• Total consolidated revenues were $358 million, an increase of 90% compared to the year-ago quarter.  
• GAAP net income was $65 million or $0.18 per diluted share compared to $19 million or $0.06 per diluted share in the year-ago quarter.  GAAP operating income was $66 million compared to $28 million in the third quarter of 2006.
• Non-GAAP net income was $85 million or $0.23 per diluted share.  
• Non-GAAP operating income was $91 million, which represents 25% of third-quarter revenues and is an increase of 71% over the year-ago quarter. 

"VMware had a strong quarter by several measures," said Diane Greene, president and chief executive officer of VMware.  "Increased customer-adoption of VMware Infrastructure was a significant driver in growing our revenues 90%.  We completed our IPO.  Our annual VMworld conference drew more than 10,800 attendees, including more than 1,800 people representing our partners. And we introduced four brand new products to the market, including our next-generation server-embedded hypervisor VMware ESX Server 3i."

"We believe customer appreciation for the quality and functionality of our products is driving our business," continued Greene.  "Companies large and small are moving to a VMware Infrastructure architecture for their data centers and, in many cases, for their desktops. During the quarter customers continued to standardize on our third-generation VMware Infrastructure suite of virtualization software. We also saw increased adoption of VMware Virtual Desktop Infrastructure (VDI), backed by the VMware Infrastructure architecture, to centrally manage and secure enterprise desktops."

GAAP operating cash flows, on a trailing 12 month basis ending September 30, 2007, were $514 million compared to $230 million for the twelve months that ended September 30, 2006. 

"We had solid growth during our first quarter as a public company," said Mark Peek, chief financial officer of VMware.  "In particular, we were pleased with our ability to grow operating income while continuing to invest in the business, increase our footprint in the market, develop new products, and meet the high expectations of our customers and partners."

VMware plans to host a conference call today to review its third-quarter financial results.  The call is scheduled to begin at 2:00 p.m. PT/ 5:00 p.m. ET and can be accessed via the Web at http://ir.vmware.com. The Internet broadcast will be available live, and a replay will be available following completion of the live broadcast for approximately one year.