Dell, VMware withdraw 2021 financial guidance due to COVID-19 pandemic

Dell told the SEC it could not predict the extent to which the crisis would impact its business, even while it is seeing "heightened interest in work from home solutions and continuing execution in its global supply chain."
Written by Stephanie Condon, Senior Writer

Both Dell Technologies and VMware on Thursday said they have to withdraw their 2021 fiscal guidance as a result of the uncertain impact of the COVID-19 pandemic. Several other companies, including Twitter and Square, have similarly had to lower or withdraw their financial outlook due to the crisis. 

In a filing with the US Securities and Exchange Commission (SEC), Dell wrote, "While the Company currently is seeing heightened interest in work from home solutions and continuing execution in its global supply chain, and remains confident in its liquidity position, 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." 

VMware similarly told the SEC it was withdrawing its outlook "as a result of the increased level of uncertainty" in the past month. 

One month ago, when it reported its fourth quarter fiscal 2020 results, Dell forecast full-year fiscal 2021 revenue between $91.8 billion and $94.8 billion, with non-GAAP earnings between $5.90 a share and $6.60 a share. 

In a conference call discussing VMware's fourth quarter results, the company forecast fiscal 2021 revenue of approximately $12.05 billion. For Q1 2021, VMware forecast total revenue of approximately $2.73 billion. That guidance, the company said, included an impact from COVID-19 on VMware's Asia Pacific results in Q1. 

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