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Dell Technologies and VMware have both withdrawn their 2021 financial guidance as a result of the uncertain impact the COVID-19 pandemic will have on both businesses.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.”
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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.”
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