Exhibit 99.1
| | | | |
| | Contact: | | Michael Gallant 508-293-6357 gallant_michael@emc.com |
FOR IMMEDIATE RELEASE
EMC POSTS RECORD FOURTH-QUARTER AND
FULL-YEAR FINANCIAL RESULTS
| | • | | Fourth-Quarter Revenue of $3.83 Billion, up 19% Year-over-Year |
| | • | | Fourth-Quarter GAAP EPS of $ 0.24, up 33% Year-over-Year |
| | • | | Fourth-Quarter Operating Cash flow of $979 Million, up 50% Year-over-Year |
| | • | | Record Full-Year Revenue of $13.23 Billion, up 19% Year-over-Year |
HOPKINTON, Mass. – Jan. 29, 2008 – EMC Corporation (NYSE:EMC), the world leader in information infrastructure solutions, today announced all-time record fourth-quarter and full-year revenue and strong year-over-year growth in profit, earnings per share and operating cash flow. EMC’s 18th consecutive quarter of double-digit year-over-year revenue growth was highlighted by balanced, double-digit revenue growth across the company’s Information Storage, Content Management & Archiving, RSA Information Security, and VMware Virtual Infrastructure business lines and its four major geographies.
Total consolidated revenue for the fourth quarter of 2007 was a record $3.83 billion, an increase of 19% over the $3.21 billion reported for the fourth quarter of 2006. GAAP net income for the fourth quarter of 2007 was $525.7 million or $0.24 per diluted share, 33% higher than the GAAP $0.18 earnings per diluted share reported for the year-ago period. During the quarter, EMC generated operating cash flow of $979 million, an increase of 50% compared with the same period a year ago and free cash flow of $712 million, an increase of 78% year-over-year.
Total consolidated revenue for EMC’s full 2007 fiscal year was a record $13.23 billion, 19% higher than the $11.16 billion reported for the full 2006 fiscal year. GAAP net income for 2007 was $1.67 billion or $0.77 per diluted share, 43% higher than the GAAP earnings per diluted share of $0.54 reported for 2006.
Joe Tucci, EMC Chairman, President and Chief Executive Officer, said, “2007 was truly a breakout year for EMC. We exceeded all of the aggressive financial targets we set out to achieve at the beginning of the year. The highly successful partial IPO of VMware clearly met its key goals. And we further organized around our ‘One EMC’ initiative to interlock and drive more technology and product integrations across our Information Storage, Content Management and Archiving, and RSA Information Security business units, making it much easier for our customers and partners to do business with EMC.”
Commenting further, Tucci said, “Looking forward, EMC has never been better positioned to continue to grow and gain market share. We have the best product line-up in our history with a very favorable product cycle, and our proven go-to-market model is firmly in place. EMC is well positioned in the areas where IT spending will grow the fastest this year. Finally, our focus on innovation and R&D is enabling us to tackle emerging customer priorities such as Web 2.0, virtualization, compliance and new online methods for purchasing and consuming software.”
During the fourth quarter, EMC systems revenue increased 15% compared with the same period a year ago and represented 44% of total fourth-quarter revenue. Software license and maintenance revenue increased 20% year-over-year and accounted for 40% of total fourth-quarter revenue. Professional services, systems maintenance and other services revenue grew by 27% year-over-year and represented 16% of total fourth-quarter revenue. Revenue from North America increased 16% compared with the same period a year ago and represented 55% of total fourth-quarter revenue. Revenue from operations outside of North America grew 23% year-over-year, driven by double-digit revenue growth in EMC’s Europe, Middle East and Africa (EMEA), Asia-Pacific and Japan (APJ) and Latin America regions.
David Goulden, EMC Executive Vice President and Chief Financial Officer, said, “We exceeded our growth, profitability and free cash flow targets for the fourth quarter and for the year. By investing in our go-to-market model and worldwide market presence, strengthening our product portfolio, and expanding our strategic partnerships around the world, we enter 2008 with an even stronger foundation for continued financial success and market share gains.”
Fourth-Quarter Highlights
EMC’s Information Storage business, which includes revenue from storage systems, storage software and related customer and professional services, reached $3.03 billion, an increase of 14% compared with the year-ago period. Growth in the Information Storage business reflects continued global demand for EMC Symmetrix, EMC CLARiiON, and EMC Celerra networked storage systems. Strong customer demand for IP storage solutions, next-generation backup and recovery capabilities, file-based virtualization, and model-based resource management also helped to drive strong year-over-year information storage revenue growth.
EMC’s Content Management and Archiving business posted double-digit revenue growth, increasing fourth-quarter revenue 17% year-over-year to $238 million. On a year-over-year basis, new license revenue increased 8% and maintenance and professional services revenue was up 25%. Growth in the Content Management and Archiving business reflects strong global demand for EMC’s enterprise content management and archiving solutions to drive business efficiency, compliance and risk mitigation across the information infrastructure, and demand for EMC’s Documentum 6 platform, which gives organizations of various sizes and across industries a robust, unified repository for managing, storing, securing, and delivering increasing amounts of unstructured content.
RSA Information Security revenues for the fourth quarter of 2007 grew 30% year-over-year, reaching $148 million. This growth was primarily driven by RSA’s key management and its consumer-facing applications, as well as its compliance and security information and event management (SIEM) solutions. During the quarter, the division continued to see success with its holistic, information-centric approach to information security and risk management and its unparalleled breadth of solutions that address customers’ key areas of information security and its management across the information infrastructure.
VMware (NYSE: VMW), which is majority-owned by EMC, had fourth-quarter revenues of $412 million, an increase of approximately 80% compared to the year-ago quarter. VMware is the global leader in virtualization solutions from the desktop to the datacenter. More than 100,000 customers rely on VMware to reduce capital and operating expenses, ensure business continuity, strengthen security and go green. VMware is based in Palo Alto, California. Visithttp://ir.vmware.com for more information about the virtualization software leader’s fourth-quarter financial results.
2007 Highlights
EMC had double-digit revenue growth across its systems, software and services offerings in 2007. Systems revenue grew 12% during the year to $5.76 billion, driven by the introduction of new models and enhancements to EMC’s entire line of networked storage platforms. Software license and maintenance revenue grew 25% to $5.33 billion, and professional services, systems maintenance and other services revenue grew 23% in 2007 to $2.13 billion. For the year, systems revenue represented 44% of EMC’s annual revenue, software license and maintenance represented 40% and professional services and systems maintenance represented 16% of annual revenue.
EMC’s Information Infrastructure business revenues, which comprise EMC’s Information Storage, Content Management and Archiving and RSA Information Security business revenues, were $11.9 billion and grew 14% in 2007. EMC’s Information Storage business annual revenue increased 10% in 2007 to $10.61 billion compared to 2006. Annual revenue for EMC’s Content Management and Archiving business grew 13% year-over-year to $773 million and, on a comparable basis, annual revenue for the RSA Information Security division grew 24% to $525 million.
Total consolidated revenue for EMC’s full 2007 fiscal year, which includes EMC’s Information Infrastructure and VMware Virtual Infrastructure businesses, was a record $13.23 billion, 19% higher than the $11.16 billion reported for the full 2006 fiscal year.
For the year, revenue from EMC’s North America geography increased 17% compared with 2006 and represented 57% of total annual revenue. Revenue from operations outside of North America grew 22% year-over-year. All four of EMC’s major geographies posted double-digit year-over-year revenue growth, including EMC’s Asia Pacific and Japan geography which emerged as the company’s fastest-growing geography for 2007.
Business Outlook
The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements do not give effect to the potential impact of mergers, acquisitions, divestitures or business combinations that may be announced or closed after the date hereof. These statements supersede all prior statements regarding business outlook set forth in prior EMC news releases.
All dollar amounts and percentages in the business outlook should be considered to be approximations.
| | • | | Consolidated EMC revenues are expected to grow 13% to $15 billion in 2008. Within the consolidated revenues: |
| | ¡ | | EMC’s Information Infrastructure’s revenues are expected to grow 9% to $13 billion in 2008. |
| | ¡ | | VMware’s revenues are expected to grow 50% in 2008. |
| | • | | Consolidated GAAP diluted earnings per share are expected to be $0.78 in 2008. |
| | ¡ | | EMC Information Infrastructure’s contribution to diluted earnings per share is expected to be $0.68 in 2008. |
| | ¡ | | VMware’s contribution to diluted earnings per share is expected to be $0.10 in 2008. |
| | • | | Consolidated non-GAAP diluted earnings per share are expected to grow 14% to $1.04 in 2008. Non-GAAP diluted earnings per share exclude the impact of stock-based compensation and intangible asset amortization. |
| | ¡ | | EMC Information Infrastructure’s contribution to non-GAAP diluted earnings per share is expected to grow 11% to $0.88 in 2008. |
| | ¡ | | VMware’s contribution to non-GAAP diluted earnings per share is expected to grow 33% to $0.16 in 2008. |
| | • | | Consolidated stock-based compensation expense is expected to be $0.18 per diluted share in 2008 and theamortization of intangible assets is expected to be $0.08 per diluted share in 2008. Within these consolidated expenses: |
| | ¡ | | EMC Information Infrastructure’s stock-based compensation expense is expected to be $0.12 per diluted share in 2008 and amortization of intangible assets is expected to be $.08 per diluted share in 2008. |
| | ¡ | | VMware’s stock-based compensation expense is expected to be $0.06 per diluted share in 2008 and amortization of intangible assets to be less than $0.01 per diluted share in 2008. |
| | • | | Consolidated GAAP tax rate for 2008 is expected to be 20% and the non-GAAP tax rate to be 22%. The tax impact of stock-based compensation and intangible asset amortization is expected to be 2% on the 2008 tax rate. |
About EMC
EMC Corporation (NYSE: EMC) is the world’s leading developer and provider of information infrastructure technology and solutions that enable organizations of all sizes to transform the way they compete and create value from their information. Information about EMC’s products and services can be found atwww.EMC.com.
EMC, Documentum, CLARiiON, Celerra and Symmetrix are registered trademarks of EMC Corporation. VMware is a registered trademark of VMware, Inc. RSA is a registered trademark of RSA Security Inc. All other trademarks used are the property of their respective owners.
Forward-Looking Statements
This release contains “forward-looking statements” as defined under the Federal Securities Laws. 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: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) our ability to protect our proprietary technology; (iv) risks associated with managing the growth of our business, including risks associated with acquisitions and investments and the challenges and costs of integration, restructuring and achieving anticipated synergies; (v) fluctuations in VMware, Inc.’s operating results and risks associated with trading of VMware stock; (vi) competitive factors, including but not limited to pricing pressures and new product introductions; (vii) the relative and varying rates of product price and component cost declines and the volume and mixture of product and services revenues; (viii) component and product quality and availability; (ix) the transition to new products, the uncertainty of customer acceptance of new product offerings and rapid technological and market change; (x) insufficient, excess or obsolete inventory; (xi) war or acts of terrorism; (xii) the ability to attract and retain highly qualified employees; (xiii) fluctuating currency exchange rates; and (xiv) other one-time events and other important factors disclosed previously and from time to time in EMC’s filings with the U.S. Securities and Exchange Commission. EMC disclaims any obligation to update any such forward-looking statements after the date of this release.
Use of Non-GAAP Financial Measures
This release contains non-GAAP financial measures. These non-GAAP financial measures, which are used as measures of EMC’s performance or liquidity, should be considered in addition to, not as a substitute for, measures of EMC’s financial performance or liquidity prepared in accordance with GAAP. EMC’s non-GAAP financial measures may be defined differently than similar terms used by other companies, and accordingly, care should be exercised in understanding how EMC defines its non-GAAP financial measures.
Where specified in the accompanying schedules for various periods entitled “Reconciliation of GAAP to Non-GAAP,” certain items noted on each such specific schedule (including, for certain time periods where noted, amounts relating to tax benefits, net gains on investments, including gain on sale of VMware stock, restructuring and IPR&D charges, stock-based compensation expense and intangible amortization) are excluded from the non-GAAP financial measures.
EMC’s management uses the non-GAAP financial measures in the accompanying schedules to gain an understanding of EMC’s comparative operating performance (when comparing such results with previous periods or forecasts) and future prospects and excludes the above-listed items from its internal financial statements for purposes of its internal budgets and each reporting segment’s financial goals. These non-GAAP financial measures are used by EMC’s management in their financial and operating decision-making because management believes they reflect EMC’s ongoing business in a manner that allows meaningful period-to-period comparisons. EMC’s management believes that these non-GAAP financial measures provide useful information to investors and others (a) in understanding and evaluating EMC’s current operating performance and future prospects in the same manner as management does, if they so choose, and (b) in comparing in a consistent manner the Company’s current financial results with the Company’s past financial results.
This release also includes disclosures regarding free cash flow which is a non-GAAP financial measure. Free cash flow is defined as net cash provided by operating activities less additions to property, plant and equipment and capitalized software development costs. EMC uses free cash flow, among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than capital expenditures and capitalized software development costs. Management believes that information regarding free cash flow provides investors with an important perspective on the cash available to make strategic acquisitions and investments, repurchase shares, service debt and fund ongoing operations. As free cash flow is not a measure of liquidity calculated in accordance with GAAP, free cash flow should be considered in addition to, but not as a substitute for, the analysis provided in the statement of cash flows.
All of the foregoing non-GAAP financial measures have limitations. Specifically, the non-GAAP financial measures that exclude the items noted above do not include all items of income and expense that affect EMC’s operations. Further, these non-GAAP financial measures are not prepared in accordance with GAAP, may not be comparable to non-GAAP financial measures used by other companies and do not reflect any benefit that such items may confer on EMC. Management compensates for these limitations by also considering EMC’s financial results as determined in accordance with GAAP.
EMC CORPORATION
Consolidated Income Statements
(in thousands, except per share amounts)
Unaudited
| | | | | | | | | | | | | | | | |
| | | Three Months Ended | | | Twelve Months Ended | |
| | | December 31,
2007 | | | December 31,
2006 | | | December 31,
2007 | | | December 31,
2006 | |
Revenues: | | | | | | | | | | | | | | | | |
Product sales | | $ | 2,744,311 | | | $ | 2,360,262 | | | $ | 9,411,976 | | | $ | 8,078,042 | |
Services | | | 1,086,463 | | | | 854,312 | | | | 3,818,229 | | | | 3,077,048 | |
| | | | | | | | | | | | | | | | |
| | | 3,830,774 | | | | 3,214,574 | | | | 13,230,205 | | | | 11,155,090 | |
Cost and expenses: | | | | | | | | | | | | | | | | |
Cost of product sales | | | 1,227,607 | | | | 1,111,861 | | | | 4,359,041 | | | | 3,906,771 | |
Cost of services | | | 484,236 | | | | 364,588 | | | | 1,659,836 | | | | 1,335,120 | |
Research and development | | | 402,970 | | | | 358,973 | | | | 1,526,928 | | | | 1,254,193 | |
Selling, general and administrative | | | 1,128,875 | | | | 913,948 | | | | 3,912,688 | | | | 3,253,274 | |
In-process research and development | | | 350 | | | | — | | | | 1,150 | | | | 35,410 | |
Restructuring charges | | | 34,551 | | | | 166,923 | | | | 31,310 | | | | 162,564 | |
| | | | | | | | | | | | | | | | |
Operating income | | | 552,185 | | | | 298,281 | | | | 1,739,252 | | | | 1,207,758 | |
Net gain on investments, including gain on sale of VMware stock | | | — | | | | — | | | | 137,330 | | | | — | |
Investment income | | | 79,083 | | | | 50,273 | | | | 249,264 | | | | 224,949 | |
Interest expense | | | (18,489 | ) | | | (25,685 | ) | | | (72,855 | ) | | | (34,123 | ) |
Other income (expense), net | | | 5,627 | | | | (10,814 | ) | | | 6,578 | | | | (8,566 | ) |
| | | | | | | | | | | | | | | | |
Income before taxes, minority interest and cumulative effect of a change in accounting principle | | | 618,406 | | | | 312,055 | | | | 2,059,569 | | | | 1,390,018 | |
Income tax provision (benefit) | | | 81,676 | | | | (76,714 | ) | | | 378,446 | | | | 162,664 | |
| | | | | | | | | | | | | | | | |
Income before minority interest and cumulative effect of a change in accounting principle | | | 536,730 | | | | 388,769 | | | | 1,681,123 | | | | 1,227,354 | |
Minority interest, net of taxes | | | (10,996 | ) | | | — | | | | (15,455 | ) | | | — | |
| | | | | | | | | | | | | | | | |
Income before cumulative effect of a change in accounting principle | | | 525,734 | | | | 388,769 | | | | 1,665,668 | | | | 1,227,354 | |
Cumulative effect of a change in accounting principle, net of taxes of $107 | | | — | | | | — | | | | — | | | | 247 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 525,734 | | | $ | 388,769 | | | $ | 1,665,668 | | | $ | 1,227,601 | |
| | | | | | | | | | | | | | | | |
Net income per weighted average share, basic: | | | | | | | | | | | | | | | | |
Income before cumulative effect of a change in accounting principle | | $ | 0.25 | | | $ | 0.18 | | | $ | 0.80 | | | $ | 0.55 | |
Cumulative effect of a change in accounting principle | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 0.25 | | | $ | 0.18 | | | $ | 0.80 | | | $ | 0.55 | |
| | | | | | | | | | | | | | | | |
Net income per weighted average share, diluted: | | | | | | | | | | | | | | | | |
Income before cumulative effect of a change in accounting principle | | $ | 0.24 | | | $ | 0.18 | | | $ | 0.77 | | | $ | 0.54 | |
Cumulative effect of a change in accounting principle | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 0.24 | | | $ | 0.18 | | | $ | 0.77 | | | $ | 0.54 | |
| | | | | | | | | | | | | | | | |
Weighted average shares, basic | | | 2,086,259 | | | | 2,124,625 | | | | 2,079,542 | | | | 2,248,431 | |
Weighted average shares, diluted | | | 2,210,008 | | | | 2,164,518 | | | | 2,157,873 | | | | 2,286,304 | |
Note: Prior periods have been adjusted to reclassify a portion of the cumulative effect of adoption of FAS123R in Q1'06 from the income statement to stockholders' equity. This reclassification results in an increase to net income in Q1'06 and YTD 2006 of $3,619 and a corresponding decrease in additional paid-in capital.
Reconciliation of GAAP to Non-GAAP
For the Three Months Ended December 31, 2007
(in thousands, except per share amounts)
Unaudited
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Revenue | | | Cost of
Revenue | | | Research
and
Development | | | Selling,
General and
Administrative | | | Restructuring
and IPR&D | | | Operating
Income | | | Other
Income,
net | | Income
Before
Taxes
and
Minority
Interest | | | Income
Tax
Provision | | | Income
Before
Minority
Interest | | | Minority
Interest | | | Net
Income | | | Net
Income
per
Weighted
Average
Share,
Basic | | | Net
Income
per
Weighted
Average
Share,
Diluted | |
EMC Consolidated GAAP | | $ | 3,830,774 | | | $ | 1,711,843 | | | $ | 402,970 | | | $ | 1,128,875 | | | $ | 34,901 | | | $ | 552,185 | | | $ | 66,221 | | $ | 618,406 | | | $ | 81,676 | | | $ | 536,730 | | | $ | (10,996 | ) | | $ | 525,734 | | | $ | 0.252 | | | $ | 0.236 | |
Restructuring charges and IPR&D | | | — | | | | — | | | | — | | | | — | | | | (34,901 | ) | | | 34,901 | | | | — | | | 34,901 | | | | 3,123 | | | | 31,778 | | | | — | | | | 31,778 | | | $ | 0.015 | | | $ | 0.014 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Consolidated Adjusted (1) | | | 3,830,774 | | | | 1,711,843 | | | | 402,970 | | | | 1,128,875 | | | | — | | | | 587,086 | | | | 66,221 | | | 653,307 | | | | 84,799 | | | | 568,508 | | | | (10,996 | ) | | | 557,512 | | | $ | 0.267 | | | $ | 0.251 | |
Stock-based compensation expense | | | — | | | | (15,157 | ) | | | (30,837 | ) | | | (50,220 | ) | | | — | | | | 96,214 | | | | — | | | 96,214 | | | | 17,719 | | | | 78,495 | | | | (4,089 | ) | | | 74,406 | | | $ | 0.036 | | | $ | 0.034 | |
Intangible amortization | | | — | | | | (31,400 | ) | | | (4,871 | ) | | | (20,797 | ) | | | — | | | | 57,068 | | | | — | | | 57,068 | | | | 19,955 | | | | 37,113 | | | | (581 | ) | | | 36,532 | | | $ | 0.018 | | | $ | 0.017 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Consolidated Non-GAAP (2) | | $ | 3,830,774 | | | $ | 1,665,286 | | | $ | 367,262 | | | $ | 1,057,858 | | | $ | — | | | $ | 740,368 | | | $ | 66,221 | | $ | 806,589 | | | $ | 122,473 | | | $ | 684,116 | | | $ | (15,665 | ) | | $ | 668,451 | | | $ | 0.320 | | | $ | 0.301 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure GAAP | | $ | 3,418,367 | | | $ | 1,644,155 | | | $ | 309,541 | | | $ | 950,552 | | | $ | 34,901 | | | $ | 479,218 | | | $ | 59,435 | | $ | 538,653 | | | $ | 77,748 | | | $ | 460,905 | | | $ | — | | | $ | 460,905 | | | $ | 0.221 | | | $ | 0.209 | |
Restructuring charges and IPR&D | | | — | | | | — | | | | — | | | | — | | | | (34,901 | ) | | | 34,901 | | | | — | | | 34,901 | | | | 3,123 | | | | 31,778 | | | | — | | | | 31,778 | | | $ | 0.015 | | | $ | 0.014 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure Adjusted (3) | | | 3,418,367 | | | | 1,644,155 | | | | 309,541 | | | | 950,552 | | | | — | | | | 514,119 | | | | 59,435 | | | 573,554 | | | | 80,871 | | | | 492,683 | | | | — | | | | 492,683 | | | $ | 0.236 | | | $ | 0.223 | |
Stock-based compensation expense | | | — | | | | (10,557 | ) | | | (15,708 | ) | | | (35,362 | ) | | | — | | | | 61,627 | | | | — | | | 61,627 | | | | 12,192 | | | | 49,435 | | | | — | | | | 49,435 | | | $ | 0.024 | | | $ | 0.022 | |
Intangible amortization | | | — | | | | (26,011 | ) | | | (4,871 | ) | | | (19,628 | ) | | | — | | | | 50,510 | | | | — | | | 50,510 | | | | 17,524 | | | | 32,986 | | | | — | | | | 32,986 | | | $ | 0.016 | | | $ | 0.015 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure Non-GAAP (4) | | $ | 3,418,367 | | | $ | 1,607,587 | | | $ | 288,962 | | | $ | 895,562 | | | $ | — | | | $ | 626,256 | | | $ | 59,435 | | $ | 685,691 | | | $ | 110,587 | | | $ | 575,104 | | | $ | — | | | $ | 575,104 | | | $ | 0.276 | | | $ | 0.260 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware standalone GAAP | | $ | 412,475 | | | $ | 67,182 | | | $ | 91,562 | | | $ | 177,257 | | | $ | — | | | $ | 76,474 | | | $ | 6,786 | | $ | 83,260 | | | $ | 5,105 | | | $ | 78,155 | | | $ | — | | | $ | 78,155 | | | $ | 0.037 | | | $ | 0.035 | |
GAAP adjustments and eliminations | | | (68 | ) | | | 506 | | | | 1,867 | | | | 1,066 | | | | — | | | | (3,507 | ) | | | — | | | (3,507 | ) | | | (1,177 | ) | | | (2,330 | ) | | | (10,996 | ) | | | (13,326 | ) | | $ | (0.006 | ) | | $ | (0.008 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware within EMC | | | 412,407 | | | | 67,688 | | | | 93,429 | | | | 178,323 | | | | — | | | | 72,967 | | | | 6,786 | | | 79,753 | | | | 3,928 | | | | 75,825 | | | | (10,996 | ) | | | 64,829 | | | $ | 0.031 | | | $ | 0.028 | |
Stock-based compensation expense | | | — | | | | (4,600 | ) | | | (15,129 | ) | | | (14,858 | ) | | | — | | | | 34,587 | | | | — | | | 34,587 | | | | 5,527 | | | | 29,060 | | | | (4,089 | ) | | | 24,971 | | | $ | 0.012 | | | $ | 0.011 | |
Intangible amortization | | | — | | | | (5,389 | ) | | | — | | | | (1,169 | ) | | | — | | | | 6,558 | | | | — | | | 6,558 | | | | 2,431 | | | | 4,127 | | | | (581 | ) | | | 3,546 | | | $ | 0.002 | | | $ | 0.002 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware within EMC Non-GAAP (5) | | $ | 412,407 | | | $ | 57,699 | | | $ | 78,300 | | | $ | 162,296 | | | $ | — | | | $ | 114,112 | | | $ | 6,786 | | $ | 120,898 | | | $ | 11,886 | | | $ | 109,012 | | | $ | (15,665 | ) | | $ | 93,346 | | | $ | 0.045 | | | $ | 0.041 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Wtd. Average Share O/S | | | | 2,086,259 | | | | 2,210,008 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Represents EMC Consolidated GAAP excluding restructuring charges and IPR&D. |
| (2) | Represents EMC Consolidated Adjusted excluding stock-based compensation expense and intangible amortization. |
| (3) | Represents EMC Information Infrastructure GAAP excluding restructuring charges and IPR&D. |
| (4) | Represents EMC Information Infrastructure Adjusted less stock-based compensation expense and intangible amortization. |
| (5) | Represents VMware within EMC excluding stock-based compensation expense and intangible amortization. |
Note: schedule may not add due to rounding
Reconciliation of GAAP to Non-GAAP
For the Three Months Ended December 31, 2006
(in thousands, except per share amounts)
Unaudited
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Revenue | | Cost of
Revenue | | | Research
and
Development | | | Selling,
General and
Administrative | | | Restructuring
and IPR&D | | | Operating
Income | | Other
Income,
net | | Income
Before
Taxes | | Income
Tax
Provision | | | Net
Income | | | Net
Income
per
Weighted
Average
Share,
Basic | | | Net
Income
per
Weighted
Average
Share,
Diluted | |
EMC Consolidated GAAP | | $ | 3,214,574 | | $ | 1,476,449 | | | $ | 358,973 | | | $ | 913,948 | | | $ | 166,923 | | | $ | 298,281 | | $ | 13,774 | | $ | 312,055 | | $ | (76,714 | ) | | $ | 388,769 | | | $ | 0.183 | | | $ | 0.180 | |
Restructuring charges | | | — | | | — | | | | — | | | | — | | | | (166,923 | ) | | | 166,923 | | | — | | | 166,923 | | | 37,833 | | | | 129,090 | | | $ | 0.061 | | | $ | 0.060 | |
Tax benefits | | | — | | | — | | | | — | | | | — | | | | — | | | | — | | | — | | | — | | | 111,590 | | | | (111,590 | ) | | $ | (0.053 | ) | | $ | (0.052 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Consolidated Adjusted (1) | | | 3,214,574 | | | 1,476,449 | | | | 358,973 | | | | 913,948 | | | | — | | | | 465,204 | | | 13,774 | | | 478,978 | | | 72,709 | | | | 406,269 | | | $ | 0.191 | | | $ | 0.188 | |
Stock-based compensation expense | | | — | | | (16,914 | ) | | | (27,917 | ) | | | (54,345 | ) | | | — | | | | 99,176 | | | — | | | 99,176 | | | 25,780 | | | | 73,396 | | | $ | 0.035 | | | $ | 0.034 | |
Intangible amortization | | | — | | | (27,757 | ) | | | (1,977 | ) | | | (13,931 | ) | | | — | | | | 43,665 | | | — | | | 43,665 | | | 15,654 | | | | 28,011 | | | $ | 0.013 | | | $ | 0.013 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Consolidated Non-GAAP (2) | | $ | 3,214,574 | | $ | 1,431,778 | | | $ | 329,079 | | | $ | 845,672 | | | $ | — | | | $ | 608,045 | | $ | 13,774 | | $ | 621,819 | | $ | 114,143 | | | $ | 507,676 | | | $ | 0.239 | | | $ | 0.235 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure GAAP | | $ | 2,982,543 | | $ | 1,437,056 | | | $ | 311,640 | | | $ | 807,555 | | | $ | 166,923 | | | $ | 259,369 | | $ | 12,527 | | $ | 271,896 | | $ | (84,039 | ) | | $ | 355,935 | | | $ | 0.168 | | | $ | 0.164 | |
Restructuring charges | | | — | | | — | | | | — | | | | — | | | | (166,923 | ) | | | 166,923 | | | — | | | 166,923 | | | 37,833 | | | | 129,090 | | | $ | 0.061 | | | $ | 0.060 | |
Tax benefits | | | — | | | — | | | | — | | | | — | | | | — | | | | — | | | — | | | — | | | 111,590 | | | | (111,590 | ) | | $ | (0.053 | ) | | $ | (0.052 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure Adjusted (3) | | | 2,982,543 | | | 1,437,056 | | | | 311,640 | | | | 807,555 | | | | — | | | | 426,292 | | | 12,527 | | | 438,819 | | | 65,384 | | | | 373,435 | | | $ | 0.176 | | | $ | 0.173 | |
Stock-based compensation expense | | | — | | | (16,159 | ) | | | (18,915 | ) | | | (47,896 | ) | | | — | | | | 82,970 | | | — | | | 82,970 | | | 21,887 | | | | 61,083 | | | $ | 0.029 | | | $ | 0.028 | |
Intangible amortization | | | — | | | (22,223 | ) | | | (1,977 | ) | | | (13,013 | ) | | | — | | | | 37,213 | | | — | | | 37,213 | | | 13,202 | | | | 24,011 | | | $ | 0.011 | | | $ | 0.011 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure Non-GAAP (4) | | $ | 2,982,543 | | $ | 1,398,674 | | | $ | 290,748 | | | $ | 746,646 | | | $ | — | | | $ | 546,475 | | $ | 12,527 | | $ | 559,002 | | $ | 100,473 | | | $ | 458,529 | | | $ | 0.216 | | | $ | 0.212 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware standalone GAAP | | $ | 229,581 | | $ | 37,250 | | | $ | 50,131 | | | $ | 105,691 | | | $ | — | | | $ | 36,509 | | $ | 1,234 | | $ | 37,743 | | $ | 6,764 | | | $ | 30,979 | | | $ | 0.015 | | | $ | 0.014 | |
GAAP adjustments and eliminations | | | 2,450 | | | 2,143 | | | | (2,798 | ) | | | 702 | | | | — | | | | 2,403 | | | 13 | | | 2,416 | | | 561 | | | | 1,855 | | | $ | 0.001 | | | $ | 0.001 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware within EMC | | | 232,031 | | | 39,393 | | | | 47,333 | | | | 106,393 | | | | — | | | | 38,912 | | | 1,247 | | | 40,159 | | | 7,325 | | | | 32,834 | | | $ | 0.015 | | | $ | 0.015 | |
Stock-based compensation expense | | | — | | | (755 | ) | | | (9,002 | ) | | | (6,449 | ) | | | — | | | | 16,206 | | | — | | | 16,206 | | | 3,893 | | | | 12,313 | | | $ | 0.006 | | | $ | 0.006 | |
Intangible amortization | | | — | | | (5,534 | ) | | | — | | | | (918 | ) | | | — | | | | 6,452 | | | — | | | 6,452 | | | 2,452 | | | | 4,000 | | | $ | 0.002 | | | $ | 0.002 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware within EMC Non-GAAP (5) | | $ | 232,031 | | $ | 33,104 | | | $ | 38,331 | | | $ | 99,026 | | | $ | — | | | $ | 61,570 | | $ | 1,247 | | $ | 62,817 | | $ | 13,670 | | | $ | 49,147 | | | $ | 0.023 | | | $ | 0.023 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | Wtd. Average Share O/S | | | | 2,124,625 | | | | 2,164,518 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Represents EMC Consolidated GAAP excluding restructuring charges and special tax benefits. |
| (2) | Represents EMC Consolidated Adjusted excluding stock-based compensation expense and intangible amortization. |
| (3) | Represents EMC Information Infrastructure GAAP excluding restructuring charges and special tax benefits. |
| (4) | Represents EMC Information Infrastructure Adjusted excluding stock-based compensation expense and intangible amortization. |
| (5) | Represents VMware within EMC excluding stock-based compensation expense and intangible amortization. |
Note: schedule may not add due to rounding
Reconciliation of GAAP to Non-GAAP
For the Year Ended December 31, 2007
(in thousands, except per share amounts)
Unaudited
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Revenue | | | Cost of
Revenue | | | Research
and
Development | | | Selling,
General and
Administrative | | | Restructuring
and IPR&D | | | Operating
Income | | | Other
Income,
net | | | Income
Before
Taxes and
Minority
Interest | | | Income
Tax
Provision | | | Income
Before
Minority
Interest | | | Minority
Interest | | | Net
Income | | | Net
Income
per
Weighted
Average
Share,
Basic | | | Net
Income
per
Weighted
Average
Share,
Diluted | |
EMC Consolidated GAAP | | $ | 13,230,205 | | | $ | 6,018,877 | | | $ | 1,526,928 | | | $ | 3,912,688 | | | $ | 32,460 | | | $ | 1,739,252 | | | $ | 320,317 | | | $ | 2,059,569 | | | $ | 378,446 | | | $ | 1,681,123 | | | $ | (15,455 | ) | | $ | 1,665,668 | | | $ | 0.801 | | | $ | 0.770 | |
Restructuring charges and IPR&D | | | — | | | | — | | | | — | | | | — | | | | (34,901 | ) | | | 34,901 | | | | — | | | | 34,901 | | | | 3,123 | | | | 31,778 | | | | — | | | | 31,778 | | | $ | 0.015 | | | $ | 0.015 | |
Net gains on investments, including gain on sale of VMware stock | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (137,330 | ) | | | (137,330 | ) | | | (22,180 | ) | | | (115,150 | ) | | | — | | | | (115,150 | ) | | $ | (0.055 | ) | | $ | (0.053 | ) |
Tax benefits | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 19,912 | | | | (19,912 | ) | | | — | | | | (19,912 | ) | | $ | (0.010 | ) | | $ | (0.009 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Consolidated Adjusted (1) | | | 13,230,205 | | | | 6,018,877 | | | | 1,526,928 | | | | 3,912,688 | | | | (2,441 | ) | | | 1,774,153 | | | | 182,987 | | | | 1,957,140 | | | | 379,301 | | | | 1,577,839 | | | | (15,455 | ) | | | 1,562,384 | | | $ | 0.751 | | | $ | 0.722 | |
Stock-based compensation expense | | | — | | | | (57,223 | ) | | | (108,041 | ) | | | (202,136 | ) | | | — | | | | 367,400 | | | | — | | | | 367,400 | | | | 87,054 | | | | 280,346 | | | | (5,793 | ) | | | 274,553 | | | $ | 0.132 | | | $ | 0.127 | |
Intangible amortization | | | — | | | | (119,948 | ) | | | (11,357 | ) | | | (73,492 | ) | | | — | | | | 204,797 | | | | — | | | | 204,797 | | | | 72,019 | | | | 132,778 | | | | (868 | ) | | | 131,910 | | | $ | 0.063 | | | $ | 0.061 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Consolidated Non-GAAP (2) | | $ | 13,230,205 | | | $ | 5,841,706 | | | $ | 1,407,530 | | | $ | 3,637,060 | | | $ | (2,441 | ) | | $ | 2,346,350 | | | $ | 182,987 | | | $ | 2,529,337 | | | $ | 538,374 | | | $ | 1,990,963 | | | $ | (22,115 | ) | | $ | 1,968,848 | | | $ | 0.947 | | | $ | 0.910 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure GAAP | | $ | 11,909,392 | | | $ | 5,800,529 | | | $ | 1,228,810 | | | $ | 3,322,169 | | | $ | 32,460 | | | $ | 1,525,424 | | | $ | 315,180 | | | $ | 1,840,604 | | | $ | 361,419 | | | $ | 1,479,185 | | | $ | — | | | $ | 1,479,185 | | | $ | 0.711 | | | $ | 0.685 | |
Restructuring charges and IPR&D | | | — | | | | — | | | | — | | | | — | | | | (34,901 | ) | | | 34,901 | | | | — | | | | 34,901 | | | | 3,123 | | | | 31,778 | | | | — | | | | 31,778 | | | $ | 0.015 | | | $ | 0.015 | |
Net gains on investments, including gain on sale of VMware stock | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | (137,330 | ) | | | (137,330 | ) | | | (22,180 | ) | | | (115,150 | ) | | | — | | | | (115,150 | ) | | $ | (0.055 | ) | | $ | (0.053 | ) |
Tax benefits | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | 19,912 | | | | (19,912 | ) | | | — | | | | (19,912 | ) | | $ | (0.010 | ) | | $ | (0.009 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure Adjusted (3) | | | 11,909,392 | | | | 5,800,529 | | | | 1,228,810 | | | | 3,322,169 | | | | (2,441 | ) | | | 1,560,325 | | | | 177,850 | | | | 1,738,175 | | | | 362,274 | | | | 1,375,901 | | | | — | | | | 1,375,901 | | | $ | 0.662 | | | $ | 0.638 | |
Stock-based compensation expense | | | — | | | | (48,693 | ) | | | (65,235 | ) | | | (159,531 | ) | | | — | | | | 273,459 | | | | — | | | | 273,459 | | | | 66,785 | | | | 206,674 | | | | — | | | | 206,674 | | | $ | 0.099 | | | $ | 0.096 | |
Intangible amortization | | | — | | | | (98,776 | ) | | | (11,357 | ) | | | (68,923 | ) | | | — | | | | 179,056 | | | | — | | | | 179,056 | | | | 62,490 | | | | 116,566 | | | | — | | | | 116,566 | | | $ | 0.056 | | | $ | 0.054 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure Non-GAAP (4) | | $ | 11,909,392 | | | $ | 5,653,060 | | | $ | 1,152,218 | | | $ | 3,093,715 | | | $ | (2,441 | ) | | $ | 2,012,840 | | | $ | 177,850 | | | $ | 2,190,690 | | | $ | 491,548 | | | $ | 1,699,142 | | | $ | — | | | $ | 1,699,142 | | | $ | 0.817 | | | $ | 0.787 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware standalone GAAP | | $ | 1,325,811 | | | $ | 218,674 | | | $ | 285,941 | | | $ | 585,855 | | | $ | — | | | $ | 235,341 | | | $ | 5,137 | | | $ | 240,478 | | | $ | 22,341 | | | $ | 218,137 | | | $ | — | | | $ | 218,137 | | | $ | 0.105 | | | $ | 0.101 | |
GAAP adjustments and eliminations | | | (4,998 | ) | | | (326 | ) | | | 12,177 | | | | 4,664 | | | | — | | | | (21,513 | ) | | | — | | | | (21,513 | ) | | | (5,314 | ) | | | (16,199 | ) | | | (15,455 | ) | | | (31,654 | ) | | $ | (0.015 | ) | | $ | (0.017 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware within EMC | | | 1,320,813 | | | | 218,348 | | | | 298,118 | | | | 590,519 | | | | — | | | | 213,828 | | | | 5,137 | | | | 218,965 | | | | 17,027 | | | | 201,938 | | | | (15,455 | ) | | | 186,483 | | | $ | 0.090 | | | $ | 0.084 | |
Stock-based compensation expense | | | — | | | | (8,530 | ) | | | (42,806 | ) | | | (42,605 | ) | | | — | | | | 93,941 | | | | — | | | | 93,941 | | | | 20,269 | | | | 73,672 | | | | (5,793 | ) | | | 67,879 | | | $ | 0.033 | | | $ | 0.031 | |
Intangible amortization | | | — | | | | (21,172 | ) | | | — | | | | (4,569 | ) | | | — | | | | 25,741 | | | | — | | | | 25,741 | | | | 9,529 | | | | 16,212 | | | | (868 | ) | | | 15,344 | | | $ | 0.007 | | | $ | 0.007 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware within EMC Non-GAAP (5) | | $ | 1,320,813 | | | $ | 188,646 | | | $ | 255,312 | | | $ | 543,345 | | | $ | — | | | $ | 333,510 | | | $ | 5,137 | | | $ | 338,647 | | | $ | 46,825 | | | $ | 291,822 | | | $ | (22,115 | ) | | $ | 269,706 | | | $ | 0.130 | | | $ | 0.123 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Wtd. Average Share O/S | | | | 2,079,542 | | | | 2,157,873 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Represents EMC Consolidated GAAP excluding restructuring charges, IPR&D, net gains on investments, including the gain on sale of VMware stock and special tax benefits. |
| (2) | Represents EMC Consolidated Adjusted excluding stock-based compensation expense and intangible amortization. |
| (3) | Represents EMC Information Infrastructure GAAP excluding restructuring charges, IPR&D, net gains on investments, including the gain on sale of VMware stock and special tax benefits. |
| (4) | Represents EMC Information Infrastructure Adjusted less stock-based compensation expense and intangible amortization. |
| (5) | Represents VMware within EMC excluding stock-based compensation expense and intangible amortization. |
Note: schedule may not add due to rounding
Reconciliation of GAAP to Non-GAAP
For the Year Ended December 31, 2006
(in thousands, except per share amounts)
Unaudited
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Revenue | | Cost of
Revenue | | | Research
and
Development | | | Selling,
General and
Administrative | | | Restructuring
and IPR&D | | | Operating
Income | | Other
Income,
net | | Income
Before
Taxes | | Income
Tax
Provision | | Cumulative
Effect of a
Change in
Accounting
Principle | | | Net
Income | | | Net
Income
per
Weighted
Average
Share,
Basic | | | Net
Income
per
Weighted
Average
Share,
Diluted | |
EMC Consolidated GAAP | | $ | 11,155,090 | | $ | 5,241,891 | | | $ | 1,254,193 | | | $ | 3,253,274 | | | $ | 197,974 | | | $ | 1,207,758 | | $ | 182,260 | | $ | 1,390,018 | | $ | 162,664 | | $ | 247 | | | $ | 1,227,601 | | | $ | 0.546 | | | $ | 0.537 | |
Restructuring charges and IPR&D | | | — | | | — | | | | — | | | | — | | | | (201,947 | ) | | | 201,947 | | | — | | | 201,947 | | | 37,833 | | | — | | | | 164,114 | | | $ | 0.073 | | | $ | 0.072 | |
Tax benefits | | | — | | | — | | | | — | | | | — | | | | — | | | | — | | | — | | | — | | | 144,856 | | | — | | | | (144,856 | ) | | $ | (0.064 | ) | | $ | (0.063 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Consolidated Adjusted (1) | | | 11,155,090 | | | 5,241,891 | | | | 1,254,193 | | | | 3,253,274 | | | | (3,973 | ) | | | 1,409,705 | | | 182,260 | | | 1,591,965 | | | 345,353 | | | 247 | | | | 1,246,859 | | | $ | 0.555 | | | $ | 0.546 | |
Stock-based compensation expense | | | — | | | (66,288 | ) | | | (107,481 | ) | | | (224,918 | ) | | | — | | | | 398,687 | | | — | | | 398,687 | | | 89,362 | | | (247 | ) | | | 309,078 | | | $ | 0.137 | | | $ | 0.135 | |
Intangible amortization | | | — | | | (94,333 | ) | | | (12,600 | ) | | | (46,091 | ) | | | — | | | | 153,024 | | | — | | | 153,024 | | | 53,967 | | | — | | | | 99,057 | | | $ | 0.044 | | | $ | 0.043 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Consolidated Non-GAAP (2) | | $ | 11,155,090 | | $ | 5,081,270 | | | $ | 1,134,112 | | | $ | 2,982,265 | | | $ | (3,973 | ) | | $ | 1,961,416 | | $ | 182,260 | | $ | 2,143,676 | | $ | 488,682 | | $ | — | | | $ | 1,654,994 | | | $ | 0.736 | | | $ | 0.724 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure GAAP | | $ | 10,446,054 | | $ | 5,114,440 | | | $ | 1,110,661 | | | $ | 2,948,874 | | | $ | 194,274 | | | $ | 1,077,805 | | $ | 180,352 | | $ | 1,258,157 | | $ | 123,691 | | $ | 72 | | | $ | 1,134,538 | | | $ | 0.505 | | | $ | 0.496 | |
Restructuring charges and IPR&D | | | — | | | — | | | | — | | | | — | | | | (198,247 | ) | | | 198,247 | | | — | | | 198,247 | | | 37,833 | | | — | | | | 160,414 | | | $ | 0.071 | | | $ | 0.070 | |
Tax benefits | | | — | | | — | | | | — | | | | — | | | | — | | | | — | | | — | | | — | | | 144,856 | | | — | | | | (144,856 | ) | | $ | (0.064 | ) | | $ | (0.063 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure Adjusted (3) | | | 10,446,054 | | | 5,114,440 | | | | 1,110,661 | | | | 2,948,874 | | | | (3,973 | ) | | | 1,276,052 | | | 180,352 | | | 1,456,404 | | | 306,380 | | | 72 | | | | 1,150,096 | | | $ | 0.512 | | | $ | 0.503 | |
Stock-based compensation expense | | | — | | | (63,805 | ) | | | (81,139 | ) | | | (202,518 | ) | | | — | | | | 347,462 | | | — | | | 347,462 | | | 77,134 | | | (72 | ) | | | 270,256 | | | $ | 0.120 | | | $ | 0.118 | |
Intangible amortization | | | — | | | (72,491 | ) | | | (12,600 | ) | | | (42,411 | ) | | | — | | | | 127,502 | | | — | | | 127,502 | | | 44,269 | | | — | | | | 83,233 | | | $ | 0.037 | | | $ | 0.036 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
EMC Information Infrastructure Non-GAAP (4) | | $ | 10,446,054 | | $ | 4,978,144 | | | $ | 1,016,922 | | | $ | 2,703,945 | | | $ | (3,973 | ) | | $ | 1,751,016 | | $ | 180,352 | | $ | 1,931,368 | | $ | 427,783 | | $ | — | | | $ | 1,503,585 | | | $ | 0.669 | | | $ | 0.658 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware standalone GAAP | | $ | 703,904 | | $ | 123,382 | | | $ | 148,254 | | | $ | 307,929 | | | $ | 3,700 | | | $ | 120,639 | | $ | 1,908 | | $ | 122,547 | | $ | 36,832 | | $ | 175 | | | $ | 85,890 | | | $ | 0.038 | | | $ | 0.038 | |
GAAP adjustments and eliminations | | | 5,132 | | | 4,069 | | | | (4,722 | ) | | | (3,529 | ) | | | — | | | | 9,314 | | | — | | | 9,314 | | | 2,141 | | | — | | | | 7,173 | | | $ | 0.003 | | | $ | 0.003 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware within EMC GAAP | | | 709,036 | | | 127,451 | | | | 143,532 | | | | 304,400 | | | | 3,700 | | | | 129,953 | | | 1,908 | | | 131,861 | | | 38,973 | | | 175 | | | | 93,063 | | | $ | 0.041 | | | $ | 0.041 | |
IPR&D | | | — | | | — | | | | — | | | | — | | | | (3,700 | ) | | | 3,700 | | | — | | | 3,700 | | | — | | | — | | | | 3,700 | | | $ | 0.002 | | | $ | 0.002 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware within EMC Adjusted (5) | | | 709,036 | | | 127,451 | | | | 143,532 | | | | 304,400 | | | | — | | | | 133,653 | | | 1,908 | | | 135,561 | | | 38,973 | | | 175 | | | | 96,763 | | | $ | 0.043 | | | $ | 0.042 | |
Stock-based compensation expense | | | — | | | (2,483 | ) | | | (26,342 | ) | | | (22,400 | ) | | | — | | | | 51,225 | | | — | | | 51,225 | | | 12,228 | | | (175 | ) | | | 38,822 | | | $ | 0.017 | | | $ | 0.017 | |
Intangible amortization | | | — | | | (21,842 | ) | | | — | | | | (3,680 | ) | | | — | | | | 25,522 | | | — | | | 25,522 | | | 9,698 | | | — | | | | 15,824 | | | $ | 0.007 | | | $ | 0.007 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
VMware within EMC Non-GAAP (6) | | $ | 709,036 | | $ | 103,126 | | | $ | 117,190 | | | $ | 278,320 | | | $ | — | | | $ | 210,400 | | $ | 1,908 | | $ | 212,308 | | $ | 60,899 | | $ | — | | | $ | 151,409 | | | $ | 0.067 | | | $ | 0.066 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Wtd. Average Share O/S | | | | 2,248,431 | | | | 2,286,304 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Represents EMC Consolidated GAAP excluding restructuring charges, IPR&D and special tax benefits. |
| (2) | Represents EMC Consolidated Adjusted excluding stock-based compensation expense and intangible amortization. |
| (3) | Represents EMC Information Infrastructure GAAP excluding restructuring charges, IPR&D and special tax benefits. |
| (4) | Represents EMC Information Infrastructure Adjusted excluding stock-based compensation expense and intangible amortization. |
| (5) | Represents VMware within EMC GAAP excluding IPR&D. |
| (6) | Represents VMware within EMC Adjusted excluding stock-based compensation expense and intangible amortization. |
Note: schedule may not add due to rounding
EMC CORPORATION
Consolidated Balance Sheets
(in thousands, except per share amounts)
Unaudited
| | | | | | | | |
| | | December 31,
2007 | | | December 31,
2006 | |
ASSETS | | | | | | | | |
Current assets: | | | | | | | | |
Cash and cash equivalents | | $ | 4,482,211 | | | $ | 1,828,106 | |
Short-term investments | | | 1,644,703 | | | | 1,521,925 | |
Accounts and notes receivable, less allowance for doubtful accounts of $34,389 and $39,509 | | | 2,307,512 | | | | 1,692,214 | |
Inventories | | | 877,243 | | | | 834,800 | |
Deferred income taxes | | | 475,544 | | | | 418,146 | |
Other current assets | | | 265,889 | | | | 225,396 | |
| | | | | | | | |
Total current assets | | | 10,053,102 | | | | 6,520,587 | |
Long-term investments | | | 1,845,572 | | | | 2,246,290 | |
Property, plant and equipment, net | | | 2,159,396 | | | | 2,035,559 | |
Deferred income taxes | | | — | | | | 104,446 | |
Intangible assets, net | | | 940,077 | | | | 1,003,549 | |
Other assets, net | | | 755,001 | | | | 638,655 | |
Goodwill, net | | | 6,531,506 | | | | 6,017,161 | |
| | | | | | | | |
Total assets | | $ | 22,284,654 | | | $ | 18,566,247 | |
| | | | | | | | |
LIABILITIES & STOCKHOLDERS' EQUITY | | | | | | | | |
Current liabilities: | | | | | | | | |
Accounts payable | | $ | 840,886 | | | $ | 680,263 | |
Accrued expenses | | | 1,696,309 | | | | 1,592,022 | |
Income taxes payable | | | 146,104 | | | | 63,806 | |
Deferred revenue | | | 1,724,909 | | | | 1,325,671 | |
| | | | | | | | |
Total current liabilities | | | 4,408,208 | | | | 3,661,762 | |
Income taxes payable | | | 246,951 | | | | 219,342 | |
Deferred revenue | | | 1,053,394 | | | | 780,124 | |
Deferred income taxes | | | 288,175 | | | | — | |
Long-term convertible debt | | | 3,450,000 | | | | 3,450,000 | |
Other liabilities | | | 127,621 | | | | 129,312 | |
| | | | | | | | |
Total Liabilities | | | 9,574,349 | | | | 8,240,540 | |
Minority interest(1) | | | 188,988 | | | | — | |
Commitments and contingencies | | | | | | | | |
Stockholders' equity: | | | | | | | | |
Series preferred stock, par value $.01; authorized 25,000 shares, none outstanding | | | — | | | | — | |
Common stock, par value $.01; authorized 6,000,000 shares; issued 2,102,187 and 2,122,339 shares | | | 21,022 | | | | 21,223 | |
Additional paid-in capital | | | 3,038,455 | | | | 2,560,935 | |
Retained earnings | | | 9,470,289 | | | | 7,798,112 | |
Accumulated other comprehensive loss | | | (8,449 | ) | | | (54,563 | ) |
| | | | | | | | |
Total stockholders' equity | | | 12,521,317 | | | | 10,325,707 | |
| | | | | | | | |
Total liabilities and stockholders' equity | | $ | 22,284,654 | | | $ | 18,566,247 | |
| | | | | | | | |
| (1) | Represents minority interest in the stockholders' equity of VMware which equaled approximately 14% of VMware's stockholders' equity. |
EMC CORPORATION
Consolidated Statements of Cash Flows
(in thousands)
Unaudited
| | | | | | | | |
| | | Twelve Months Ended | |
| | | December 31,
2007 | | | December 31,
2006 | |
Cash flows from operating activities: | | | | | | | | |
Cash received from customers | | $ | 13,333,489 | | | $ | 11,167,249 | |
Cash paid to suppliers and employees | | | (10,182,600 | ) | | | (8,666,586 | ) |
Dividends and interest received | | | 254,062 | | | | 258,631 | |
Interest paid | | | (76,025 | ) | | | (26,804 | ) |
Income taxes paid | | | (202,324 | ) | | | (592,066 | ) |
| | | | | | | | |
Net cash provided by operating activities | | | 3,126,602 | | | | 2,140,424 | |
| | | | | | | | |
Cash flows from investing activities: | | | | | | | | |
Additions to property, plant and equipment | | | (699,038 | ) | | | (718,095 | ) |
Capitalized software development costs | | | (232,047 | ) | | | (192,895 | ) |
Purchases of short and long-term available for sale securities | | | (6,204,762 | ) | | | (6,611,698 | ) |
Sales and maturities of short and long-term available for sale securities | | | 6,527,027 | | | | 7,865,264 | |
Proceeds from the sale of EMC's interest in VMware to Cisco | | | 150,000 | | | | — | |
Business acquisitions, net of cash acquired | | | (692,003 | ) | | | (2,618,376 | ) |
Other | | | (12,074 | ) | | | (20,860 | ) |
| | | | | | | | |
Net cash used in investing activities | | | (1,162,897 | ) | | | (2,296,660 | ) |
| | | | | | | | |
Cash flows from financing activities: | | | | | | | | |
Issuance of common stock from the exercise of stock options | | | 782,449 | | | | 257,789 | |
Proceeds from the sale of VMware's common stock | | | 1,253,533 | | | | — | |
Issuance of VMware's common stock from the exercise of stock options | | | 2,760 | | | | — | |
Repurchase of EMC common stock | | | (1,453,669 | ) | | | (3,655,404 | ) |
Excess tax benefits from stock based compensation | | | 91,782 | | | | 20,025 | |
Payment of long-term and short-term obligations | | | (17,178 | ) | | | (2,331,587 | ) |
Proceeds from long-term and short-term obligations | | | 19,815 | | | | 5,654,004 | |
Purchase of call options | | | — | | | | (669,076 | ) |
Sale of warrants | | | — | | | | 391,144 | |
Debt issuance costs | | | — | | | | (58,863 | ) |
| | | | | | | | |
Net cash provided by (used in) financing activities | | | 679,492 | | | | (391,968 | ) |
| | | | | | | | |
Effect of exchange rate changes on cash | | | 10,908 | | | | 53,940 | |
| | | | | | | | |
Net increase (decrease) in cash and cash equivalents | | | 2,654,105 | | | | (494,264 | ) |
Cash and cash equivalents at beginning of period | | | 1,828,106 | | | | 2,322,370 | |
| | | | | | | | |
Cash and cash equivalents at end of period | | $ | 4,482,211 | | | $ | 1,828,106 | |
| | | | | | | | |
Reconciliation of net income to net cash provided by operating activities: | | | | | | | | |
Net income | | $ | 1,665,668 | | | $ | 1,227,601 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | | | | | |
Cumulative effect of a change in accounting principle | | | — | | | | (247 | ) |
Minority interest in VMware | | | 15,455 | | | | — | |
Net gain on investments, including gain on sale of VMware stock | | | (137,330 | ) | | | — | |
Depreciation and amortization | | | 917,274 | | | | 764,162 | |
Non-cash restructuring and other special charges | | | 3,778 | | | | 75,889 | |
Stock-based compensation expense | | | 367,404 | | | | 398,687 | |
Increase in provision for doubtful accounts | | | 8,885 | | | | 10,290 | |
Deferred income taxes, net | | | (68,397 | ) | | | (131,966 | ) |
Excess tax benefits from stock based compensation | | | (91,782 | ) | | | (20,025 | ) |
Other | | | 3,850 | | | | 27,271 | |
Changes in assets and liabilities, net of acquisitions: | | | | | | | | |
Accounts and notes receivable | | | (576,422 | ) | | | (232,295 | ) |
Inventories | | | 13,574 | | | | (69,567 | ) |
Other assets | | | (97,277 | ) | | | (31,822 | ) |
Accounts payable | | | 155,296 | | | | 59,631 | |
Accrued expenses | | | 35,934 | | | | 133,856 | |
Income taxes payable | | | 243,216 | | | | (297,936 | ) |
Deferred revenue | | | 670,820 | | | | 234,164 | |
Other liabilities | | | (3,344 | ) | | | (7,269 | ) |
| | | | | | | | |
Net cash provided by operating activities | | $ | 3,126,602 | | | $ | 2,140,424 | |
| | | | | | | | |
EMC CORPORATION
Reconciliation of Cash Flow from Operations to Free Cash Flow
(in thousands)
Unaudited
| | | | | | | | | | | | | | | | |
| | | Q4 2006 | | | Q4 2007 | | | 2006 | | | 2007 | |
EMC Consolidated: | | | | | | | | | | | | | | | | |
Cash flow from Operations | | $ | 652,927 | | | $ | 978,709 | | | $ | 2,140,424 | | | $ | 3,126,602 | |
Capital Expenditures | | | (212,041 | ) | | | (197,576 | ) | | | (718,095 | ) | | | (699,038 | ) |
Capitalized Software | | | (40,281 | ) | | | (68,697 | ) | | | (192,895 | ) | | | (232,047 | ) |
| | | | | | | | | | | | | | | | |
Free Cash Flow | | $ | 400,605 | | | $ | 712,436 | | | $ | 1,229,434 | | | $ | 2,195,517 | |
| | | | |
VMware within EMC: | | | | | | | | | | | | | | | | |
Cash flow from Operations | | $ | 100,253 | | | $ | 84,134 | | | $ | 390,152 | | | $ | 615,465 | |
Capital Expenditures | | | (45,563 | ) | | | (45,101 | ) | | | (115,269 | ) | | | (204,141 | ) |
Capitalized Software | | | (2,150 | ) | | | (14,877 | ) | | | (31,752 | ) | | | (48,022 | ) |
| | | | | | | | | | | | | | | | |
Free Cash Flow | | $ | 52,540 | | | $ | 24,156 | | | $ | 243,131 | | | $ | 363,302 | |
| | | | |
EMC Information Infrastructure: | | | | | | | | | | | | | | | | |
Cash flow from Operations | | $ | 552,674 | | | $ | 894,575 | | | $ | 1,750,272 | | | $ | 2,511,137 | |
Capital Expenditures | | | (166,478 | ) | | | (152,475 | ) | | | (602,826 | ) | | | (494,897 | ) |
Capitalized Software | | | (38,131 | ) | | | (53,820 | ) | | | (161,143 | ) | | | (184,025 | ) |
| | | | | | | | | | | | | | | | |
Free Cash Flow | | $ | 348,065 | | | $ | 688,280 | | | $ | 986,303 | | | $ | 1,832,215 | |
Free cash flow for VMware and EMC excludes the change in the intercompany due to/due from balances. Additionally, capital expenditures for VMware's headquarters facilities which were reimbursed by EMC during 2006 and 2007 have been classified as VMware capital expenditures as incurred. Including the change in the intercompany due to/due from balances and excluding capital expenditures for VMware's headquarters facilities as VMware expenditures as incurred results in free cash flow for VMware of $109,744 for the quarter ended December 31, 2006, $103,596 for the quarter ended December 31, 2007, $194,766 for the year ended December 31, 2006 and $368,306 for the year ended December 31, 2007. Including the change in the intercompany due to/due from balances and excluding capital expenditures for VMware's headquarters facilities as VMware expenditures as incurred results in free cash flow for EMC Information Infrastructure of $290,861 for the quarter ended December 31, 2006, $608,840 for the quarter ended December 31, 2007, $1,034,668 for the year ended December 31, 2006 and $1,827,211 for the year ended December 31, 2007.
EMC Corporation
Supplemental Financial Data
Revenue Analysis
(in thousands)
Unaudited
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Revenue Components | |
| | | Q1 2006 | | | Q2 2006 | | | Q3 2006 | | | Q4 2006 | | | YTD 2006 | | | Q1 2007 | | | Q2 2007 | | | Q3 2007 | | | Q4 2007 | | | YTD 2007 | |
| | | | | | | | |
Revenues | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Systems | | $ | 1,226,928 | | | $ | 1,151,600 | | | $ | 1,299,321 | | | $ | 1,462,777 | | | $ | 5,140,626 | | | $ | 1,305,766 | | | $ | 1,354,438 | | | $ | 1,411,367 | | | $ | 1,688,565 | | | $ | 5,760,136 | |
Software: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Software License | | | 621,602 | | | | 681,998 | | | | 736,331 | | | | 897,485 | | | | 2,937,416 | | | | 806,660 | | | | 867,917 | | | | 921,517 | | | | 1,055,746 | | | | 3,651,840 | |
Software Maintenance | | | 303,202 | | | | 315,189 | | | | 345,650 | | | | 371,163 | | | | 1,335,204 | | | | 382,080 | | | | 400,233 | | | | 426,198 | | | | 472,264 | | | | 1,680,775 | |
| | | | | | | | |
Total Software License & Maintenance | | | 924,804 | | | | 997,187 | | | | 1,081,981 | | | | 1,268,648 | | | | 4,272,620 | | | | 1,188,740 | | | | 1,268,150 | | | | 1,347,715 | | | | 1,528,010 | | | | 5,332,615 | |
Professional, Systems Maintenance and Other Services | | | 396,081 | | | | 423,525 | | | | 431,989 | | | | 481,471 | | | | 1,733,066 | | | | 478,972 | | | | 500,798 | | | | 539,609 | | | | 613,095 | | | | 2,132,474 | |
| | | 2,547,813 | | | | 2,572,312 | | | | 2,813,291 | | | | 3,212,896 | | | | 11,146,312 | | | | 2,973,478 | | | | 3,123,386 | | | | 3,298,691 | | | | 3,829,670 | | | | 13,225,225 | |
Other Businesses | | | 2,874 | | | | 2,211 | | | | 2,015 | | | | 1,678 | | | | 8,778 | | | | 1,527 | | | | 1,286 | | | | 1,063 | | | | 1,104 | | | | 4,980 | |
| | | | | | | | |
Total Consolidated Revenues | | $ | 2,550,687 | | | $ | 2,574,523 | | | $ | 2,815,306 | | | $ | 3,214,574 | | | $ | 11,155,090 | | | $ | 2,975,005 | | | $ | 3,124,672 | | | $ | 3,299,754 | | | $ | 3,830,774 | | | $ | 13,230,205 | |
| | | | | | | | |
Percentage impact to EMC revenue growth rate due to changes in exchange rates from the prior year | | | (2.1 | )% | | | (1.1 | )% | | | 0.7 | % | | | 1.4 | % | | | (0.2 | )% | | | 2.1 | % | | | 2.1 | % | | | 1.8 | % | | | 3.2 | % | | | 2.3 | % |
EMC Corporation
Supplemental Financial Data
Revenue Analysis
(in thousands)
Unaudited
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Supplemental Revenue Data | | |
| | | Q1 2006 | | Q2 2006 | | Q3 2006 | | Q4 2006 | | YTD 2006 | | | | Q1 2007 | | Q2 2007 | | Q3 2007 | | Q4 2007 | | YTD 2007 | | |
| | | | | | |
Storage Systems Revenue | | $ | 1,222,624 | | $ | 1,147,892 | | $ | 1,295,524 | | $ | 1,458,740 | | $ | 5,124,780 | | | | $ | 1,302,740 | | $ | 1,347,357 | | $ | 1,405,139 | | $ | 1,682,395 | | $ | 5,737,631 | | |
Storage Software License Revenue | | | 446,720 | | | 493,002 | | | 524,679 | | | 550,856 | | | 2,015,257 | | | | | 486,558 | | | 512,521 | | | 515,056 | | | 561,622 | | | 2,075,757 | | |
Storage Maintenance and Services Revenue | | | 583,010 | | | 610,015 | | | 619,496 | | | 656,020 | | | 2,468,541 | | | | | 637,630 | | | 668,140 | | | 703,092 | | | 788,630 | | | 2,797,492 | | |
| | | | | | |
Total Storage Revenue | | $ | 2,252,354 | | $ | 2,250,909 | | $ | 2,439,699 | | $ | 2,665,616 | | $ | 9,608,578 | | | | $ | 2,426,928 | | $ | 2,528,018 | | $ | 2,623,287 | | $ | 3,032,647 | | $ | 10,610,880 | | |
| | | | | | |
Content Management and Archiving Systems Revenue | | $ | 4,304 | | $ | 3,708 | | $ | 87 | | $ | 522 | | $ | 8,621 | | | | $ | 68 | | $ | 1,708 | | $ | 1,485 | | $ | 2,157 | | $ | 5,418 | | |
Content Management and Archiving Software License Revenue | | | 83,038 | | | 75,161 | | | 59,092 | | | 106,302 | | | 323,593 | | | | | 68,472 | | | 69,046 | | | 79,247 | | | 115,305 | | | 332,070 | | |
Content Management and Archiving Maintenance and Services Revenue | | | 79,978 | | | 87,253 | | | 90,173 | | | 96,172 | | | 353,576 | | | | | 103,658 | | | 102,848 | | | 108,580 | | | 120,664 | | | 435,750 | | |
| | | | | | |
Total Content Management and Archiving Revenue | | $ | 167,320 | | $ | 166,122 | | $ | 149,352 | | $ | 202,996 | | $ | 685,790 | | | | $ | 172,198 | | $ | 173,602 | | $ | 189,312 | | $ | 238,126 | | $ | 773,238 | | |
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Security Systems Revenue | | $ | — | | $ | — | | $ | 3,710 | | $ | 3,515 | | $ | 7,225 | | | | $ | 2,958 | | $ | 5,373 | | $ | 4,743 | | $ | 4,013 | | $ | 17,087 | | |
Security Software License Revenue | | | — | | | — | | | 27,084 | | | 76,835 | | | 103,919 | | | | | 81,934 | | | 81,300 | | | 82,979 | | | 94,604 | | | 340,817 | | |
Security Maintenance and Services Revenue | | | — | | | — | | | 6,961 | | | 33,581 | | | 40,542 | | | | | 34,969 | | | 38,282 | | | 45,142 | | | 48,978 | | | 167,371 | | |
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Total Security Revenue | | $ | — | | $ | — | | $ | 37,755 | | $ | 113,931 | | $ | 151,686 | | | | $ | 119,861 | | $ | 124,955 | | $ | 132,864 | | $ | 147,595 | | $ | 525,275 | | |
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EMC Information Infrastructure Systems Revenue | | $ | 1,226,928 | | $ | 1,151,600 | | $ | 1,299,321 | | $ | 1,462,777 | | $ | 5,140,626 | | | | $ | 1,305,766 | | $ | 1,354,438 | | $ | 1,411,367 | | $ | 1,688,565 | | $ | 5,760,136 | | |
EMC Information Infrastructure Software License Revenue | | | 529,758 | | | 568,163 | | | 610,855 | | | 733,993 | | | 2,442,769 | | | | | 636,964 | | | 662,867 | | | 677,282 | | | 771,531 | | | 2,748,644 | | |
EMC Information Infrastructure Maintenance and Services Revenue | | | 662,988 | | | 697,268 | | | 716,630 | | | 785,773 | | | 2,862,659 | | | | | 776,257 | | | 809,270 | | | 856,814 | | | 958,272 | | | 3,400,613 | | |
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Total EMC Information Infrastructure Revenue | | $ | 2,419,674 | | $ | 2,417,031 | | $ | 2,626,806 | | $ | 2,982,543 | | $ | 10,446,054 | | | | $ | 2,718,987 | | $ | 2,826,575 | | $ | 2,945,463 | | $ | 3,418,368 | | $ | 11,909,393 | | |
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VMware Software License Revenue | | $ | 91,844 | | $ | 113,835 | | $ | 125,476 | | $ | 163,492 | | $ | 494,647 | | | | $ | 169,696 | | $ | 205,050 | | $ | 244,235 | | $ | 284,215 | | $ | 903,196 | | |
VMware Maintenance and Services Revenue | | | 39,169 | | | 43,657 | | | 63,024 | | | 68,539 | | | 214,389 | | | | | 86,322 | | | 93,047 | | | 110,056 | | | 128,191 | | | 417,616 | | |
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Total VMware Revenue | | $ | 131,013 | | $ | 157,492 | | $ | 188,500 | | $ | 232,031 | | $ | 709,036 | | | | $ | 256,018 | | $ | 298,097 | | $ | 354,291 | | $ | 412,406 | | $ | 1,320,812 | | |
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