Violin Memory prices 18M-share IPO at $9

Violin's (VMEM) price represents the midpoint of an $8-$10 range. It translates into a market cap of $736M, or 10x FY13 (ended Jan. '13) sales. Shares begin trading on Friday.

Though in a hot market (enterprise/data center flash storage) that has seen plenty of M&A activity as of late, Violin's IPO apparently failed to see the price increases witnessed by Rocket Fuel and FireEye. Are underwriters just being conservative, or are there concerns about strong competition (both from giants such as EMC and Cisco, and upstarts such as Nimble Storage) and the H-P deal wind-down?

S-1, IPO preview

Previous: Price range, 1H financials, M&A activity, technology

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Comments (2)
  • Stone Fox Capital
    , contributor
    Comments (9935) | Send Message
    Reported $51M in 6 months revenue through July so the runrate is now over $100M.
    27 Sep 2013, 12:44 AM Reply Like
  • David Jackson
    , contributor
    Comments (1279) | Send Message
    I spoke with someone who knows this space, and their perspective was that Violin competes with EMC and Netapp in their core markets and wins. No one else in this space is doing that.
    27 Sep 2013, 09:00 AM Reply Like
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