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VMWare charged with fraud

hist78

Well-known member
Why VMware and Pat Gelsinger bothered to do it? I'm wondering the total amount of revenue related to this manipulation.
 

Daniel Nenni

Admin
Staff member
I worked for a couple of companies that did this as well. We were growing fast and the CEO wanted to even out growth by pushing out revenue. Not hard to do with software subscriptions. Having a HUGE backlog was a good thing as well. This company was mentioned in the book The Big Short. I worked for another company that did the opposite. They transferred hardware to semi trucks in the parking lot so they could recognize shipped revenue. That did not end well at all.

Cooking the books......... Crazy times in the semiconductor industry, absolutely.
 

hist78

Well-known member
I worked for a couple of companies that did this as well. We were growing fast and the CEO wanted to even out growth by pushing out revenue. Not hard to do with software subscriptions. Having a HUGE backlog was a good thing as well. This company was mentioned in the book The Big Short. I worked for another company that did the opposite. They transferred hardware to semi trucks in the parking lot so they could recognize shipped revenue. That did not end well at all.

Cooking the books......... Crazy times in the semiconductor industry, absolutely.

From what I read it seems that VMware was pushing revenue to a later time in order to smooth out the revenue due to future revenue drop or slow growth. They were applying engineering talents to the accounting department, a wrong place to do that.
 
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