VMware charged by SEC with misleading investors with sales practices


VMware Inc. VMW, +0.47% was charged by the Securities and Exchange Commission late Monday for misleading investors about its sales practices. The SEC said “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.” With this practice, “VMware shifted tens of millions of dollars in revenue into future quarters, building a buffer in those periods and obscuring the company’s financial performance as its business slowed relative to projections in fiscal year 2020,” the SEC said. VMware did not admit nor deny the charges and consented to an $8 million fine. In comparison, in late August,VMware reported $3.34 billion in revenue for the July-ending quarter, and net income of $347 million. Also, VMware is in the process of being acquired by Broadcom Inc. [s:avgo] for $61 billion in cash in stock.

This article was originally published by Marketwatch.com. Read the original article here.

Previous articleMarket Snapshot: U.S. stocks finish higher for fourth straight session ahead of inflation reading for August
Next article‘The Crown’ interest surges on Netflix after Queen Elizabeth II’s death


Please enter your comment!
Please enter your name here