Is Parallels compatible with Time Machine?

With the way Time Machine works (backing up the entire file with every change) I would suspect that you would want to remove from the backup both your Parallels VM and any VMware VMs you have installed. I'd hate to have my VM backed up every time the data had a new timestamp from a data change.

That said, I've not yet used Time Machine because Apple removed support for Airport Disks.
 
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