SEC Charges VMware With Misleading Investors by Obscuring Financial Performance

SEC Charges VMware With Misleading Investors by Obscuring Financial Performance
3D printed clouds and figurines in front of the VMware cloud service logo in a photo illustration taken on Feb. 8, 2022. Dado Ruvic/Illustration/Reuters
|Updated:

WASHINGTON—The Securities and Exchange Commission (SEC) said on Monday it has charged cloud computing company VMware Inc. with misleading investors by obscuring its financial performance.

The company was charged with misleading investors about its order backlog management practices, which the agency said enabled it to push revenue into future quarters by delaying product deliveries to customers, thereby concealing the company’s slowing performance relative to its projections.