VMware to Pay $8M in Penalties and Fees to Revoke the Time of Delinquency…


At a time when vendor backorders are at an all-time high and their vetting is also increasing, VMware has agreed to pay an $8 million fine in 2019 and 2020 for dishonest backorder reporting practices.

The Securities and Exchange Commission had accused VMware of misleading investors about its backlog management practices, specifically alleging that VMware had pushed revenue into future quarters by delaying product shipments to customers and concealed the company’s declining performance compared to its guidance, the company said the SEC.

“The SEC order notes that, beginning in fiscal 2019, VMware began deferring delivery of license keys for some sales orders until shortly after the end of the quarter so that it could recognize revenue from related license sales in the following quarter.

“Per SEC order, VMware has deferred tens of millions of dollars in revenue to future quarters to build a buffer in those periods and to…

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