Seeking Alpha

Violin Memory, Inc. (VMEM)

  • Mon, Feb. 9, 2:55 PM
    • Today's notable tech gainers include 3D printer maker ExOne (XONE +6%), data center switch vendor Arista (ANET +4.2%), solar microinverter maker Enphase (ENPH +6.1%), ID theft-protection services firm LifeLock (LOCK +6.8%), voice processor developer Audience (ADNC +10.3%), contract manufacturer Multi-Finline (MFLX +10.2%), and cloud file-sharing platform/recent IPO Box (BOX +9.1%).
    • Notable decliners include flash storage array vendor Violin Memory (VMEM -5.6%), ultracapacitor maker Maxwell (MXWL -6.3%), SMB Web services provider (WIX -4.8%), salvage auction site Liquidity Services (LQDT -5.4%), and carrier billing software/cloud services provider Synchronoss (SNCR -5.6%). The Nasdaq is down 0.3%.
    • LifeLock reports earnings tomorrow afternoon. Audience is four days removed from beating Q3 estimates and offering in-line guidance. Arista is reversing its Friday's losses, and Box is adding to the Friday gains that came after a positive Jim Cramer mention.
    • Synchronoss is adding to the losses seen last week after the company offered cautious 2015 cloud revenue guidance to go with a Q4 beat, and Maxwell to the losses seen due to the soft Q1/2015 guidance provided with a Q4 beat. Liquidity is giving back some of last week's huge post-earnings gains. Wix reports on Wednesday morning.
    • Earlier: GoPro, Yelp see more post-earnings pain
    • Earlier: Chinese solar stocks rally
    | 1 Comment
  • Dec. 18, 2014, 2:04 PM
    • With the help of stronger-than-expected hardware sales, Oracle (ORCL +9.2%) beat FQ2 estimates in spite of a 400 bps forex headwind (twice what was originally expected). FQ3 guidance was conservative after taking forex pressures into account.
    • The numbers have been good enough for Oracle to surge to new highs and receive a slew of target hikes, and to lead many enterprise tech names to outperform amid a big market rally. The Nasdaq is up 1.9%.
    • Microsoft (MSFT +3.2%), Cisco (CSCO +2.3%), EMC (EMC +3.7%), VMware (VMW +5.1%), and beaten-down IBM (IBM +2.8%) are among the enterprise tech names outperforming today. Others: SPLK +4.6%. CA +3.5%. RHT +3.4%. VRNS +6.3%. PCTY +5.8%. JIVE +4.6%. VMEM +5.2%. SAAS +4.7%. BRCD +3.8%.
    • Oracle's healthy cloud software numbers are drawing attention: While traditional software license revenue fell 4% Y/Y, its SaaS/PaaS revenue rose 41%. SaaS/PaaS bookings totaled $170M, and are expected to be "well over" $1B in FY16 (ends May '16). Fusion cloud app bookings rose over 100%.
    • On the CC (transcript), Oracle performed its customary trash-talking of cloud app rivals. "We are clearly growing faster than Salesforce (CRM +4%) and were more than three times the size of Workday (WDAY +3.2%)." Both firms are posting solid gains.
    • Oracle's numbers come as Bloomberg reports the Chinese government is looking to "purge most foreign technology from banks, the military, state-owned enterprises and key government agencies by 2020." IBM, Cisco, and other U.S. firms have already seen their Chinese sales fall sharply following last year's NSA spying uproar.
  • Nov. 26, 2014, 5:37 PM
    • Top gainers, as of 5:15 p.m.: NXPI +2.6%. TEX +2.2%. CJES +2.2%. NAT +2.0%. PSLV +1.7%.
    • Top losers, as of 5:15 p.m.: VMEM -4.3%. ATW -3.2%. EJ -2.8%. CPB -2.4%. KITE -2.2%.
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  • Nov. 24, 2014, 6:02 PM
    • Violin Memory (NYSE:VMEM) guides on its FQ3 CC for FQ4 revenue of $23M-$25M, above a $22.4M consensus.
    • FQ3 product revenue was $16.9M, +19% Q/Q and -21% Y/Y. Service revenue was $4.8M, +10% Q/Q and -30% Y/Y.
    • Excluding one-time charges, GAAP opex fell 32% Y/Y to $33.1M. Gross margin slipped to 54% from 55% in FQ2 and a year ago.
    • Maxim's pre-earnings call paid off.
    • FQ3 results, PR
    | Comment!
  • Nov. 24, 2014, 5:43 PM
    • Top gainers, as of 5:15 p.m.: GAZ +10.5%. VMEM +7.8%. CRK +5.6%. NUAN +3.5%. XCO +3.3%.
    • Top losers, as of 5:15 p.m.: WDAY -9.7%. GOMO -8.6%. ANFI -7.5%. LL -4.6%. PANW -3.7%.
    | Comment!
  • Nov. 21, 2014, 4:29 PM
    • Maxim Group has launched coverage on Violin Memory (NYSE:VMEM) with a Buy rating and $8 target ahead of the flash storage system vendor's Monday FQ3 report. Shares rose 2.6% in regular trading.
    • Violin, which has made big changes under new CEO Kevin DeNuccio, is up 29% YTD, but still down 43% from its $9 Sep. '13 IPO price.
    | Comment!
  • Sep. 22, 2014, 1:45 PM
    • High-beta tech stocks are selling off hard as the Nasdaq registers a 1.3% decline. The selling is broad-based, with Internet, solar, and enterprise tech stocks all well-represented among the ranks of major decliners.
    • Major Internet decliners: BIDU -4.7%. ANGI -7%. YELP -5.9%. AWAY -5.1%. CHGG -5.9%. GRUB -5.8%. P -5.2%. Z -4.6%. TRLA -4.8%. ATHM -7.9%. BITA -7%. DANG -5.9%. WB -5.3%.
    • Solar: FSLR -4.5%. SCTY -7.5%. SPWR -4.5%. DQ -7.6%. JKS -5.5%. ASTI -6.3%. ENPH -5.5%. CSIQ -4.8%.
    • Enterprise: WDAY -5.4%. GIMO -6.7%. VMEM -7.7%. IMPV -4.8%. MKTO -4.9%. SPRT -5.1%. CSOD -5.5%.
    • Others: HIMX -4.6%. SIGM -5.6%. WATT -9.7%. CYNI -5.3%. ADNC -5.7%. PXLW -5%. SWIR -5.8%. MITK -6%. OCLR -6%.
  • Sep. 19, 2014, 12:32 PM
    • Down over 9% yesterday after announcing plans to sell $95M in convertible debt due 2019, Violin Memory (VMEM +4.3%) is rebounding after upsizing the offering to $105M (net proceeds are expected to total $100.8M) and setting deal terms.
    • The debt carries an interest rate of 4.25%, and an initial conversion price of $5.62/share - a 22% premium to current levels. The initial purchaser has a $15M overallotment option.
    | 1 Comment
  • Aug. 27, 2014, 4:52 PM
    • Violin Memory's (NYSE:VMEM) product revenue totaled $14.2M in FQ2, +11% Q/Q but -40% Y/Y. Service revenue (driven by past deals) was $4.4M, -18% Q/Q and +52% Y/Y. The company continues facing tough flash storage array competition from the likes of EMC, IBM, H-P, and Pure Storage.
    • Gross margin rose to 55% from 52% in FQ1 and 42% a year ago. GAAP sales/marketing spend -19% Y/Y to $15.1M; R&D spend -31% to $13M; G&A +27% to $5.2M. Job cuts and the recent sale of Violin's PCIe server flash module business helped lower costs.
    • Violin is reiterating FY15 (ends Jan. '15) gross margin guidance of 52%-56%. Opex guidance has been narrowed to $118M-$122M from $115M-$125M.
    • FQ2 results, PR
    | Comment!
  • Jun. 16, 2014, 5:36 PM
  • Jun. 16, 2014, 9:46 AM
    • SanDisk's $1.1B deal to acquire PCIe server flash module leader Fusion-io is giving a lift to hybrid storage array vendor Nimble Storage (NMBL +3.7%) and flash array vendor Violin Memory (VMEM +2.5%).
    • Nimble also might be benefiting from an upgrade to Outperform from Macquarie. Shares failed to get a boost on Friday from an upgrade to Strong Buy from Raymond James. Both moves follow the end of Nimble's lockup expiration last Wednesday.
    • Struggling Violin was reported in February to have held buyout talks with several firms. Activist investor The Clinton Group, which once had been calling for a sale, struck a deal with management in April.
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  • Jun. 16, 2014, 9:15 AM
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  • Apr. 25, 2014, 3:34 PM
    • Guilt by association could be driving down the shares of Violin Memory (VMEM -4.2%), suggests Wunderlich's Kaushik Roy, who believes investors are mistakenly selling because of Fusion-IO's FQ3 results on Wednesday (NMBL is being hit as well).
    • "[Fusion and Violin] both use flash memory but Fusion-IO is primarily a component provider and Violin is a systems provider. Comparing Violin with Fusion-IO is somewhat similar to comparing EMC with Seagate. EMC makes systems whereas Seagate makes components."
    • Roy reiterates his Buy rating on Violin and $6 price target.
  • Mar. 17, 2014, 3:59 PM
    • Ebrahim Abbasi, once the COO of Ethernet switch vendor Force10 (acquired by Dell) and broadband infrastructure vendor Redback Networks (acquired by Ericsson), has been named Violin Memory's (VMEM +6.8%) SVP of operations.
    • Abbasi worked with new Violin CEO Kevin DeNuccio at Redback. His hiring comes two months after COO Dixon Doll, Jr. stepped down.
    | Comment!
  • Mar. 13, 2014, 12:23 PM
    • Wunderlich's Kaushik Roy has started coverage on Violin Memory (VMEM +9.1%) with a Buy and $6 PT. He considers the flash storage vendor's recent troubles surmountable, and notes new CEO Kevin DeNuccio "has a track record for transforming businesses."
    • Roy has also assigned a Buy rating to storage giant EMC. Violin, reportedly on the block, sold off last week after its FQ4 numbers failed to impress.
    | Comment!
  • Mar. 7, 2014, 9:12 AM
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Company Description
Violin Memory Inc provides all-flash storage arrays & appliances delivering application solutions for enterprises. Its FFA-based arrays & enterprise software solutions enhance enterprise agility & mobility revolutionizing economics with rapid ROI and TCO.
Sector: Technology
Country: United States