Violin Memory shares spike, Clinton Group urges sale of company, management provides business update


Violin Memory (VMEM +10%) shares spike after news breaks that activist shareholder Clinton Group has urged the sale of the company in a letter to the board.

Earlier, management provided a business update, stating that the company "remains on track to launch additional, major product offerings in early 2014 that will strengthen the Company's software stack and position the Company to maintain its leadership in the enterprise memory market."

The company expects to achieve profitability in 2015, and reiterates a long-term financial model expecting gross margins of 58%-62%, and opex of 43%-47% of revenue.

Update: Clinton Group letter

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Comments (3)
  • Stone Fox Capital
    , contributor
    Comments (9536) | Send Message
     
    the problem is that competitors will unleash pricing pressures to ensure that VMEM doesn't make it to profits.
    19 Dec 2013, 03:01 PM Reply Like
  • gregory.lynn
    , contributor
    Comments (51) | Send Message
     
    That's a very bold statement, if Violin really does have the best technology then I would think people should pay a little more.
    19 Dec 2013, 04:33 PM Reply Like
  • Mattg22@aol.com
    , contributor
    Comment (1) | Send Message
     
    Its in the gap now. Test support at $3.50 and relaunch.
    20 Dec 2013, 12:19 AM Reply Like
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