 2020 with strength across our comprehensive solutions portfolio,” commented Pat Gelsinger, CEO, VMware. “We were especially pleased to announce a number of agreements during the quarter with key partners Amazon Web Services, Dell and Microsoft as customers continue to turn to VMware’s cloud infrastructure technology to enable their digital transformations.”

“Our Q1 results reflect continued progress in expanding VMware’s broad platform for hybrid and multi-cloud environments,” said Zane Rowe, executive vice president and CFO, VMware. “We’re reiterating our full-year fiscal 2020 guidance and are pleased to announce that the board has authorized an incremental $1.5 billion dollars in stock repurchases through the end of fiscal year 2021.”

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 . 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 in conjunction with the conference call.

VMware, VMware Cloud, Workspace ONE, Horizon, NSX-T, NSX Cloud, VMware Essential PKS, VMware Enterprise PKS, vRealize, Bitnami and AetherPal 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.

Paul Ziots VMware Investor Relations650-427-3267

Michael ThackerVMware Global PR650-427-4454

To provide investors and others with additional information regarding VMware’s results, VMware has disclosed in this earnings release the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share and free cash flow. VMware has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. These non-GAAP financial measures, other than free cash flow, differ from GAAP in that they exclude stock-based compensation, employer payroll tax on employee stock transactions, amortization of acquired intangible assets, realignment charges, acquisition, disposition and other-related items, certain litigation and other contingencies and discrete items that impacted our GAAP tax rate, each as discussed below. Our non-GAAP financial measures also reflect the application of our non-GAAP tax rate. Free cash flow differs from GAAP cash flow from operating activities with respect to the treatment of capital expenditures.

VMware’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, to calculate bonus payments and to evaluate VMware’s financial performance, the performance of its individual functional groups and the ability of operations to generate cash. Management believes these non-GAAP financial measures reflect VMware’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in VMware’s business, as they exclude charges and gains that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating VMware’s operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. Additionally, management believes information regarding free cash flow provides investors and others with an important perspective on the cash available to make strategic acquisitions and investments, to repurchase shares, to fund ongoing operations and to fund other capital expenditures.

Management believes these non-GAAP financial measures are useful to investors and others in assessing VMware’s operating performance due to the following factors:

Additionally, VMware’s management believes that the non-GAAP financial measure of free cash flow is meaningful to investors because management reviews cash flow generated from operations after taking into consideration capital expenditures due to the fact that these expenditures are considered to be a necessary component of ongoing operations.

The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense that affect VMware’s operations. Specifically, in the case of stock-based compensation, if VMware did not pay out a portion of its compensation in the form of stock-based compensation and related employer payroll taxes, the cash salary expense included in operating expenses would be higher, which would affect VMware’s cash position. VMware compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP and should not be considered measures of VMware’s liquidity. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited.

Management encourages investors and others to review VMware’s financial information in its entirety and not rely on a single financial measure.

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Globe Newswire: 21:15 GMT Thursday 30th May 2019

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