WASHINGTON, Sept 12 (Reuters) – The U.S. Securities and Exchange Commission said on Monday it had charged cloud computing company VMware Inc with misleading investors by obscuring its financial performance.
The company was charged for misleading investors about its order backlog management practices, which 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, the SEC said in a statement.
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, the SEC said. (Reporting by Kanishka Singh in Washington and Ismail Shakil in Ottawa; editing by Jonathan Oatis)
