(HedgeCo.Net) The Securities and Exchange Commission has charged VMware Inc. for misleading investors about its order backlog management practices, which enabled the Palo Alto, California-based technology company to push revenue into future quarters by delaying product deliveries to customers, concealing the company\u2019s slowing performance relative to its projections.<\/p>\n\n\n\n
The SEC\u2019s order finds that, beginning in fiscal year 2019, VMware began delaying the delivery of license keys on some sales orders until just after quarter-end so that it could recognize revenue from the corresponding license sales in the following quarter. According to the SEC\u2019s order, VMware shifted tens of millions of dollars<\/strong> in revenue into future quarters, building a buffer in those periods and obscuring the company\u2019s financial performance as its business slowed relative to projections in fiscal year 2020. Although VMware publicly disclosed that its backlog was \u201cmanaged based upon multiple considerations,\u201d it did not reveal to investors that it used the backlog to manage the timing of the company\u2019s revenue recognition.<\/p>\n\n\n\n “As the SEC\u2019s order finds, by making misleading statements about order management practices, VMware deprived investors of important information about its financial performance,” said Mark Cave, Associate Director in the Division of Enforcement. “Such conduct is incompatible with an issuer\u2019s disclosure obligations under the federal securities laws.”\u00a0\u00a0<\/em><\/p>\n\n\n\n The SEC\u2019s order finds that VMware violated antifraud provisions of the Securities Act of 1933 as well as certain reporting provisions of the federal securities laws. Without admitting or denying the findings in the SEC\u2019s order, VMware consented to a cease-and-desist order and to pay an $8 million penalty.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n “<\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" (HedgeCo.Net) The Securities and Exchange Commission has charged VMware Inc. for misleading investors about its order backlog management practices, which enabled the Palo Alto, California-based technology company to push revenue into future quarters by delaying product deliveries to customers, concealing […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048,16047],"tags":[],"class_list":["post-82580","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news","category-insider-trading-2"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/82580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=82580"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/82580\/revisions"}],"predecessor-version":[{"id":82581,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/82580\/revisions\/82581"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=82580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=82580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=82580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}