In the SEC's view VMware's backlog practices during the relevant period were controlled for the purpose of determining in which quarters revenue would be recognized, and had the effect of obscuring the company's financial results and avoiding revenue shortfalls versus company financial guidance and analysts' estimates in at least three quarters during FY20, as well as full-year FY20. The SEC charged VMware with non-scienter based provisions of the Securities Act and Exchange Act. VMware agreed to pay a civil monetary penalty of $8,000,000. VMware did not admit or deny the SEC's findings.