"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.
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