The SEC has charged the cloud computing and virtualization technology company VMware Inc. from Palo Alto, California, for misleading investors about its order backlog. management practices.

WMware pushed revenue into future quarters by delaying deliveries to customers, therefore misleading investors about its financial status by concealing the fact that the company’s performance wasn’t meeting the levels projected. According to the SEC’s order, tens of millions of dollars was shifted in revenue into future quarters.

“As the SEC’s order finds, by making misleading statements about order management practices, VMware deprived investors of important information about its financial performance,” said Mark Cave, Associate Director in the Division of Enforcement. “Such conduct is incompatible with an issuer’s disclosure obligations under the federal securities laws.”  

The SEC found that VMware violated the antifraud provisions of the Securities Act of 1933 including certain reporting provisions of the federal securities laws.

In response to the SEC’s allegations, VMware has neither admitted or denied the charges, but has consented to a cease-and-desist order and to pay an $8m penalty.

Read the full press release here.