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The U.S. Securities and Exchange Commission said on Monday it has charged cloud computing company VMware Inc with misleading investors by obscuring its financial performance.
www.reuters.com
This happened while Pat Gelsinger was in charge. He fits in really well with the Intel culture.
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.
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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