Magellan Midstream Extends Open Season for Proposed Saddlehorn Pipeline Oct 21, 2014 04:03PM

TULSA, Okla., Oct. 21, 2014 /PRNewswire/ -- Magellan Midstream Partners, L.P. (NYSE: MMP) announced today an extension of the open season for commitments on the proposed Saddlehorn Pipeline to transport various grades of crude oil from the Niobrara shale to the partnership's storage facilities in Cushing, Oklahoma. Binding commitments are now due by 5:00 p.m. Central Time on Nov. 6, 2014.

The proposed Saddlehorn Pipeline includes construction of an approximate 600-mile, 20-inch diameter pipeline capable of transporting up to 400,000 barrels per day of crude oil from Platteville, Colorado to Magellan's storage facilities in Cushing. Magellan expects to use its existing right-of-way for a significant portion of the pipeline route.

Subject to sufficient commitments from shippers and receipt of any necessary permits and regulatory approvals, the Saddlehorn Pipeline could be operational during the second quarter of 2016.

For customer inquiries about the open season, please contact Chris Nalley at (918) 574-7710 or chris.nalley@magellanlp.com. More information about the open season is available at www.magellanlp.com/tariffs.aspx.

About Magellan Midstream Partners, L.P.Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership that primarily transports, stores and distributes refined petroleum products and crude oil. The partnership owns the longest refined petroleum products pipeline system in the country, with access to nearly 50% of the nation's refining capacity, and can store more than 90 million barrels of petroleum products such as gasoline, diesel fuel and crude oil. More information is available at www.magellanlp.com.

Portions of this document constitute forward-looking statements as defined by federal law. Although management believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Among the key risk factors that may have a direct impact on the decision to proceed with the opportunity described in this news release are: (1) the ability to negotiate and sign definitive agreements with potential customers; (2) the ability to obtain required rights-of-way, permits and other governmental approvals on a timely basis; (3) the ability to justify the economics of this potential opportunity once the necessary engineering and commercial assessments are complete; (4) price fluctuations and overall demand for crude oil; (5) changes in the partnership's tariff rates or other terms imposed by state or federal regulatory agencies; (6) the occurrence of an operational hazard or unforeseen interruption; (7) disruption in the debt and equity markets that negatively impacts the partnership's ability to finance its capital spending and (8) failure of customers or vendors to meet or continue contractual obligations. Additional information about issues that could lead to material changes in performance is contained in the partnership's filings with the Securities and Exchange Commission. The partnership undertakes no obligation to revise these forward-looking statements to reflect events or circumstances occurring after today's date.

Contact: 

Investors:

Media:

Paula Farrell 

Bruce Heine

(918) 574-7650 

(918) 574-7010

paula.farrell@magellanlp.com  

bruce.heine@magellanlp.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/magellan-midstream-extends-open-season-for-proposed-saddlehorn-pipeline-666468046.html

SOURCE Magellan Midstream Partners, L.P.


Akron Biotech Expanding to New, State-of-the-Art Biotechnology Facility Oct 21, 2014 02:17PM

Move Will Enable Akron R&D and Manufacturing to Meet Growing Demand for

Regenerative Medicine Products and Increasing Quality Standards

BOCA RATON, Fla.--(BUSINESS WIRE)-- Akron Biotechnology, LLC (Akron Biotech), which provides novel technologies for cell therapy and regenerative medicine discovery, development, and commercialization, today announced its expansion and move to a new, larger facility. Akron will continue to be headquartered in Boca Raton, FL, while significantly increasing space for its R&D and manufacturing operations.

“The expansion will play an increasingly important role in the company’s growth and allow Akron to more strongly meet the growing demand for validated products and processes for the regenerative medicine industry,” said Claudia Zylberberg, PhD, Founder and CEO of Akron Biotech. “Our commitment to providing our customers with quality products and comprehensive solutions to meet their specific needs has resulted in consistent growth, making Akron a key player in the regenerative medicine/biotechnology arena.”

While the company's headquarters and operations have already moved to the new physical address, the construction of its new state-of-the-art biotechnology facility is still under way. Once completed, the facility will house over 12,000 sq. ft. of laboratory and manufacturing space. It will focus on the translation and commercialization of innovative discoveries as well as manufacturing for both research and clinical use.

Akron's new facility will be one of the largest of its kind in Florida and will produce regulated products on a large scale for academic and industry clients from both the U.S. and abroad. The facility will enhance the company’s current capacity with several class 10,000 and class 100 clean rooms -- which will accommodate small and large scale manufacturing -- and cell culture labs for bioassay development and validation.

The augmented capacity will further expand Akron's proven expertise in cGMP product manufacturing and process development, providing its customers with greater flexibility in manufacturing and enhanced environmental control as well as increased support for documentation and compliance.

About Akron Biotech

As an ISO certified global supplier, Akron Biotech manufactures ancillary materials and provides novel technologies for cell therapy and regenerative medicine discovery, development, and commercialization, meeting the industry’s quality standards worldwide. Akron Biotech has a strategic focus on delivering biological materials, technologies, and services for the regenerative medicine industry. For more information please visit www.akronbiotech.com.

Akron Biotechnology, LLC

Sonia I. Suarez, 561-750-6120

ssuarez@akronbiotech.com

Source: Akron Biotechnology, LLC


CN announces new share repurchase program and declares fourth-quarter 2014 cash dividend Oct 21, 2014 04:02PM

MONTREAL, Oct. 21, 2014 /PRNewswire/ - CN (TSX: CNR) (NYSE: CNI) announced today that its Board of Directors has approved a new share repurchase program.  CN believes that the repurchase of its shares represents an appropriate and beneficial use of the Company's funds.

Luc Jobin, CN executive vice-president and chief financial officer, said: "Our record speaks for itself. We continue to invest significantly in the business while maintaining a focus on consistently enhancing shareholder returns by increasing dividends and repurchasing shares. Since its privatization, CN has increased its dividends per share by 16 per cent on average every year for 18 consecutive years and has created significant value for shareholders through regular share repurchases since its first buyback program in 2000."   

Today, CN's Board of Directors authorized a new normal-course-issuer bid to purchase, for cancellation, up to 28 million common shares, representing 3.9 per cent of the 709,302,712 common shares issued and outstanding of the Company not held by insiders on Oct. 15, 2014. On that date, 814,717,092 CN common shares were issued and outstanding.

The new repurchase program – starting on Oct. 24, 2014, and ending no later than Oct. 23, 2015 – will be conducted through a combination of discretionary transactions and automatic repurchase plan through the facilities of the Toronto and New York stock exchanges, or alternative trading systems, if eligible, and will conform to their regulations. Toronto Stock Exchange (TSX) rules will permit CN to purchase daily, through TSX facilities, a maximum of 256,297 common shares under the Company's new repurchase program. Purchases under the normal-course-issuer bid will be made by means of open market transactions or such other means as the TSX or a securities regulatory authority may permit, including private agreements under an issuer bid exemption order issued by securities regulatory authorities in Canada.

The price to be paid by CN for any common shares will be the market price at the time of acquisition, plus brokerage fees, and purchases made under an issuer bid exemption order will be at a discount to the prevailing market price as per the terms of the order.

CN repurchased 22.3 million common shares under its share repurchase program announced in October 2013, at a weighted-average price of C$62.87 per share, excluding brokerage fees, returning C$1.4 billion to shareholders.

CN also announced today that its Board of Directors has approved a fourth-quarter 2014 dividend on the Company's common shares outstanding. A quarterly dividend of twenty-five cents (C$0.25) per common share will be paid on Dec. 31, 2014, to shareholders of record at the close of business on Dec. 10, 2014. 

Forward-Looking Statements Certain information included in this news release constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws, including potential purchases of common shares for cancellation under a normal-course-issuer bid. CN cautions that, by their nature, these forward-looking statements involve risk, uncertainties and assumptions, and are subject to the discretion of CN's Board of Directors in respect of the declaration of dividends. The Company cautions that its assumptions may not materialize and that the current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty.

Important risk factors that could affect the above forward-looking statements include, but are not limited to, the effects of general economic and business conditions, industry competition, inflation, currency and interest rate fluctuations, changes in fuel prices, legislative and/or regulatory developments, compliance with environmental laws and regulations, actions by regulators, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, labor negotiations and disruptions, environmental claims, uncertainties of investigations, proceedings or other types of claims and litigation, risks and liabilities arising from derailments, and other risks and assumptions detailed from time to time in reports filed by CN with securities regulators in Canada and the United States.  Reference should be made to "Management's Discussion and Analysis" in CN's annual and interim reports, Annual Information Form and Form 40-F filed with Canadian and U.S. securities regulators, available on CN's website, for a summary of major risks and assumptions.

CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable Canadian securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

CN is a true backbone of the economy, transporting approximately C$250 billion worth of goods annually for a wide range of business sectors, ranging from resource products to manufactured products to consumer goods, across a rail network spanning Canada and mid-America. CN – Canadian National Railway Company, along with its operating railway subsidiaries -- serves the cities and ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth, Minn./Superior, Wis., and Jackson, Miss., with connections to all points in North America. For more information on CN, visit the company's website at www.cn.ca.

 

SOURCE CN


VMware Reports Third Quarter 2014 Results Oct 21, 2014 04:01PM

PALO ALTO, CA -- (Marketwired) -- 10/21/14 -- VMware, Inc. (NYSE: VMW), the global leader in virtualization and cloud infrastructure, today announced financial results for the third quarter of 2014:

  • Revenues for the third quarter were $1.52 billion, an increase of 18% from the third quarter of 2013.
  • Operating income for the third quarter was $242 million, a decrease of 16% from the third quarter of 2013, reflecting the impact of the AirWatch acquisition. Non-GAAP operating income for the third quarter was $460 million, an increase of 5% from the third quarter of 2013, also reflecting the impact of the AirWatch acquisition, as expected.
  • Net income for the third quarter was $194 million, or $0.45 per diluted share, down 26% per diluted share compared to $261 million, or $0.60 per diluted share, for the third quarter of 2013. Non-GAAP net income for the quarter was $377 million, or $0.87 per diluted share, up 3% per diluted share compared to $363 million, or $0.84 per diluted share, for the third quarter of 2013. Both GAAP and Non-GAAP results on a year-over-year basis primarily reflect the acquisition of AirWatch, completed in the first quarter of 2014, as expected
  • Cash, cash equivalents and short-term investments were $7.09 billion, and unearned revenues were $4.37 billion as of September 30, 2014.

"In every region of the world, customers are making a long-term bet on VMware to help them transform their businesses and embrace a new model for IT," said Pat Gelsinger, CEO of VMware. "Customers are looking to VMware for technology choices that liberate them from the constraints of hardware, and which offer a new model for security, optimized for a world of millions of applications."

"Our third-quarter revenue grew 18%, reflecting strong customer adoption of our products and services," said Jonathan Chadwick, chief financial officer. "We are especially pleased by the performance of our newer businesses such as mobility, networking, storage, and hybrid cloud, which made significant progress in delivering against our long-term strategy."

Recent Highlights & Strategic Announcements

  • At VMworld 2014, VMware recently hosted over 32,000 customers, partners and influencers in San Francisco and Barcelona while announcing a wave of new products and partnerships across the company's portfolio.
  • VMware introduced EVO: RAIL", a hyper-converged infrastructure appliance that helps customers streamline the deployment and scale-out of Software-Defined IT infrastructure. VMware EVO: RAIL is the first solution in a family of hyper-converged infrastructure offerings from VMware.
  • VMware continues to rapidly expand the capabilities and global footprint of its vCloud Air" hybrid cloud platform. At VMworld 2014 Europe last week, the company announced a new VMware-operated data center in Germany, which will help address German and EU compliance and data protection regulations.
  • VMware recently unveiled the vRealize" Suite 6, its cloud management platform purpose-built for managing the hybrid cloud. VMware also unveiled a major update of VMware vRealize Operations" and the new VMware vRealize Code Stream" to enable DevOps teams to deliver frequent, reliable software releases.
  • VMware announced a joint initiative with Docker, Google and Pivotal to help enterprises run and manage container-based applications on a common platform. In addition, the company announced the VMware Integrated OpenStack offering that enables IT organizations to quickly and cost-effectively deliver developer-friendly OpenStack APIs and tools on top of their existing VMware infrastructure.
  • VMware announced strategic technology and go-to-market NSX" partnerships with Arista Networks, F5 and HP, as well as a technology and global reseller agreement with Dell to deliver NSX solutions worldwide. In addition, VMware announced a partnership with Palo Alto Networks to deliver unified security for the hybrid cloud and announced plans with CSC for their new web scale Infrastructure-as-a-Service platform, which will be built on OpenStack and VMware's software-defined data center solutions, including NSX.
  • VMware acquired CloudVolumes, a leading provider of real-time application delivery technology. The company also unveiled VMware Workspace" Suite, a new integrated platform for managing applications, data and devices, which offers a single, integrated portal to access AirWatch by VMware solutions, and VMware Horizon. In addition, VMware's end-user computing business announced key partnerships with HP, SAP, NVIDIA and Google.

The company will host a conference call today at 2:00 p.m. PT/ 5:00 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, seven quarters of historical data for revenues and unearned revenues, excluding revenues generated each period by the products and services contributed to Pivotal Software, Inc. on April 1, 2013 and the products and services associated with the divestitures that occurred in 2013 will also be made available at http://ir.vmware.com in conjunction with the conference call.

About VMware

VMware is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2013 revenues of $5.21 billion, VMware has more than 500,000 customers and 75,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

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 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; and other news, blogs and announcements that VMware may post from time to time that investors may find useful or interesting.

VMware, VMworld, EVO: RAIL, vCloud Air, vRealize, vRealize Operations, vRealize Code Stream, NSX, VMware Workstation, and Horizon are registered trademarks or trademarks of VMware or its subsidiaries in the United States and other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective organizations. 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 expectations for the transformation of IT; continued customer adoption of VMware products and services; future hyper-converged infrastructure offerings; the expansion of vCloud Air, including a new data center in Germany; and expected product capabilities and benefits to customers arising from VMware's joint initiative with Docker, Google and Pivotal, the VMware Integrated OpenStack offering, NSX and end-user computing partnerships, NSX reseller arrangements, VMware's plans with CSC for a new web scale Infrastructure-as-a-Service platform and newly announced VMware products and services, such as EVO: RAIL, vRealize Suite 6, VMware vRealize Code Stream and VMware Workspace Suite. 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: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in consumer, government and information technology spending; (iii) 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 industries, and new product and marketing initiatives by VMware's competitors; (iv) VMware's customers' ability to transition to new products and computing strategies such as cloud computing, desktop virtualization and the software defined data center; (v) the uncertainty of customer acceptance of emerging technology; (vi) changes in the willingness of customers to enter into longer term licensing and support arrangements; (vii) rapid technological changes in the virtualization software and cloud, end user and mobile computing industries; (viii) changes to product and service development timelines; (ix) VMware's relationship with EMC Corporation and EMC's ability to control matters requiring stockholder approval, including the election of VMware's board members; (x) VMware's ability to protect its proprietary technology; (xi) VMware's ability to attract and retain highly qualified employees; and (xii) the successful integration of acquired companies and assets into VMware. These forward-looking statements 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)


                                        For the Three       For the Nine
                                        Months Ended        Months Ended
                                        September 30,       September 30,
                                     ------------------  ------------------
                                       2014      2013      2014      2013
                                     --------  --------  --------  --------

Revenues:
  License                            $    639  $    564  $  1,814  $  1,583
  Services                                876       725     2,519     2,141
                                     --------  --------  --------  --------
Total revenues                          1,515     1,289     4,333     3,724
Operating expenses (1):
  Cost of license revenues                 46        51       143       163
  Cost of services revenues               196       132       519       375
  Research and development                327       266       936       797
  Sales and marketing                     529       449     1,550     1,308
  General and administrative              169       103       498       298
  Realignment charges                       6         1         4        64
                                     --------  --------  --------  --------
Operating income                          242       287       683       719
Investment income                          11         7        28        21
Interest expense with EMC                  (7)       (1)      (18)       (3)
Other income (expense), net                (2)       15        (2)       29
                                     --------  --------  --------  --------
Income before income taxes                244       308       691       766
Income tax provision                       50        47       131        87
                                     --------  --------  --------  --------
Net income                           $    194  $    261  $    560  $    679
                                     ========  ========  ========  ========

Net income per weighted-average
 share, basic for Class A and Class
 B                                   $   0.45  $   0.61  $   1.30  $   1.58

Net income per weighted-average
 share, diluted for Class A and
 Class B                             $   0.45  $   0.60  $   1.29  $   1.57

Weighted-average shares, basic for
 Class A and Class B                  430,463   429,709   430,408   428,690
Weighted-average shares, diluted for
 Class A and Class B                  434,118   433,182   434,656   432,916
______
(1) Includes stock-based
 compensation as follows:
  Cost of license revenues           $      1  $      1  $      2  $      2
  Cost of services revenues                11         7        31        21
  Research and development                 61        52       187       165
  Sales and marketing                      43        37       128       106
  General and administrative               17        16        51        42
  Realignment charges                       -         -         -         6




                                VMware, Inc.

                         CONSOLIDATED BALANCE SHEETS
  (amounts in millions, except per share amounts, and shares in thousands)
                                 (unaudited)


                                                September 30,  December 31,
                                                    2014           2013
                                               -------------- --------------

                    ASSETS
Current assets:
  Cash and cash equivalents                    $        2,293 $        2,305
  Short-term investments                                4,801          3,870
  Accounts receivable, net of allowance for
   doubtful accounts of $2                                957          1,220
  Deferred tax asset                                      232            190
  Other current assets                                    249             96
                                               -------------- --------------
Total current assets                                    8,532          7,681
Property and equipment, net                               969            845
Other assets, net                                         155            107
Deferred tax asset                                        156             60
Intangible assets, net                                    772            607
Goodwill                                                3,935          3,027
                                               -------------- --------------
    Total assets                               $       14,519 $       12,327
                                               ============== ==============

     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable                             $          150 $          109
  Accrued expenses and other                              779            608
  Due to related parties, net                              17             18
  Unearned revenues                                     2,725          2,558
                                               -------------- --------------
Total current liabilities                               3,671          3,293
Note payable to EMC                                     1,500            450
Unearned revenues                                       1,650          1,534
Other liabilities                                         262            234
                                               -------------- --------------
    Total liabilities                                   7,083          5,511
Commitments and contingencies
Stockholders' equity:
  Class A common stock, par value $.01;
   authorized 2,500,000 shares; issued and
   outstanding 131,103 and 130,349 shares                   1              1
  Class B convertible common stock, par value
   $.01; authorized 1,000,000 shares; issued
   and outstanding 300,000 shares                           3              3
  Additional paid-in capital                            3,553          3,496
  Accumulated other comprehensive income                    1              4
  Retained earnings                                     3,872          3,312
                                               -------------- --------------
    Total VMware, Inc.'s stockholders' equity           7,430          6,816
  Non-controlling interests                                 6        
                                               -------------- --------------
      Total stockholders' equity                        7,436          6,816
                                               -------------- --------------
        Total liabilities and stockholders'
         equity                                $       14,519 $       12,327
                                               ============== ==============




                                VMware, Inc.

                   CONSOLIDATED STATEMENTS OF CASH FLOWS
                               (in millions)
                                (unaudited)


                                        For the Three       For the Nine
                                        Months Ended        Months Ended
                                        September 30,       September 30,
                                     ------------------  ------------------
                                       2014      2013      2014      2013
                                     --------  --------  --------  --------

Operating activities:
Net income                           $    194  $    261  $    560  $    679
Adjustments to reconcile net income
 to net cash provided by operating
 activities:
  Depreciation and amortization            91        82       255       261
  Stock-based compensation                133       113       399       332
  Excess tax benefits from stock-
   based compensation                      (8)      (12)      (34)      (60)
  Deferred income taxes, net              (36)       32      (115)       41
  Non-cash realignment charges              -         -         -        15
  Gain on disposition of certain
   lines of business and other, net         -       (12)        -       (31)
  Other                                     -         4         -         3
  Changes in assets and liabilities,
   net of acquisitions:
    Accounts receivable                   163       152       293       360
    Other assets                          (27)        4       (70)      (72)
    Due to/from related parties, net       57        49        25        84
    Accounts payable                       49        (2)       41        16
    Accrued expenses                      (60)      (69)       (4)      (91)
    Income taxes receivable from EMC        -         -         -        15
    Income taxes payable                   65        (2)      178        (4)
    Unearned revenues                     (15)       37       237       300
                                     --------  --------  --------  --------
Net cash provided by operating
 activities                               606       637     1,765     1,848
                                     --------  --------  --------  --------

Investing activities:
Additions to property and equipment      (100)      (94)     (254)     (247)
Purchases of available-for-sale
 securities                              (998)     (573)   (2,974)   (2,227)
Sales of available-for-sale
 securities                               610       253     1,551     1,072
Maturities of available-for-sale
 securities                               162       227       483       597
Proceeds from disposition of certain
 lines of business                          -         6         -        37
Purchase of strategic investments          (1)       (7)      (41)       (7)
Business acquisitions, net of cash
 acquired                                 (44)        -    (1,112)     (184)
Increase in restricted cash                 -        (1)      (76)       (3)
Other investing                             -         -       (10)       (1)
                                     --------  --------  --------  --------
Net cash used in investing
 activities                              (371)     (189)   (2,433)     (963)
                                     --------  --------  --------  --------

Financing activities:
Proceeds from issuance of common
 stock                                     59        70       158       185
Proceeds from issuance of note
 payable to EMC                             -         -     1,500         -
Repayment of note payable to EMC            -         -      (450)        -
Reduction in capital from EMC               -         -       (24)        -
Proceeds from non-controlling
 interests                                  7         -         7         -
Repurchase of common stock                (43)      (90)     (450)     (392)
Excess tax benefits from stock-based
 compensation                               8        12        34        60
Shares repurchased for tax
 withholdings on vesting of
 restricted stock                         (27)      (17)     (119)      (84)
                                     --------  --------  --------  --------
Net cash provided by (used in)
 financing activities                       4       (25)      656      (231)
                                     --------  --------  --------  --------
Net increase (decrease) in cash and
 cash equivalents                         239       423       (12)      654
Cash and cash equivalents at
 beginning of the period                2,054     1,840     2,305     1,609
                                     --------  --------  --------  --------
Cash and cash equivalents at end of
 the period                          $  2,293  $  2,263  $  2,293  $  2,263
                                     ========  ========  ========  ========




                                VMware, Inc.

                       SUPPLEMENTAL REVENUES SCHEDULE
             (INCLUDES RECONCILIATION OF GAAP TO NON-GAAP DATA)
                                (in millions)
                                 (unaudited)


                   For the Three Months
                          Ended               For the Three Months Ended
                 -----------------------  ---------------------------------
                September  June    March  December September  June    March
                   30,      30,     31,     31,       30,      30,     31,
                   2014    2014    2014     2013     2013     2013    2013
                 -------  ------  ------  -------  --------  ------  ------
Revenues as
 reported (1):
  License        $   639  $  614  $  561  $   687  $    564  $  531  $  488
  Software
   maintenance       779     737     701      699       644     614     605
  Professional
   services           97     106      98       97        81      98      98
                 -------  ------  ------  -------  --------  ------  ------
Total revenues   $ 1,515  $1,457  $1,360  $ 1,483  $  1,289  $1,243  $1,191
                 =======  ======  ======  =======  ========  ======  ======

Change (%) over
 prior year (4)
  License           13.4%   15.8%   14.8%    15.1%     14.8%    2.6%    1.3%
  Software
   maintenance      21.0%   20.0%   15.8%    18.3%     16.9%   18.3%   23.0%
  Professional
   services         18.6%    7.5%    0.4%    -8.4%    -11.4%   13.4%   20.8%
                 -------  ------  ------  -------  --------  ------  ------
Total revenues      17.5%   17.2%   14.2%    14.7%     13.7%   10.7%   12.9%
                 =======  ======  ======  =======  ========  ======  ======

Revenues as
 reported,
 excluding
 Pivotal (2)
  License        $   639  $  614  $  561  $   687  $    564  $  531  $  485
  Software
   maintenance       779     737     701      699       644     614     601
  Professional
   services           97     106      98       97        81      98      84
                 -------  ------  ------  -------  --------  ------  ------
Total revenues   $ 1,515  $1,457  $1,360  $ 1,483  $  1,289  $1,243  $1,170
                 =======  ======  ======  =======  ========  ======  ======

Change (%) over
 prior year (4)
  License           13.4%   15.8%   15.7%    16.6%     16.0%    4.4%    1.5%
  Software
   maintenance      21.0%   20.0%   16.6%    19.2%     17.8%   19.3%   23.0%
  Professional
   services         18.6%    7.5%   17.4%    24.5%     14.0%   45.1%   19.8%
                 -------  ------  ------  -------  --------  ------  ------
Total revenues      17.5%   17.2%   16.3%    18.3%     16.8%   14.0%   12.8%
                 =======  ======  ======  =======  ========  ======  ======

Revenues as
 reported,
 excluding
 Pivotal and all
 dispositions
 (3)
  License        $   639  $  614  $  561  $   687  $    562  $  526  $  476
  Software
   maintenance       779     737     701      699       642     611     590
  Professional
   services           97     106      98       97        81      98      83
                 -------  ------  ------  -------  --------  ------  ------
Total revenues   $ 1,515  $1,457  $1,360  $ 1,483  $  1,285  $1,235  $1,149
                 =======  ======  ======  =======  ========  ======  ======

Change (%) over
 prior year (4)
  License           13.7%   16.7%   17.8%    18.2%     17.3%    5.3%    1.1%
  Software
   maintenance      21.5%   20.7%   18.9%    21.8%     20.0%   21.3%   23.4%
  Professional
   services         18.9%    8.0%   18.2%    24.8%     15.4%   45.6%   19.9%
                 -------  ------  ------  -------  --------  ------  ------
Total revenues      17.9%   18.0%   18.4%    20.3%     18.5%   15.4%   12.9%
                 =======  ======  ======  =======  ========  ======  ======

Reconciliation
 of "revenues as
 reported"
 to"revenues as
 reported,
 excluding
 Pivotaland all
 dispositions":

Revenues as
 reported,
 excluding
 Pivotal and all
 dispositions
 (3)             $ 1,515  $1,457  $1,360  $ 1,483  $  1,285  $1,235  $1,149
  Pivotal              -       -       -        -         -       -      22
  All
   dispositions        -       -       -        -         4       8      20
                 -------  ------  ------  -------  --------  ------  ------
Revenues as
 reported (1)    $ 1,515  $1,457  $1,360  $ 1,483  $  1,289  $1,243  $1,191
                 =======  ======  ======  =======  ========  ======  ======


(1) Represents revenues reported each quarter.

(2) Represents revenues reported each quarter less the revenues attributable
to products and services contributed by VMware to Pivotal Software, Inc.
("Pivotal") on April 1, 2013. All quarters have been adjusted to exclude the
related revenues.

(3) Represents revenues reported each quarter less a) the revenues
attributable to products and services contributed by VMware to Pivotal on
April 1, 2013 and b) the revenues attributable to all lines of businesses
which were disposed of in 2013, including Zimbra which was disposed of in
July 2013. All quarters have been adjusted to exclude the related revenues.

(4) Changes over prior periods are calculated based upon the respective
underlying, non-rounded data.




                                VMware, Inc.

                   SUPPLEMENTAL UNEARNED REVENUES SCHEDULE
             (INCLUDES RECONCILIATION OF GAAP TO NON-GAAP DATA)
                                (in millions)
                                 (unaudited)


                 September  June    March December September  June    March
                    30,      30,     31,    31,       30,      30,     31,
                    2014    2014    2014    2013     2013     2013    2013
                  -------  ------  ------  ------  --------  ------  ------
Unearned revenues
 as reported (1)
  License         $   428  $  476  $  459  $  465  $    415  $  427  $  446
  Software
   maintenance      3,558   3,541   3,378   3,304     2,937   2,903   2,797
  Professional
   services           389     372     335     323       284     266     247
                  -------  ------  ------  ------  --------  ------  ------
Total unearned
 revenues         $ 4,375  $4,389  $4,172  $4,092  $  3,636  $3,596  $3,490
                  =======  ======  ======  ======  ========  ======  ======

Change (%) over
 prior year (3)
  License             3.3%   11.5%    2.8%    0.5%     13.3%   13.7%   19.6%
  Software
   maintenance       21.2%   22.0%   20.8%   19.9%     21.6%   23.2%   24.5%
  Professional
   services          36.6%   39.7%   35.6%   33.1%     34.3%   26.8%   30.6%
                  -------  ------  ------  ------  --------  ------  ------
Total unearned
 revenues            20.3%   22.0%   19.6%   18.3%     21.5%   22.2%   24.3%
                  =======  ======  ======  ======  ========  ======  ======

Unearned revenues
 as reported,
 excluding
 Pivotal and all
 dispositions (2)
  License         $   428  $  476  $  459  $  465  $    414  $  427  $  407
  Software
   maintenance      3,558   3,541   3,378   3,304     2,933   2,903   2,736
  Professional
   services           389     372     335     323       285     266     246
                  -------  ------  ------  ------  --------  ------  ------
Total unearned
 revenues         $ 4,375  $4,389  $4,172  $4,092  $  3,632  $3,596  $3,389
                  =======  ======  ======  ======  ========  ======  ======

Change (%) over
 prior year (3)
  License             3.5%   11.5%   12.8%   12.3%     26.4%   27.1%   15.7%
  Software
   maintenance       21.3%   22.0%   23.5%   23.7%     25.0%   26.8%   25.0%
  Professional
   services          36.6%   39.7%   36.5%   34.4%     35.7%   28.7%   31.7%
                  -------  ------  ------  ------  --------  ------  ------
Total unearned
 revenues            20.5%   22.0%   23.1%   23.0%     26.0%   27.0%   24.3%
                  =======  ======  ======  ======  ========  ======  ======

Reconciliation of
 "unearned
 revenues as
 reported"
 to"unearned
 revenues as
 reported,
 excluding
 Pivotaland all
 dispositions":

Unearned revenues
 as reported,
 excluding
 Pivotal and all
 dispositions (2) $ 4,375  $4,389  $4,172  $4,092  $  3,632  $3,596  $3,389
  Pivotal and all
   dispositions         -       -       -       -         4       -     101
                  -------  ------  ------  ------  --------  ------  ------
Unearned revenues
 as reported (1)  $ 4,375  $4,389  $4,172  $4,092  $  3,636  $3,596  $3,490
                  =======  ======  ======  ======  ========  ======  ======


(1) Represents unearned revenues reported each quarter.

(2) Represents unearned revenues reported each quarter less a) the unearned
revenues attributable to products and services contributed by VMware to
Pivotal on April 1, 2013 and b) the unearned revenues attributable to all
lines of businesses which were disposed of in 2013, including Zimbra which
was disposed of in July 2013. All quarters have been adjusted to exclude the
related unearned revenues.

(3) Changes over prior periods are calculated based upon the respective
underlying, non-rounded data.




                                VMware, Inc.

                   RECONCILIATION OF GAAP TO NON-GAAP DATA
                For the Three Months Ended September 30, 2014
  (amounts in millions, except per share amounts, and shares in thousands)
                                 (unaudited)


                                                  Employer
                                               Payroll Taxes
                                                on Employee
                                 Stock-Based       Stock        Intangible
                      GAAP       Compensation   Transactions   Amortization
                 -------------  -------------  -------------  -------------

Operating
 expenses:
  Cost of
   license
   revenues      $          46             (1)             -            (28)
  Cost of
   services
   revenues      $         196            (11)             -              -
  Research and
   development   $         327            (61)            (1)            (2)
  Sales and
   marketing     $         529            (43)            (2)            (5)
  General and
  administrative $         169            (17)             -             (1)
  Realignment
   charges       $           6              -              -              -

Operating income $         242            133              3             36
Operating margin
 (2)                      16.0%           8.8%           0.2%           2.4%

Income before
 income taxes    $         244            133              3             36

Income tax
 provision       $          50              -              -              -
Tax rate (2)              20.4%

Net income       $         194            133              3             36

Net income per
 weighted-
 average share,
 basic for Class
 A and Class B
 (2) (3)         $        0.45  $        0.31  $        0.01  $        0.08

Net income per
 weighted-
 average share,
 diluted for
 Class A and
 Class B (2) (4)
                 $        0.45  $        0.31  $        0.01  $        0.08


table continued below


                                 Acquisition
                                  and Other         Tax         Non-GAAP,
                  Realignment      Related       Adjustment    as adjusted
                    Charges         Items           (1)            (2)
                 -------------  -------------  -------------  -------------

Operating
 expenses:
  Cost of
   license
   revenues                  -              -              -  $          18
  Cost of
   services
   revenues                  -              -              -  $         185
  Research and
   development               -              -              -  $         264
  Sales and
   marketing                 -              -              -  $         478
  General and
   administrative            -            (41)             -  $         110
  Realignment
   charges                  (6)             -              -  $           -

Operating income             6             41              -  $         460
Operating margin
 (2)                       0.4%           2.7%             -           30.4%

Income before
 income taxes                6             41              -  $         462

Income tax
 provision                   -              -             36  $          85
Tax rate (2)                                                           18.5%

Net income                   6             41            (36) $         377

Net income per
 weighted-
 average share,
 basic for Class
 A and Class B
 (2) (3)         $        0.01  $        0.10  $       (0.08) $        0.88

Net income per
 weighted-
 average share,
 diluted for
 Class A and
 Class B (2) (4)
                 $        0.01  $        0.10  $       (0.08) $        0.87


(1) Non-GAAP financial information for the quarter is adjusted for a tax
rate equal to our annual estimated tax rate on non-GAAP income. This rate is
based on our estimated annual GAAP income tax rate forecast, adjusted to
account for items excluded from GAAP income in calculating the non-GAAP
financial measures presented above. Our estimated tax rate on non-GAAP
income is determined annually and may be adjusted during the year to take
into account events or trends that we believe materially impact the
estimated annual rate including, but not limited to, significant changes
resulting from tax legislation, material changes in the geographic mix of
revenues and expenses and other significant events. Due to the differences
in the tax treatment of items excluded from non-GAAP earnings, as well as
the methodology applied to our estimated annual tax rates as described
above, our estimated tax rate on non-GAAP income may differ from our GAAP
tax rate and from our actual tax liabilities.

(2) Totals may not sum, due to rounding. Operating margin, tax rate and net
income per weighted average share information are calculated based upon the
respective underlying, non-rounded data.

(3) Calculated based upon 430,463 basic weighted-average shares for Class A
and Class B.

(4) Calculated based upon 434,118 diluted weighted-average shares for Class
A and Class B.




                                VMware, Inc.

                   RECONCILIATION OF GAAP TO NON-GAAP DATA
                For the Three Months Ended September 30, 2013
  (amounts in millions, except per share amounts, and shares in thousands)
                                 (unaudited)


                                       Employer
                                        Payroll
                                         Taxes
                                      on Employee
                         Stock-Based     Stock     Intangible   Realignment
                GAAP    Compensation Transactions Amortization    Charges
            ----------- ------------ ------------ ------------  -----------

Operating
 expenses:
  Cost of
   license
   revenues $        51           (1)           -          (22)           -
  Cost of
   services
   revenues $       132           (7)           -            -            -
  Research
   and
development $       266          (52)          (1)          (1)           -
  Sales and
 marketing  $       449          (37)          (1)          (1)           -
  General
   and
 admini-
 strative   $       103          (16)           -            -            -
Realignment
   charges  $         1            -            -            -           (1)

Operating
 income     $       287          113            2           24            1
Operating
 margin            22.4%         8.7%         0.2%         1.9%           -

Other
 income
 (expense),
 net        $        15            -            -            -            -

Income
 before
 income
 taxes      $       308          113            2           24            1

Income tax
 provision  $        47
Tax rate           15.3%

Net income  $       261          113            2           24            1

Net income
 per
 weighted-
 average
 share,
 basic for
 Class A
 and Class
 B (3)      $      0.61  $      0.26  $      0.01  $      0.06  $         -

Net income
 per
 weighted-
 average
 share,
 diluted
 for Class
 A and
 Class B
 (4)        $      0.60  $      0.26  $      0.01  $      0.06  $         -


table continued below
                                        Gain on
                                      Disposition
            Acquisition  Capitalized   of Certain
             and Other     Software     Lines of       Tax
              Related    Development   Business &   Adjustment   Non-GAAP,
               Items      Costs (1)    Other, Net      (2)      as adjusted
            -----------  -----------  -----------  -----------  -----------

Operating
 expenses:
  Cost of
   license
   revenues           -           (8)           -            -  $        20
  Cost of
   services
   revenues           -            -            -            -  $       125
  Research
   and
   development        -            -            -            -  $       212
  Sales and
   marketing          -            -            -            -  $       410
  General
   and
   administrative    (1)           -            -            -  $        86
  Realignment
   charges            -            -            -            -  $         -

Operating
 income               1            8            -            -  $       436
Operating
 margin             0.1%         0.6%           -            -         33.9%

Other
 income
 (expense),
 net                  -            -          (12)           -  $         3

Income
 before
 income
 taxes                1            8          (12)           -  $       445

Income tax
 provision                                                  35  $        82
Tax rate                                                               18.5%

Net income            1            8          (12)         (35) $       363

Net income
 per
 weighted-
 average
 share,
 basic for
 Class A
 and Class
 B (3)      $         -  $      0.02  $     (0.03) $     (0.08) $      0.85

Net income
 per
 weighted-
 average
 share,
 diluted
 for Class
 A and
 Class B
 (4)        $         -  $      0.02  $     (0.03) $     (0.08) $      0.84


(1) For the third quarter of 2013, no costs were capitalized for the
development of software products. Amortization expense from previously
capitalized amounts was $8.

(2) Non-GAAP financial information for the quarter is adjusted for a tax
rate equal to our annual estimated tax rate on non-GAAP income. This rate is
based on our estimated annual GAAP income tax rate forecast, adjusted to
account for items excluded from GAAP income in calculating the non-GAAP
financial measures presented above. Our estimated tax rate on non-GAAP
income is determined annually and may be adjusted during the year to take
into account events or trends that we believe materially impact the
estimated annual rate including, but not limited to, significant changes
resulting from tax legislation, material changes in the geographic mix of
revenues and expenses and other significant events. Due to the differences
in the tax treatment of items excluded from non-GAAP earnings, as well as
the methodology applied to our estimated annual tax rates as described
above, our estimated tax rate on non-GAAP income may differ from our GAAP
tax rate and from our actual tax liabilities.

(3) Calculated based upon 429,709 basic weighted-average shares for Class A
and Class B.

(4) Calculated based upon 433,182 diluted weighted-average shares for Class
A and Class B.




                                VMware, Inc.

                   RECONCILIATION OF GAAP TO NON-GAAP DATA
                For the Nine Months Ended September 30, 2014
  (amounts in millions, except per share amounts, and shares in thousands)
                                 (unaudited)


                                        Employer
                                         Payroll
                                          Taxes
                                       on Employee
                          Stock-Based     Stock     Intangible
                GAAP     Compensation Transactions Amortization
            -----------  ------------ ------------ ------------

Operating
 expenses:
  Cost of
   license
   revenues $       143            (2)           -          (79)
  Cost of
   services
   revenues $       519           (31)          (1)          (1)
  Research
   and
development $       936          (187)          (3)          (5)
  Sales and
  marketing $     1,550          (128)          (3)         (14)
  General
   and
   administ-
   rative   $       498           (51)          (1)          (1)
Realignment
   charges  $         4             -            -            -

Operating
 income     $       683           399            8          100
Operating
 margin (2)        15.8%          9.2%         0.2%         2.3%

Other
 income
 (expense),
 net        $        (2)            -            -            -

Income
 before
 income
 taxes      $       691           399            8          100

Income tax
 provision  $       131             -            -            -
Tax rate
 (2)               18.9%

Net income  $       560           399            8          100


Net income
 per
 weighted-
 average
 share,
 basic for
 Class A
 and Class
 B (2) (3)  $      1.30  $       0.93  $      0.02  $      0.23


Net income
 per
 weighted-
 average
 share,
 diluted
 for Class
 A and
 Class B
 (2) (4)    $      1.29  $       0.92  $      0.02  $      0.23


table continued below

                         Acquisition    Certain
                          and Other    Litigation      Tax       Non-GAAP,
            Realignment    Related     and Other    Adjustment  as adjusted
              Charges       Items    Contingencies     (1)          (2)
           ------------  ----------- ------------- -----------  -----------

Operating
 expenses:
  Cost of
   license
   revenues           -            -            -            -  $        61
  Cost of
   services
   revenues           -            -            -            -  $       488
  Research
   and
   development        -            -            -            -  $       742
  Sales and
   marketing          -            -            -            -  $     1,402
  General
   and
   administ-
   rative             -         (107)         (11)           -  $       328
  Realignment
   charges           (4)           -            -            -  $         -

Operating
 income               4          107           11            -  $     1,312
Operating
 margin (2)         0.1%         2.5%         0.2%           -         30.3%

Other
 income
 (expense),
 net                  -            1            -            -  $        (1)

Income
 before
 income
 taxes                4          108           11            -  $     1,321

Income tax
 provision            -            -            -          114  $       244
Tax rate
 (2)                                                                   18.5%

Net income            4          108           11         (114) $     1,077


Net income
 per
 weighted-
 average
 share,
 basic for
 Class A
 and Class
 B (2) (3)  $      0.01  $      0.25  $      0.02  $     (0.26) $      2.50


Net income
 per
 weighted-
 average
 share,
 diluted
 for Class
 A and
 Class B
 (2) (4)    $      0.01  $      0.25  $      0.02  $     (0.26) $      2.48


(1) Non-GAAP financial information for the quarter is adjusted for a tax
rate equal to our annual estimated tax rate on non-GAAP income. This rate is
based on our estimated annual GAAP income tax rate forecast, adjusted to
account for items excluded from GAAP income in calculating the non-GAAP
financial measures presented above. Our estimated tax rate on non-GAAP
income is determined annually and may be adjusted during the year to take
into account events or trends that we believe materially impact the
estimated annual rate including, but not limited to, significant changes
resulting from tax legislation, material changes in the geographic mix of
revenues and expenses and other significant events. Due to the differences
in the tax treatment of items excluded from non-GAAP earnings, as well as
the methodology applied to our estimated annual tax rates as described
above, our estimated tax rate on non-GAAP income may differ from our GAAP
tax rate and from our actual tax liabilities.

(2) Totals may not sum, due to rounding. Operating margin, tax rate and net
income per weighted average share information are calculated based upon the
respective underlying, non-rounded data.

(3) Calculated based upon 430,408 basic weighted-average shares for Class A
and Class B.

(4) Calculated based upon 434,656 diluted weighted-average shares for Class
A and Class B.




                                VMware, Inc.

                   RECONCILIATION OF GAAP TO NON-GAAP DATA
                For the Nine Months Ended September 30, 2013
  (amounts in millions, except per share amounts, and shares in thousands)
                                 (unaudited)


                                       Employer
                                        Payroll
                                         Taxes
                                      on Employee
                         Stock-Based     Stock     Intangible   Realignment
                GAAP    Compensation Transactions Amortization    Charges
            ----------- ------------ ------------ ------------  -----------

Operating
 expenses:
 Cost of
  license
  revenues  $       163           (2)           -          (67)           -
 Cost of
  services
  revenues  $       375          (21)          (2)          (2)           -
 Research
  and
development $       797         (165)          (3)          (2)           -
 Sales and
  marketing $     1,308         (106)          (3)          (6)           -
 General
  and
  administr-
  ative     $       298          (42)          (2)           -            -
Realignment
 charges    $        64            -            -            -          (64)

Operating
 income     $       719          336           10           77           64
Operating
 margin            19.3%         9.0%         0.2%         2.1%         1.7%

Other
 income
 (expense),
 net        $        29            -            -            -            -

Income
 before
 income
 taxes      $       766          336           10           77           64

Income tax
 provision  $        87
Tax rate           11.4%

Net income  $       679          336           10           77           64

Net income
 per
 weighted-
 average
 share,
 basic for
 Class A
 and Class
 B (3)      $      1.58  $      0.78  $      0.02  $      0.18  $      0.15

Net income
 per
 weighted-
 average
 share,
 diluted
 for Class
 A and
 Class B
 (4)        $      1.57  $      0.78  $      0.02  $      0.18  $      0.15


table continued below
                                        Gain on
                                      Disposition
            Acquisition  Capitalized   of Certain
             and Other     Software     Lines of       Tax
              Related    Development   Business &   Adjustment   Non-GAAP,
               Items      Costs (1)    Other, Net      (2)      as adjusted
            -----------  -----------  -----------  -----------  -----------

Operating
 expenses:
 Cost of
  license
  revenues            -          (34)           -            -  $        60
 Cost of
  services
  revenues            -            -            -            -  $       350
 Research
  and
  development         -            -            -            -  $       627
 Sales and
  marketing           -            -            -            -  $     1,193
 General
  and
  administr-
  ative              (3)           -            -            -  $       251
 Realignment
  charges             -            -            -            -  $         -

Operating
 income               3           34            -            -  $     1,243
Operating
 margin             0.1%         0.9%           -            -         33.3%

Other
 income
 (expense),
 net                  -            -          (31)           -  $        (2)

Income
 before
 income
 taxes                3           34          (31)           -  $     1,259

Income tax
 provision                                                 146  $       233
Tax rate                                                               18.5%

Net income            3           34          (31)        (146) $     1,026

Net income
 per
 weighted-
 average
 share,
 basic for
 Class A
 and Class
 B (3)      $      0.01  $      0.08  $     (0.07) $     (0.34) $      2.39

Net income
 per
 weighted-
 average
 share,
 diluted
 for Class
 A and
 Class B
 (4)        $         -  $      0.08  $     (0.07) $     (0.34) $      2.37


(1) For the first nine months of 2013, no costs were capitalized for the
development of software products. Amortization expense from previously
capitalized amounts was $34.

(2) Non-GAAP financial information for the quarter is adjusted for a tax
rate equal to our annual estimated tax rate on non-GAAP income. This rate is
based on our estimated annual GAAP income tax rate forecast, adjusted to
account for items excluded from GAAP income in calculating the non-GAAP
financial measures presented above. Our estimated tax rate on non-GAAP
income is determined annually and may be adjusted during the year to take
into account events or trends that we believe materially impact the
estimated annual rate including, but not limited to, significant changes
resulting from tax legislation, material changes in the geographic mix of
revenues and expenses and other significant events. Due to the differences
in the tax treatment of items excluded from non-GAAP earnings, as well as
the methodology applied to our estimated annual tax rates as described
above, our estimated tax rate on non-GAAP income may differ from our GAAP
tax rate and from our actual tax liabilities.

(3) Calculated based upon 428,690 basic weighted-average shares for Class A
and Class B.

(4) Calculated based upon 432,916 diluted weighted-average shares for Class
A and Class B.




                                VMware, Inc.

                              REVENUES BY TYPE
                               (in millions)
                                (unaudited)


                           For the Three Months       For the Nine Months
                                   Ended                     Ended
                               September 30,             September 30,
                         ------------------------  ------------------------
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------

Revenues:
  License                $       639  $       564  $     1,814  $     1,583
  Services:
    Software maintenance         779          644        2,217        1,864
    Professional
     services                     97           81          302          277
                         -----------  -----------  -----------  -----------
  Total services                 876          725        2,519        2,141
                         -----------  -----------  -----------  -----------
Total revenues           $     1,515  $     1,289  $     4,333  $     3,724
                         ===========  ===========  ===========  ===========


Percentage of revenues
 (1):
  License                       42.2%        43.7%        41.9%        42.5%
  Services:
    Software maintenance        51.4%        49.9%        51.2%        50.0%
    Professional
     services                    6.4%         6.4%         6.9%         7.5%
                         -----------  -----------  -----------  -----------
  Total services                57.8%        56.3%        58.1%        57.5%
                         -----------  -----------  -----------  -----------
Total revenues                 100.0%       100.0%       100.0%       100.0%
                         ===========  ===========  ===========  ===========


(1) Percentage of revenues is calculated based upon the respective
 underlying, non-rounded data.




                                VMware, Inc.

                           REVENUES BY GEOGRAPHY
                               (in millions)
                                (unaudited)


                           For the Three Months       For the Nine Months
                                   Ended                     Ended
                               September 30,             September 30,
                         ------------------------  ------------------------
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------

Revenues:
  United States          $       780  $       614  $     2,112  $     1,773
  International                  735          675        2,221        1,951
                         -----------  -----------  -----------  -----------
Total revenues           $     1,515  $     1,289  $     4,333  $     3,724
                         ===========  ===========  ===========  ===========


Percentage of revenues
 (1):
  United States                 51.5%        46.9%        48.8%        47.6%
  International                 48.5%        53.1%        51.2%        52.4%
                         -----------  -----------  -----------  -----------
Total revenues                 100.0%       100.0%       100.0%       100.0%
                         ===========  ===========  ===========  ===========


(1) Percentage of revenues is calculated based upon the respective
 underlying, non-rounded data.




                                VMware, Inc.

        RECONCILIATION OF GAAP CASH FLOWS FROM OPERATING ACTIVITIES
                             TO FREE CASH FLOWS
                       (A NON-GAAP FINANCIAL MEASURE)
                               (in millions)
                                (unaudited)


                           For the Three Months       For the Nine Months
                                   Ended                     Ended
                               September 30,             September 30,
                         ------------------------  ------------------------
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------

GAAP cash flows from
 operating activities    $       606  $       637  $     1,765  $     1,848
Capital expenditures            (100)         (94)        (254)        (247)
                         -----------  -----------  -----------  -----------
Free cash flows          $       506  $       543  $     1,511  $     1,601
                         ===========  ===========  ===========  ===========


About Non-GAAP Financial Measures To provide investors and others with additional information regarding VMware's results, VMware has disclosed in this press release the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP other income (expense), net, non-GAAP net income, non-GAAP income per diluted share, and free cash flows. 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 flows, 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 and other-related items, certain litigation and other contingencies, the net effect of the amortization and capitalization of software development costs and gain on disposition of certain lines of business and other net, each as discussed below. Free cash flows differ from GAAP cash flows from operating activities in its treatment of capital expenditures.

VMware has also presented in this press release quarterly and annual historical data for revenue and unearned revenue, excluding revenue generated each period by the products and services contributed to Pivotal Software, Inc. on April 1, 2013 and the products and services associated with the divestures consummated by VMware in 2013. VMware management believes that these measures are useful to investors because they allow investors to make meaningful comparisons of VMware revenues and unearned revenues across periods.

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 expenses 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 flows 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:

  • Stock-based compensation. Stock-based compensation is generally fixed at the time the stock-based instrument is granted and amortized over a period of several years. Although stock-based compensation is an important aspect of the compensation of our employees and executives, the expense for the fair value of the stock-based instruments VMware utilizes may bear little resemblance to the actual value realized upon the vesting or future exercise of the related stock-based awards. Furthermore, unlike cash compensation, the value of stock options is determined using a complex formula that incorporates factors, such as market volatility, that are beyond VMware's control. Additionally, in order to establish the amount of expense to recognize for performance-based stock awards, which are also an element of ongoing stock-based compensation, VMware is required to apply judgment to estimate the probability of the extent to which performance objectives will be achieved. Management believes it is useful to exclude stock-based compensation in order to better understand the long-term performance of VMware's core business and to facilitate comparison of its results to those of peer companies.
  • Employer payroll tax on employee stock transactions. The amount of employer payroll taxes on stock-based compensation is dependent on VMware's stock price and other factors that are beyond our control and do not correlate to the operation of the business.
  • Amortization of acquired intangible assets. A portion of the purchase price of VMware's acquisitions is generally allocated to intangible assets, such as intellectual property, and is subject to amortization. However, VMware does not acquire businesses on a predictable cycle. Additionally, the amount of an acquisition's purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition. Therefore, VMware believes that the presentation of non-GAAP financial measures that adjust for the amortization of intangible assets provides investors and others with a consistent basis for comparison across accounting periods.
  • Realignment charges: Realignment charges include workforce reductions, asset impairments and losses on asset disposals, and costs to exit facilities. VMware management believes it is useful to exclude these items, when significant, as they are not reflective of VMware's ongoing business and operating results.
  • Acquisition and other-related items. Acquisition and other-related items include direct costs of acquisitions and dispositions, such as transaction and advisory fees. Also included are accruals for the portion of merger consideration payable in installments that VMware has committed to make to designated founders and key executives of AirWatch, subject to employment conditions and indemnification claims, if any. Such installment payments may be paid in cash or VMware stock, at the option of VMware. Additionally, charges recognized for non-recoverable strategic investments or gains recognized on the disposition of strategic investments during 2014 are included as other-related items. As VMware does not acquire or dispose of businesses on a predictable cycle and the terms of each transaction can vary significantly and are unique to each transaction, VMware believes it is useful to exclude these items when looking for a consistent basis for comparison across accounting periods.
  • Certain litigation and other contingencies. VMware, from time to time may incur charges or benefits that are outside of the ordinary course of our business related to litigation and other contingencies. VMware believes it is useful to exclude such charges or benefits because we do not consider such amounts to be part of the ongoing operation of our business and because of the singular nature of the claims underlying the matter.
  • Capitalized software development costs. Capitalized software development costs encompass capitalization of development costs and the subsequent amortization of the capitalized costs over the useful life of the product. Amortization and capitalization of software development costs can vary significantly depending upon the timing of products reaching technological feasibility and being made generally available. VMware did not capitalize software development costs related to product offerings in either fiscal year 2014 or fiscal year 2013 given its current go-to-market strategy. In future periods, VMware does not expect amortization expense as previously capitalized software development costs have become fully amortized.
  • Gain on disposition of certain lines of business and other, net. In 2013, VMware recognized a gain as a result of exiting certain lines of business under its business realignment plan, which was partially offset by a charge recognized for a non-recoverable strategic investment. These transactions resulted in a net gain of $31 million. To the extent that significant gains or losses are realized on such dispositions and strategic investments, they do not occur on a predictable cycle, and such gains and losses are not reflective of VMware's ongoing business and operating results.
  • Tax adjustment. Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on VMware's estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating VMware's non-GAAP income. VMware's estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that VMware management believes materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenues and expenses and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to VMware's estimated annual tax rates as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from VMware's actual tax liabilities.

Additionally, VMware management believes that the non-GAAP financial measure free cash flows is meaningful to investors because management reviews cash flows 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.

Contacts:

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

Joan Stone
VMware Global Communications
joanstone@vmware.com
650-427-4436

Source: VMware, Inc.


Multimedia Release -- RLHC Launches New Upscale Lifestyle Brand, Hotel RL Oct 21, 2014 04:02PM

SPOKANE, Wash., Oct. 21, 2014 (GLOBE NEWSWIRE) -- RLHC (NYSE: RLH), an operator and franchisor of midscale and upscale hotels, today announced the launch of a new upscale hotel conversion brand targeted for the top 80 U.S. urban markets. Hotel RL is a full-service, lifestyle brand inspired by the spirit of the Pacific Northwest and designed for consumers with a millennial mindset.

Hotel RL - Bed View
Hotel RL - Coffee Shop
Hotel RL - Stepped Seating and Stage
Hotel RL - Living Stage

A multimedia version of this release that includes photos and a video clip is available at http://www.globenewswire.com/mpr/rlh/index.html?d=10103698

"With the recent uptick in hotel construction in the upscale and upper midscale segments, as well as traditional franchise contract termination options, this is an opportunity for hotel owners to affiliate with a new brand that isn't already commoditized in every major market," said RLHC President and CEO Greg Mount. "By tapping into the millennial mindset, Hotel RL offers a fresh approach to hospitality that will resonate with the most influential market set since the baby boomers."

"Hotel RL is a place to experience hospitality through a radically old idea of a hotel as a town square, where visitors and locals meet to collaborate," said RLHC President and CEO Greg Mount. "Hotel RL is a series of spaces, experiences, and amenities especially suited to travelers seeking more than just a hotel room.  This is a chance for both business and leisure travelers to immerse themselves into local culture, while maintaining their connection to the world," he added.

"Hotel RL stresses authenticity, environment and community, and reflects a longstanding commitment by Red Lion to hospitality, starting with a simple hello," Mount said. "The focal-point of our open pavilion-style lobby is The Steps, a new gathering and seating concept where guests can enjoy an espresso and complimentary Wi-Fi in the mornings or a signature cocktail in the evenings."

In addition to The Steps, other signature elements of the Hotel RL brand include distinctive coffee service in the lobbies, centered around the notion of enticing guests out of their rooms and into a Pacific Northwest coffee house setting.

"Through design and guest experiences, Hotel RL brings the Pacific Northwest ethos of exploration and discovery to life in the three-star hotel segment," Mount continued.  "The hotel's turnkey design is well suited for economical conversion opportunities that are focused not on a brand whim but what truly is important to the traveler. Hotel RL will be the unique differentiator in markets that currently are saturated with homogenized hotel rooms. After all, unique experiences are the hallmark of the millennial mindset. As a new brand, Hotel RL has no proximity issues. We believe having the freshness of a new brand in a singular niche will give our franchisees a competitive advantage in attracting and retaining guests."

The U.S. upper midscale and upscale segments consist of approximately 1.5 million hotel rooms, according to Smith Travel Research.  RLHC anticipates announcing the first addition to Hotel RL before the end of the year and plans to open or convert more in 2015. Over the next 18 months, RLHC expects along with hotel owners to invest between $50 million and $100 million in the conversion of properties to the Hotel RL brand. On a selective basis, RLHC will pursue joint venture and equity ownership opportunities. Click Here for a closer look at Hotel RL.

Hotel RL video: http://youtu.be/wl7fOXB6Vt0

About RLHC:

Red Lion Hotels Corporation is a hospitality company primarily engaged in the franchising, ownership and operation of hotels. Established in 1959, the company has more than 50 hotels system wide and also owns and operates an entertainment and event ticket distribution business. For more information, please visit the company's website at www.redlion.com.

Social Media

www.Facebook.com/RedLionHotels  www.Twitter.com/RedLionHotels  www.Instagram.com/RedLionHotels  www.LinkedIn.com/company/red-lion-hotels

The photos are also available at Newscom, www.newscom.com, and via AP PhotoExpress.

CONTACT: Company Contact:
         Pam Scott
         Red Lion Hotels Corporation
         509-777-6393 (d)
         509-570-4610 (c)
         Pam.Scott@redlion.com

         Lauralee Dobbins
         Daly Gray
         703-435-6293
         856-979-8929
         Lauralee@dalygray.com

Source: Red Lion Hotels Corporation


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