In addition, the vWorkspace management platform supports and automates rapid provisioning, deployment and management of virtual desktops and applications on Microsoft Hyper-V, VMware ESX and Parallels Virtuozzo Containers, together with Terminal Services (Remote Desktop Session Host) and blade PCs, all from a single console.

Simon Richards, IGEL Technology's UK general manager, said: "The integration of the Quest vWorkspace client into IGEL's firmware is an important addition for customers looking for an effective desktop virtualization management solution. The joint solution lets organizations provide more flexible access to data and applications, while also improving control over managing and securing IT assets. This development once again underlines IGEL's commitment to offering its customers the most flexible, reliable and cost effective thin clients on the market."

Jon Rolls, Quest Software Desktop Virtualization Group's vice president of product management, said: "IGEL thin client customers will now have the capability to access a desktop virtualization management solution that delivers the flexible and feature-rich user experience they expect. Quest vWorkspace is enterprise-grade and customer-proven with hundreds of thousands of VDI and Terminal Services users. vWorkspace includes Quest's Experience Optimized Protocol, which ensures the users' virtual experience is like that of a physical device, and our platform-independent approach gives IT managers peace of mind that their virtualization investments are future-proofed against changing needs and requirements."

The latest IGEL firmware, including the Quest vWorkspace client, is available immediately in Entry, Standard and Advanced firmware feature packs. Existing IGEL customers will also be able to download the latest version of the firmware from www.igel.com free of charge. There is an additional software licence charge payable to Quest Software for customers wishing to use Quest vWorkspace.

About IGEL Technology

IGEL Technology is the world's third largest client vendor by revenue and is market leader in its home country of Germany (2009 IDC). The company produces one of the industry's widest range of thin clients, based on Linux and Microsoft Windows, giving customers access to almost any form of server-based infrastructure and application including virtual PCs from VMware , Citrix Xen or Microsoft , terminal services, legacy applications via Ericom PowerTerm terminal emulation, web, Java, SAP and VoIP. Form factors include traditional desktops, integrated LCD units, quad screens and PC to thin client conversion cards.

About Quest Software, Inc.

Now more than ever, organizations need to work smart and improve efficiency. Quest Software creates and supports smart systems management products - helping our customers solve everyday IT challenges faster and easier. Visit www.quest.com for more information.

Quest, Quest Software and the Quest logo are trademarks or registered trademarks of Quest Software in the United States and certain other countries. Other trademarks and registered trademarks are property of their respective owners.

CONTACT: Dr. Frank Lampe, IGEL Tel: +49 421 1769 1370 Tel: +49 151 1217 8475 e-mail: lampe@IGEL.com WWW: http://www.igel.com Paul Smith, The Amber Group Tel: +44 (0)7770 828 525 e-mail: Paul@ambergroup.net Quest Software, Inc WWW: http://www.quest.com Quest vWorkspace WWW: http://www.vWorkspace.com

((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to info@m2.com.

Quest's cash and investments at September 30, 2009, totaled $362.0 million, an increase of $31.7 million over the comparable balance at June 30, 2009. Quest generated cash flow from operations of $43.7 million in the third quarter of 2009, an increase of $8.6 million over the comparable period in 2008.

Quest also announced that it has reached an agreement in principle with the class representative to settle the shareholder class action relating to alleged option backdating that was filed in October 2006 in the U.S. District Court for the Central District of California against Quest and certain of its current or former officers and directors for a payment of $29.4 million. The parties are negotiating in good faith a stipulation of settlement which will be subject to court approval once finalized.

"The key theme for the third quarter was operating discipline," said Doug Garn, president and CEO of Quest. "We delivered excellent margin improvement and operating cash flow this quarter. My primary focus is to ensure that Quest is continuing to execute well and that we are building a foundation for sustainable long-term growth."

GAAP Results

Quest Software's net income for the third quarter of 2009 was $2.9 million, or $0.03 per fully diluted share. This compares to net income of $17.3 million, or $0.16 per share on a fully diluted basis, for the third quarter of 2008. Operating margins decreased year-over-year from 14.8% to (1.2)% in the third quarter, resulting in an operating loss of $2.0 million which compares to income of $27.8 million for the corresponding period in 2008. Net income for the first nine months of 2009 was $33.3 million, or $0.35 per fully diluted share, versus net income of $38.9 million, or $0.36 per fully diluted share, for the comparable period in 2008.

Non-GAAP Results

On a non-GAAP basis, net income for the third quarter of 2009 was $31.2 million, or $0.34 per fully diluted share. This compares to non-GAAP net income of $26.8 million, or $0.25 per share on a fully diluted basis, for the third quarter of 2008. The non-GAAP operating margin was 24.3% in the third quarter of 2009, resulting in non-GAAP operating income of $41.6 million, compared to non-GAAP operating margin and operating income of 22.1% and $41.5 million, respectively, for the corresponding period in 2008. For the nine months ended September 30, 2009, non-GAAP net income was $80.8 million, or $0.86 per fully diluted share. This compares to non-GAAP net income of $66.7 million, or $0.63 per fully diluted share, for the nine months ended September 30, 2008. The non-GAAP operating margin was 21.4% in the first nine months of 2009, resulting in non-GAAP operating income of $107.4 million, compared to non-GAAP operating margin of 15.6% and non-GAAP operating income of $83.5 million in the comparable period of 2008.

Non-GAAP results exclude the after-tax effects of amortization of intangible assets acquired with business combinations, share-based compensation expenses, acquisition related costs, expenses and litigation loss provision associated with the pending settlement of the shareholder class action arising from Quest's stock option investigation. A reconciliation of GAAP to non-GAAP financial results is included with this press release.

Quest's management prepares and uses non-GAAP financial measures in the presentation of the Company's results to provide a consistent understanding of its historical operating performance and comparisons with peer companies. Management believes that non-GAAP reporting provides a more meaningful representation of the Company's on-going economic performance and therefore uses non-GAAP reporting internally to evaluate and manage the Company's operations. Management believes excluding charges such as those described above from its GAAP results facilitates investors' understanding of the Company's ongoing business operating results. These non-GAAP financial measures also facilitate comparisons to the operating results of the Company's competitors and provide investors with greater transparency with respect to the supplemental information used by management in its operational and financial decision making.

Third Quarter 2009 Conference Call Information

Quest Software will host a conference call today, Tuesday, November 3, 2009, at 2:00 p.m. Pacific Time, to discuss its results. A simultaneous webcast of the conference call will be available on Quest's website in the Investor Relations section at www.quest.com/investor_relations/. A webcast replay will be available on the same website through November 3, 2010. An audio replay of the conference call will also be available through November 10, 2009 by dialing (888) 203-1112 (from the U.S. or Canada) or 719-457-0820 (outside the U.S. and Canada), using confirmation code: 8652894.

About Quest Software, Inc.

Now more than ever, organizations need to work smart and improve efficiency. Quest Software creates and supports smart systems management products -- helping our customers solve everyday IT challenges faster and easier. Visit www.quest.com for more information.

Quest and Quest Software are registered trademarks of Quest Software, Inc. The Quest Software logo and all other Quest Software product or service names and slogans are registered trademarks or trademarks of Quest Software, Inc. All other trademarks and registered trademarks are property of their respective owners.

Forward-Looking Statements

This release and the matters to be discussed on the conference call may include predictions, estimates and other information that might be considered forward-looking statements, including statements relating to expectations of future revenue and operating margin performance and other operating prospects and statements relating to the settlement of the shareholder class action. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially from those anticipated as a result of various factors, including: risks associated with finalizing and obtaining court approval of a stipulation of settlement of the shareholder class action, the impact of adverse changes in general economic conditions on Quest's relationships with customers, strategic partners and vendors; reductions or delays in information technology spending; variations in demand or the size and timing of customer orders; competitive conditions in Quest's various product areas; rapid technological change; risks associated with the development and market acceptance of new products and product strategies; disruptions caused by acquisitions of companies and/or technologies; fluctuating currency exchange rates and risks associated with international operations; the need to attract and retain qualified employees; and other risks inherent in software businesses. For a discussion of these and other related risks, please refer to Quest's recent SEC filings, including the Annual Report on Form 10-K for the year ended December 31, 2008, which are available on the SEC's website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date thereof. Quest undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date thereof.

QUEST SOFTWARE, INC.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share data)
(Unaudited)
                                                  Three Months Ended            Nine Months Ended
                                                  September 30,                 September 30,
                                                  2009           2008           2009         2008
Revenues:
Licenses                                          $  67,323      $  86,700      $   191,333  $   241,128
Services                                             103,526        100,865         309,371      292,650
Total revenues                                       170,849        187,565         500,704      533,778
Cost of revenues:
Licenses                                             2,197          1,921           5,740        6,110
Services                                             14,607         15,167          42,867       46,571
Amortization of purchased technology                 4,983          5,026           14,924       14,619
Total cost of revenues                               21,787         22,114          63,531       67,300
Gross profit                                         149,062        165,451         437,173      466,478
Operating expenses:
Sales and marketing                                  64,704         76,957          196,732      234,604
Research and development                             34,721         37,169          107,928      114,687
General and administrative                           18,971         21,120          55,170       66,811
Amortization of other purchased intangible assets    3,258          2,418           9,925        7,730
In-process research and development                  -              -               -            955
Litigation loss provision                            29,400         -               29,400       -
Total operating expenses                             151,054        137,664         399,155      424,787
Income (loss) from operations                        (1,992  )      27,787          38,018       41,691
Other income (expense), net                          2,703          (6,526  )       3,338        4,385
Income before income tax provision (benefit)         711            21,261          41,356       46,076
Income tax provision (benefit)                       (2,238  )      3,944           8,019        7,204
Net income                                        $  2,949       $  17,317      $   33,337   $   38,872
Net income per share:
Basic                                             $  0.03        $  0.16        $   0.36     $   0.37
Diluted                                           $  0.03        $  0.16        $   0.35     $   0.36
Weighted average shares:
Basic                                                88,968         105,434         92,540       104,334
Diluted                                              91,846         107,450         94,483       106,697

Reconciliation of Non-GAAP Financial Measures to Comparable U.S. GAAP Measures (Unaudited)

The Company has provided a reconciliation of each non-GAAP financial measure used in this earnings release and related conference call and webcast to the most directly comparable GAAP financial measure. These measures differ from GAAP in that they exclude amortization of intangible assets acquired with business combinations, share-based compensation expenses, acquisition related costs, expenses, including indemnification advances and settlement amounts, associated with litigation arising from Quest's stock option investigation and the estimated tax effect related to each of these items. The Company's basis for these adjustments is described below.

Quest Software's management prepares and uses non-GAAP financial measures in the presentation of the Company's results to provide a consistent understanding of its historical operating performance and comparisons with peer companies. Management believes that non-GAAP reporting provides a more meaningful representation of the Company's on-going economic performance and therefore uses non-GAAP reporting internally to evaluate and manage the Company's operations. Management believes excluding charges such as those described above from its GAAP results facilitates investors' understanding of the Company's ongoing business operating results. These non-GAAP financial measures also facilitate comparisons to the operating results of the Company's competitors and provide investors with greater transparency with respect to the supplemental information used by management in its operational and financial decision making.

Management excludes the expenses described above when evaluating the Company's operating performance and believes that the resulting non-GAAP measures are useful to investors and financial analysts in assessing the Company's operating performance due to the following factors:

-- The Company does not acquire businesses on a predictable cycle. The Company, therefore, believes that the presentation of non-GAAP measures that adjust for the impact of intangible asset amortization that are related to business combinations, provides investors and financial analysts with a consistent basis for comparison across accounting periods and, therefore, is useful to help investors and financial analysts better understand the Company's operating results and underlying operational trends.

-- Amortization costs are fixed at the time of an acquisition, then amortized over a period of several years after the acquisition and generally cannot be changed or influenced by management after the acquisition.

-- Although share-based compensation is an important aspect of the compensation of the Company's employees and executives, share-based compensation expense and its related tax impact are excluded as such charges are generally fixed at the time of grant and amortized over a period of several years and cannot be changed nor influenced by management after the grant.

-- Share-based compensation is not an expense that typically requires or will require cash settlement by the Company.

-- Acquisition related costs include expenses incurred for outside legal fees and costs and other professional fees.

-- Ongoing litigation arising from Quest's stock option investigation includes expenses incurred for outside legal fees and costs, consulting services and other professional fees, indemnification expenses for current and former directors and officers, and settlement amounts. Because these expenses are non-recurring and unique to the stock option investigation, the Company believes they are not indicative of future operating results and that investors benefit from an understanding of Quest's operating results without giving effect to them.

-- The estimated income tax effects on the above items adjust the provision for income taxes to reflect the effect of the non-GAAP adjustments on non-GAAP operating income.

These non-GAAP financial measures are not prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and may differ from the non-GAAP information used by other companies. There are significant limitations associated with the use of non-GAAP financial measures. The additional non-GAAP financial information presented here should be considered in conjunction with, and not as a substitute for or superior to, the financial information presented in accordance with GAAP (such as net income and earnings per share) and should not be considered measures of the Company's liquidity. Furthermore, the Company in the future may exclude amortization related to new business combinations from financial measures that it releases, and the Company expects to continue to incur share-based compensation expenses.

QUEST SOFTWARE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES
(In thousands, except per share data)
(Unaudited)
                                                                   Three Months Ended September 30,      Nine Months Ended September 30,
                                                                   2009               2008               2009               2008
GAAP total cost of revenues                                        $    21,787        $    22,114        $    63,531        $    67,300
Amortization of purchased technology                                    (4,983  )          (5,026  )          (14,924 )          (14,619 )
Share-based compensation expense                                        (185    )          (151    )          (521    )          (688    )
Non-GAAP total cost of revenues                                    $    16,619        $    16,937        $    48,086        $    51,993
GAAP gross profit                                                  $    149,062       $    165,451       $    437,173       $    466,478
Amortization of purchased technology                                    4,983              5,026              14,924             14,619
Share-based compensation expense                                        185                151                521                688
Non-GAAP gross profit                                              $    154,230       $    170,628       $    452,618       $    481,785
GAAP income (loss) from operations                                 $    (1,992  )     $    27,787        $    38,018        $    41,691
Amortization of purchased technology                                    4,983              5,026              14,924             14,619
Amortization of other purchased intangible assets                       3,258              2,418              9,925              7,730
Share-based compensation expense                                        4,034              5,234              11,365             15,222
Acquisition related costs                                               16                 -                  120                -
Professional fees related to our ongoing legal and indemnification      1,893              1,033              3,611              3,235
expense relating to our previous restatement
In-process research and development                                     -                  -                  -                  955
Litigation loss provision                                               29,400             -                  29,400             -
Non-GAAP income from operations                                    $    41,592        $    41,498        $    107,363       $    83,452
GAAP net income                                                    $    2,949         $    17,317        $    33,337        $    38,872
Amortization of purchased technology                                    4,983              5,026              14,924             14,619
Amortization of other purchased intangible assets                       3,258              2,418              9,925              7,730
Share-based compensation expense                                        4,034              5,234              11,365             15,222
Acquisition related costs                                               16                 -                  120                -
Professional fees related to our ongoing legal and indemnification      1,893              1,033              3,611              3,235
expense relating to our previous restatement
In-process research and development                                     -                  -                  -                  955
Litigation loss provision                                               29,400             -                  29,400             -
Tax effect of these adjustments                                         (15,349 )          (4,198  )          (21,860 )          (13,938 )
Non-GAAP net income                                                $    31,184        $    26,830        $    80,822        $    66,695
GAAP net income per basic share                                    $    0.03          $    0.16          $    0.36          $    0.37
Amortization of purchased technology                                    0.05               0.05               0.16               0.14
Amortization of other purchased intangible assets                       0.04               0.02               0.11               0.07
Share-based compensation expense                                        0.05               0.05               0.12               0.15
Acquisition related costs                                               -                  -                  -                  -
Professional fees related to our ongoing legal and indemnification      0.02               0.01               0.04               0.03
expense relating to our previous restatement
In-process research and development                                     -                  -                  -                  0.01
Litigation loss provision                                               0.33               -                  0.32               -
Tax effect of these adjustments                                         (0.17   )          (0.04   )          (0.24   )          (0.13   )
Non-GAAP net income per basic share                                $    0.35          $    0.25          $    0.87          $    0.64
Shares used in basic per share amounts                                  88,968             105,434            92,540             104,334
GAAP net income per fully diluted share                            $    0.03          $    0.16          $    0.35          $    0.36
Amortization of purchased technology                                    0.05               0.05               0.16               0.14
Amortization of other purchased intangible assets                       0.04               0.02               0.11               0.07
Share-based compensation expense                                        0.05               0.05               0.12               0.15
Acquisition related costs                                               -                  -                  -                  -
Professional fees related to our ongoing legal and indemnification   0.02        0.01         0.04        0.03
expense relating to our previous restatement
In-process research and development                                  -           -            -           0.01
Litigation loss provision                                            0.32        -            0.31        -
Tax effect of these adjustments                                      (0.17  )    (0.04   )    (0.23  )    (0.13   )
Non-GAAP net income per fully diluted share                        $ 0.34      $ 0.25       $ 0.86      $ 0.63
Shares used in fully diluted per share amounts                       91,846      107,450      94,483      106,697

QUEST SOFTWARE, INC.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL MEASURES (Continued)
(In thousands, except per share data)
(Unaudited)
                                                                    Three Months Ended September 30, 2009
                                                                    Sales and Marketing  Research and Development  General and Administrative  Amortization of Other Purchased Intangible Assets  Litigation Loss Provision            Total Operating Expenses
GAAP operating expenses                                             $ 64,704             $ 34,721                  $ 18,971                    $ 3,258                                            $ 29,400                             $ 151,054
Amortization of other purchased intangible assets                   -                    -                         -                           (3,258)                                            -                                    (3,258)
Share-based compensation expense                                    (1,047)              (1,473)                   (1,329)                     -                                                  -                                    (3,849)
Acquisition related costs                                           -                    -                         (16)                        -                                                  -                                    (16)
Professional fees related to our ongoing legal and indemnification  -                    -                         (1,893)                     -                                                  -                                    (1,893)
expense relating to our previous restatement
Litigation loss provision                                           -                    -                         -                           -                                                  (29,400)                             (29,400)
Non-GAAP operating expenses                                         $ 63,657             $ 33,248                  $ 15,733                    $ -                                                $ -                                  $ 112,638
                                                                    Three Months Ended September 30, 2008
                                                                    Sales and Marketing  Research and Development  General and Administrative  Amortization of Other Purchased Intangible Assets  In-process Research and Development  Total Operating Expenses
GAAP operating expenses                                             $ 76,957             $ 37,169                  $ 21,120                    $ 2,418                                            $ -                                  $ 137,664
Amortization of other purchased intangible assets                   -                    -                         -                           (2,418)                                            -                                    (2,418)
Share-based compensation expense                                    (1,588)              (1,283)                   (2,212)                     -                                                  -                                    (5,083)
Professional fees related to our ongoing legal and indemnification  -                    -                         (1,033)                     -                                                  -                                    (1,033)
expense relating to our previous restatement
In-process research and development                                 -                    -                         -                           -                                                  -                                    -
Non-GAAP operating expenses                                         $ 75,369             $ 35,886                  $ 17,875                    $ -                                                $ -                                  $ 129,130
                                                                    Nine Months Ended September 30, 2009
                                                                    Sales and Marketing  Research and Development  General and Administrative  Amortization of Other Purchased Intangible Assets  Litigation Loss Provision            Total Operating Expenses
GAAP operating expenses                                             $ 196,732            $ 107,928                 $ 55,170                    $ 9,925                                            $ 29,400                             $ 399,155
Amortization of other purchased intangible assets                   -                    -                         -                           (9,925)                                            -                                    (9,925)
Share-based compensation expense                                    (3,768)              (4,074)                   (3,002)                     -                                                  -                                    (10,844)
Acquisition related costs                                           -                    -                         (120)                       -                                                                                       (120)
Professional fees related to our ongoing legal and indemnification  -                    -                         (3,611)                     -                                                  -                                    (3,611)
expense relating to our previous restatement
Litigation loss provision                                           -                    -                         -                           -                                                  (29,400)                             (29,400)
Non-GAAP operating expenses                                         $ 192,964            $ 103,854                 $ 48,437                    $ -                                                $ -                                  $ 345,255
                                                                    Nine Months Ended September 30, 2008
                                                                    Sales and Marketing  Research and Development  General and Administrative  Amortization of Other Purchased Intangible Assets  In-process Research and Development  Total Operating Expenses
GAAP operating expenses                                             $ 234,604            $ 114,687                 $ 66,811                    $ 7,730                                            $ 955                                $ 424,787
Amortization of other purchased intangible assets                   -                    -                         -                           (7,730)                                            -                                    (7,730)
Share-based compensation expense                                    (5,537)              (4,505)                   (4,492)                     -                                                  -                                    (14,534)
Professional fees related to our ongoing legal and indemnification  -                    -                         (3,235)                     -                                                  -                                    (3,235)
expense relating to our previous restatement
In-process research and development                                 -                    -                         -                           -                                                  (955)                                (955)
Non-GAAP operating expenses                                         $ 229,067            $ 110,182                 $ 59,084                    $ -                                                $ -                                  $ 398,333

QUEST SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
ASSETS
                                            September 30,     December 31,
                                            2009              2008
Current assets:
Cash and cash equivalents                   $      303,465    $      215,895
Restricted cash                                    900               2,425
Short-term investments                             58,549            632
Accounts receivable, net                           124,545           153,892
Prepaid expenses and other current assets          19,116            17,362
Deferred income taxes                              30,776            18,460
Total current assets                               537,351           408,666
Property and equipment, net                        71,587            77,394
Long-term investments                              -                 41,410
Intangible assets, net                             79,918            104,567
Goodwill                                           659,195           655,777
Deferred income taxes                              23,313            28,026
Other assets                                       26,274            29,819
Total assets                                $      1,397,638  $      1,345,659
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable                            $      4,579      $      3,798
Accrued compensation                               40,325            45,079
Other accrued expenses                             27,414            39,760
Litigation loss provision                          29,400            -
Current portion of loans payable                   34,213            -
Current portion of income taxes payable            6,090             167
Current portion of deferred revenue                258,189           272,626
Total current liabilities                          400,210           361,430
Long-term liabilities:
Long-term portion of deferred revenue              76,790            66,086
Long-term portion of income taxes payable          38,697            40,846
Long-term portion of loans payable                 33,428            -
Other long-term liabilities                        7,228             3,545
Total long-term liabilities                        156,143           110,477
Stockholders' equity                               841,285           873,752
Total liabilities and stockholders' equity  $      1,397,638  $      1,345,659

QUEST SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
                                                                  Three Months Ended            Nine Months Ended
                                                                  September 30,                 September 30,
                                                                  2009           2008           2009            2008
Cash flows from operating activities:
Net income                                                        $  2,949       $  17,317      $  33,337       $  38,872
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization                                        11,950         11,650         36,596          34,859
Compensation expense associated with share-based payments            4,035          5,139          11,366          14,306
Deferred income taxes                                                (2,608  )      (2,539  )      1,184           (421     )
Unrealized gains on long-term investments, net of loss from put      (81     )      -              (483     )      -
options
Excess tax benefit related to share-based compensation               (347    )      (190    )      (639     )      (3,328   )
Provision for bad debts                                              59             342            120             756
In-process research and development                                  -              -              -               955
Litigation loss provision                                            29,400         -              29,400          -
Other non-cash adjustments, net                                      (121    )      -              (61      )      -
Changes in operating assets and liabilities, net of effects of
acquisitions:
Accounts receivable                                                  (11,936 )      (10,291 )      32,128          37,663
Prepaid expenses and other current assets                            (844    )      1,207          (34      )      1,178
Other assets                                                         2,337          544            1,687           (348     )
Accounts payable                                                     1,310          (2,640  )      (1,988   )      (1,557   )
Accrued compensation                                                 (652    )      (2,748  )      (7,691   )      (7,840   )
Other accrued expenses                                               (652    )      1,944          (10,110  )      (3,738   )
Income taxes payable                                                 (1,973  )      6,831          (8,280   )      (7,657   )
Deferred revenue                                                     10,436         8,539          (3,733   )      10,671
Other liabilities                                                    481            13             3,508           33
Net cash provided by operating activities                            43,743         35,118         116,307         114,404
Cash flows from investing activities:
Purchases of property and equipment                                  (4,337  )      (2,651  )      (8,277   )      (8,181   )
Cash paid for acquisitions, net of cash acquired                     (96     )      (82,554 )      (96      )      (135,226 )
Change in restricted cash                                            26             (2,370  )      1,690           46,554
Purchases of cost method investments                                 -              -              (3,000   )      (3,160   )
Purchases of investment securities                                   (11,993 )      (4      )      (11,993  )      (52,003  )
Sales and maturities of investment securities                        749            258            1,289           39,322
Net cash used in investing activities                                (15,651 )      (87,321 )      (20,387  )      (112,694 )
Cash flows from financing activities:
Proceeds from loans payable                                          67,897         -              67,897          -
Repayment of loans payable                                           (725    )      -              (725     )      -
Repurchase of common stock                                           (97,203 )      -              (101,119 )      -
Repayment of capital lease obligations                               (67     )      (98     )      (193     )      (205     )
Cash paid for line of credit fees                                    -              -              (1,979   )      -
Proceeds from the exercise of stock options                          22,937         1,820          27,600          38,644
Excess tax benefit related to share-based compensation               347            190            639             3,328
Proceeds received from certain executive officers as part of our     -              200            -               200
restatement remedial actions
Net cash provided by (used in) financing activities                  (6,814  )      2,112          (7,880   )      41,967
Effect of exchange rate changes on cash and cash equivalents         (853    )      3,074          (470     )      1,246
Net increase (decrease) in cash and cash equivalents                 20,425         (47,017 )      87,570          44,923
Cash and cash equivalents, beginning of period                       283,040        327,508        215,895         235,568
Cash and cash equivalents, end of period                          $  303,465     $  280,491     $  303,465      $  280,491

SOURCE: Quest Software, Inc.

Quest Software, Inc. 
Editorial Contact: 
Daphne Kent, 614-726-4787 
daphne.kent@quest.com 
OR 
Investor Contacts: 
Thomas Patterson, 949-754-8336 
thomas.patterson@quest.com 
or 
Stephen Wideman, 949-754-8142 
stephen.wideman@quest.com

With more organizations turning to DB2 LUW for managing business-critical applications, DBAs need a toolset for tackling day-to-day administration tasks, and ensuring optimal DB2 performance across Linux, Unix and Windows. With Quest Management Suite for DB2 LUW, users gain a complete workbench that addresses the critical aspects of DB2 management across all three platforms. All tasks, including database administration, SQL tuning, space management, SQL analysis, and trending and performance diagnostics are addressed within the solution's management console.

"Uptake for DB2 LUW has surged in recent years, and many DBAs find themselves charged with managing disparate DB2 platforms for the first time," said Billy Bosworth, VP and general manager, Enterprise Database business unit, Quest Software. "The functionality within Quest's new management suite helps users of all skill levels proactively manage all critical aspects of DB2 database performance. Within minutes of downloading the solution, users are up and running, and in control of their DB2 LUW environment."

More Information:

http://www.quest.com/quest-management-suite-for-db2-luw/.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

As organizations implement more of SQL Server's BI capabilities, they are finding that their traditional monitoring techniques do not handle the underlying BI subsystems, such as SQL Server Analysis Services (SSAS). Spotlight on SQL Server, Quest's award-winning monitoring and diagnostics tool, now features fully integrated monitoring and diagnostic capabilities for SSAS. Spotlight provides DBAs with a wealth of data on Analysis Services performance and processing in an easy-to-understand graphical representation of SSAS architecture.

"With the enhancements Microsoft has made in the business intelligence space, SSAS is quickly becoming a compelling choice and critical part of the enterprise" said Ari Weil, product manager, SQL Server performance products, Quest Software. "Spotlight has always been the DBA's solution for an all-encompassing view of the database environment and the surrounding enterprise, so it made sense to fully integrate SSAS diagnostics into the same solution. The simplicity and intuitiveness of the data presentation help overcome the steep learning curve DBAs face with SSAS."

Spotlight on SQL Server Enterprise also offers automated CPU diagnosis, which affords users detailed visibility into CPU conditions from both SQL Server and Windows perspectives within a single location, empowering database and systems administrators to troubleshoot issues collaboratively. The new version also integrates direct links to Quest's SQLServerPedia portal from dashboard, giving users access to detailed information on SQL Server performance issues via expert blogs, wiki posts, video tutorials, and more.

Quest will also introduce Foglight for SQL Server, a web-based monitoring and diagnostic solution based on the Foglight framework. Foglight for SQL Server offers 100 percent remote monitoring with highly optimized collections, providing users with a complete, out-of-the-box solution for monitoring their entire SQL Server infrastructure -- all with fast, easy installation. By leveraging the proven power of Spotlight on SQL Server's data collection framework and metric presentation, Foglight for SQL Server includes built-in dashboards, workflows and alarms.

About Quest Software, Inc.

Now more than ever, organizations need to work smart and improve efficiency. Quest Software creates and supports systems management products -- helping our customers solve everyday IT challenges faster and easier. Visit www.quest.com for more information.

Quest, Quest Software, Spotlight, Foglight and the Quest logo are trademarks or registered trademarks of Quest Software in the United States and certain other countries. Other trademarks and registered trademarks are property of their respective owners.

Web Links Referenced in this Release:

Quest Software, Inc: http://www.quest.com/

PASS Summit: http://summit2009.sqlpass.org/

Spotlight on SQL Server Enterprise: http://www.quest.com/spotlight-on-SQL-Server-enterprise/

SQL Server performance: http://www.quest.com/sql-server/performance-management.aspx

SQLServerPedia: http://www.sqlserverpedia.com/

Foglight: http://www.quest.com/application-monitoring/

SOURCE: Quest Software, Inc.

Quest Software, Inc. 
Betsy Mendenhall, 614-726-4842 
Betsy.mendenhall@quest.com