SEC Charges VMware for Misleading Investors

The Securities and Exchange Commission charged VMware for “misleading investors about its order backlog management practices,” which allowed the company to “push revenue into future quarters by delaying product deliveries to customers, concealing the company’s slowing performance relative to its projections.”

• SEC order finds that, starting in 2019, VMware began delaying delivery of license keys on some sales orders until just after quarter-end, and shifted tens of millions of dollars in revenue into future quarters
• Without admitting or denying the findings in the SEC’s order, VMware consented to a cease-and-desist order and to pay an $8 million penalty

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