Dell And VMware Withdraw 2021 Fiscal Targets Due To COVID-19 Pandemic
Dell Technologies and VMware have both withdrawn their 2021 financial guidance as a result of the uncertain impact the COVID-19 pandemic will have on both businesses.
As part of its fourth-quarter earnings announcement on February 27, 2020, VMware provided financial guidance for the first quarter of fiscal 2021 and for full-year fiscal 2021.
“As described in the risk factors contained in VMware’s annual report on Form 10-K filed on March 26, 2020, VMware is unable to predict the extent to which the global COVID-19 pandemic may adversely impact its business operations, financial performance and results of operations,” said VMware in a filing with the US Securities and Exchange Commission (SEC).
“As a result of the increased level of uncertainty arising between the earnings announcement and the filing of the Form 10-K, VMware has determined that it is necessary to withdraw its previously issued financial guidance.
“VMware plans to provide more information during its first-quarter earnings call based on the information available at that time.”
Similarly, Dell Technologies told the SEC that the company is unable to predict the extent to which the global COVID-19 pandemic may adversely impact its business operations, financial performance and results of operations for the current fiscal year.
“As a result of the rising level of uncertainty resulting from the pandemic, the company has determined to withdraw its previously issued full-year fiscal 2021 financial guidance,” said Dell Technologies in a written statement to the SEC.
“We anticipate a negative impact to Q1 seasonality driven by softness in our China business, which is our second-largest market.
“Monitoring macroeconomic and IT spending environments, softness in large Enterprise and China, and potential impact of Covid-19.”