Nutanix will not be able to file the 10-Q report due to internal software irregularities

Nutanix, a company specializing in hybrid multicloud technologies, has informed its investors of the critical situation it is going through as it has been using licensed software illegally for several years. This fact will cause sanctionsso it has been placed in the hands of his team of lawyers to know the exact amount that is owed to the external software provider.

Rukmini Sivaraman, Nutanix’s financial director, assures that he was not informed about this irregularity and that therefore they will now have to work to solve their economic situation immediately. Given this situation, they have not been able to accurately report about its economic data for the quarter.

The irregularity noticed in the software used by Nutanix is ​​that it, instead of being for evaluation, which was its exact purpose, was used for validation purposesinteroperability tests and proofs of concept.

The problem detected by the company, assures Rajiv ramaswani (CEO) is that in some cases they were using the software evaluation to do client interoperability or proof of conceptthat is, to validate.

The origin of the complaint

The question would be how this information got to the US Securities and Exchange Commission (SEC). It could be the result of the irruption of a new Chief Financial Officer (CFO)which, when taking charge of the financial management of the company, has found irregularities that it wants to solve to avoid further damage in the future.

The SEC has ruled on the matter, assuring that said irregularity does not believe that it will have a negative impact on the fundamentals and general prospects of the business, but has not wanted to go into more detail. In this situation, Nutanix has been unable to file its 10-Q report.

Nutanix’s own investors have been interested in knowing the exact amounts invested in the vendor, but Ramaswami has refused to provide exact dates or numbers. They are also optimistic and assure that they are focused on acquiring a profitable and sustainable growth.

Your most recent economic data

The entity based in San José (California) did report that it obtained during the second quarter of the year a Earnings Per Share (EPS) of $0.11, figures better than expected. Revenues for the quarter were at the 486.5 million dollarsbeing the initial forecast of 464.97 million dollars.

Facing the third quarter of fiscal year 2023, which closes in April, it is expected that they will obtain income of 430-440 million dollars, versus an initial estimate by analysts of $425.38 million. Thus, the EPS revenue forecast is expected to be $1.81against the opinion of the analysts that it was of 1.78 dollars.

However, Nutanix shares have fallen by 7.70%, about 28.77 dollars, during the last three months, although if the global of the last year is compared, it will be synonymous with a rise of 24%. has recently received 12 positive reviews and two negative BPA reviews in the past 90 days.

Nutanix itself published partial numbers for the quarter that showed a 18% increase in revenue in the first quarterrising to $486.5 million. The recurring revenue increased by 32%, that is, 1.38 million euros in the quarter. They also ensure that subscription revenues improved quarterly forecasts, although it will be impossible for them to meet the deadlines for submitting their 10-Q.

Nutanix is ​​currently in a phase of measuring results and preparing incentives in projects such as azure and other allies like Hewlett Packard Enterprise (H.P.E.), Lenovo either Dell. The firm works with any brand of servers, although with HPE it has hybrid cloud projects and GreenLakeas it happens with Lenovo and its model TrueScale. Its agreements transcend server manufacturers and reach Hitachi, Cisco, Fortinet or Palo Alto, among others.

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