Violin Memory: Interesting, Tempting... But Not Quite Worth The Risk
Vince Martin • 69 Comments
Vince Martin • 69 Comments
Turnaround Should Tune Up Violin Memory's Sound And Make It Sing; A Buyout Is The Coda
Contrarian Analysis • 35 Comments
Contrarian Analysis • 35 Comments
Violin Memory Is A Good Buy On The Pullback
Violin Memory's Collapse Continues, But How Does This End?
Ashraf Eassa • 49 Comments
Ashraf Eassa • 49 Comments
Yesterday, 3:00 PM
Yesterday, 9:11 AM
- Gainers: AAU +20%. VGZ +18%. MUX +13%. AKG +12%. GPL +13%. GORO +12%. GFI +12%. EMES +12%. GOLD +12%. AU +12%. SBGL +11%. EXK +11%. KGC +10%. HMY +11%. SAND +10%. ABX +10%. EGO +9%. SA +7%. IAG +9%. AUY +9%. CDE 9%. NGD 9%. AEM 8%. NEM 8%. GG 8%. NG 8%. FSM 7%.
- Losers: LYG -27%. BCS -26%. SAN -24%. RBS -23%. AV -23%. BBVA -22%. DB -18%. ING -18%. BT -18%. VNR -11%. TEF -17%. CS -16%. PUK -15%. MT -15%. AEG -14%. RYAAY -13%. UBS -12%. FCAU -12%. GNCA -12%. NOK -12%. BBL -11%. IPI -11%. TOT -11%. ANFI -11%. MNKD -10%. BCEI -8%. VMEM -10%.
Wed, Jun. 22, 3:00 PM
Fri, Jun. 17, 3:00 PM
Fri, Jun. 17, 12:47 PM
Tue, May 31, 3:40 PM
- Violin Memory (VMEM +24.8%) has risen above $0.50 on volume of 7M shares, far above a 3-month daily average of 1M. No news explaining the move has hit the wires yet.
- The struggling flash storage array vendor is up 41% since posting mixed FQ1 results on May 24. However, shares are still down 42% YTD and trade at a small fraction of their $9 2013 IPO price. A strategic review ended in March without a sale.
Tue, May 24, 5:16 PM
- Violin Memory (NYSE:VMEM) beat expectations with a narrower net loss and despite revenues that fell again Y/Y and sequentially, though less steeply Y/Y than last quarter.
- Net loss on a non-GAAP basis was $0.16, vs. a year-ago loss of $0.22. Gross margin was 42% (non-GAAP basis), vs. 48% in Q4 and a year ago.
- Revenue breakout: Product revenue, $4.16 (down 39%); Service revenue, $5.56M (up 5.3%).
- Cash and equivalents, restricted cash and short-term investments came to $49.2M at quarter's end.
- Shares had gained 14.2% today to their highest point in a month.
- Press Release
Tue, May 24, 4:06 PM
Mon, May 23, 5:35 PM
Fri, Mar. 11, 12:11 PM
- With fears about the company's long-term survival running high, Violin Memory (VMEM -25.9%) has fallen towards $0.50 after missing FQ4 sales estimates (while slightly beating on EPS due to cost cuts), stating it has ended its strategic review (without selling the company), and disclosing it has laid off another 25% of its workforce. The company's market cap is now at $50M.
- Violin once more declined to provide formal revenue guidance on its earnings call (transcript). However, it did forecast a sales pickup. CEO Kevin DeNuccio: "[W]e believe that our revenues have now bottomed from our difficult product transition, and believe we can increasingly grow quarterly revenues to a view at yearend that can produce 25% to 35% annual growth in FY 2017."
- DeNuccio admitted several factors created "challenges" for Violin's strategic review. Among them: "Industry disruptions" such as cloud storage, de-duplication, and storage virtualization adoption, the face Violin's Flash Storage Platform (FSP) is still "new and maturing in many new accounts around the world," and the fact Violin's "financial cost structure and losses were significantly out of balance with our current revenues."
- FQ1 cash burn is expected to total $16M-$18M. Violin, which had $76M in cash at the end of FQ4, is counting on its job cuts to help lower cash burn to less than $10M in subsequent quarters. Non-GAAP operating expenses are expected to drop to $18.5M-$19.5M in FQ1 from FQ4's $22.8M, and $16M-$17M in FQ2.
- Violin's FQ4 results, details
Thu, Mar. 10, 4:37 PM
- "The review of strategic alternatives, which Violin conducted with Jefferies, has produced multiple strategic go-to-market and technology relationship opportunities, which we intend to pursue," says CEO Kevin DeNuccio in Violin's (NYSE:VMEM) FQ4 report. "We have also concluded the formal review process, thereby returning the company's focus to growth and profitability."
- Violin originally announced a strategic review in December within its FQ3 report. With no buyer apparently found, the flash array vendor is launching a new restructuring that it promises will provide "a pathway to profitability over the next 18-24 months without the need to raise additional capital." Headcount has been reduced by 25% from where it stood as of Oct. 31.
- FQ4 details: Product revenue fell by $2M Y/Y to $4.3M; service revenue rose by $0.4M to $6.6M. Non-GAAP gross margin fell to 48% from 56% a year ago. GAAP operating expenses (about to drop due to the job cuts) rose by $0.2M to$27.8M. Violin ended FQ4 with $76M in cash (down from $95.9M at the end of FQ3) and $133.4M in debt ($120M convertible).
- Shares haven't yet moved after hours. Violin went into earnings $0.09 above a 52-week low of $0.60.
- Violin's FQ4 results, earnings release
Thu, Mar. 10, 4:11 PM
Wed, Mar. 9, 5:35 PM
Fri, Jan. 22, 3:30 PM
- Plenty of tech names crushed over the first 20 days or so of January are sharply higher as the Nasdaq (up 2.4%) continues rebounding from Wednesday's intraday lows. Many still have sizable YTD losses.
- Big gainers among telecom equipment/component firms: Optical component vendors Oclaro (OCLR +9.5%) and NeoPhotonics (NPTN +6%), mobile infrastructure/services giant Ericsson (ERIC +6.2%), optical networking hardware vendor Infinera (INFN +5.2%), and microcap RF backhaul hardware firms DragonWave (DRWI +24.3%) and Ceragon (CRNT +10%). Ericsson underperformed yesterday following a pre-earnings Goldman downgrade.
- Among enterprise tech firms: Threat-prevention technology and services provider FireEye (FEYE +7.7%), big data software provider Hortonworks (HDP +16.1%), security software/services firm Rapid7 (RPD +9.1%), data governance software firm Varonis (VRNS +5.6%), and flash storage array vendor Violin Memory (VMEM +13.6%). FireEye fell slightly yesterday after making a Q4 pre-announcement and announcing a $200M+ acquisition. Hortonworks was crushed on Tuesday after a Q4 pre-announcement and stock offering shelf registration.
- Among chip industry firms: RF chipmaker Skyworks (SWKS +6%), audio codec developer Cirrus Logic (CRUS +7.3%), smart TV/home automation chipmaker Sigma Designs (SIGM +6.5%), FPGA/sensor hub maker QuickLogic (QUIK +9.2%), and chip equipment firms Axcelis (ACLS +4.9%) and Aixtron (AIXG +4.9%). Major Cirrus/Skyworks client Apple reports on Tuesday afternoon.
- Also up big: 3D printer maker 3D Systems (DDD +7.1%), Russian search leader Yandex (YNDX +7.5%), mortgage origination software firm Ellie Mae (ELLI +6.4%), Chinese solar firm Yingli (YGE +11.4%), and SMB Web services provider Wix.com (WIX +5.3%).
- Previously covered: Rosetta Stone, Live Ventures, HP Enterprise, Mitel, Mobileye, Qorvo, SunPower, SolarCity
Thu, Jan. 7, 2:56 PM
- The Nasdaq is down 2.4%, and the S&P down 2%, as investors continue fleeing to safety amid ongoing Chinese worries. Not surprisingly, many high-beta tech names are seeing much steeper losses.
- 5%+ decliners include action camera leader GoPro (GPRO -7.9%), fitness band leader Fitbit (FIT -7.6%), threat-protection hardware/software provider FireEye (FEYE -7.2%), video processor developer/GoPro supplier Ambarella (AMBA -8.6%), flash storage array vendor Violin Memory (VMEM -12.7%), capacitor maker Kemet (KEM -14.6%), and cloud healthcare software firms Castlight (CSLT -8.3%) and Veeva (VEEV -6.4%).
- Others include Russian search leader Yandex (YNDX -5.9%), 3D measurement/scanning hardware firm FARO Technologies (FARO -7.5%), ultracapacitor maker Maxwell (MXWL -9.1%), car-buying site TrueCar (TRUE -8.8%), analog/mixed-signal chipmaker ON Semi (ON -5.4%), online ad platform Rocket Fuel (FUEL -6.3%), and LED/chip equipment maker Aixtron (AIXG -6.8%).
- Previously covered: Chinese tech stocks, solar stocks, Everyday Health, SunEdison, Atmel
Dec. 23, 2015, 12:06 PM
- Hard-luck Violin Memory (VMEM +6.5%) has rallied towards $1 during a week that has seen NetApp announce it's buying flash array vendor/Violin rival SolidFire for $870M. The deal could be fueling hopes Violin, which currently sports a $98M market cap, will also find a suitor.
- Violin announced three weeks ago (along with an FQ3 miss) it has launched a strategic review. Maxim Group later estimated Violin's IP is worth ~$2/share, while adding Hitachi is the most logical acquirer.
- Shares still -79% YTD.
Violin Memory, Inc. provides persistent flash-based storage solutions, which is designed to bring storage performance in line with high-speed applications, servers and networks. The company was founded by Jon C. R. Bennett and Donpaul C. Stephens on March 9, 2005 and is headquartered in Santa... More
Country: United States
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