back to article What a bum note: Violin's shares perform financial diminuendo

Violin Memory's stock price has plummeted to $1.30 from its IPO level of $7.51 on October 4, 2013. That's an 82.7 per cent fall in 25 months. CEO Don Basile was axed in mid-December 2013 after the stock had fallen to $2.69; he was ousted as a result of the disastrous post-IPO business performance. Violin_Memory_stock_price …

  1. Throatwarbler Mangrove Silver badge
    FAIL

    Doom doom doom

    It's a shame that Violin really seemed to misjudge the market. They had an excellent play for super low-latency applications, but it turns out that market isn't that big, and their initial pricing was way too high for people who didn't need the bleeding-edge performance. Their prices have come down now, but Flash storage has come down generally, so Violin is maybe at parity with other players but without any special sauce to distinguish them, arguably apart from performance. On the flip side, you can get better performance now from other vendors than used to be possible, vendors who seem to be less obviously doomed.

    1. Lusty

      Re: Doom doom doom

      I wouldn't say they are doomed. Anyone with half a brain knew their market was tiny before they IPO'd but unfortunately there was money to be made.

      All they need to do is adjust expectations - there will be no growth, there will be consistently great products within the limited realm of ultra performance. The company can easily continue selling what they have to their market for years to come as long as the expectation of growth goes away. Unfortunately the stock market doesn't work like that which is why good companies need to stay private where profit is king and revenue/growth is irrelevant.

      1. ToddR

        Re: Doom doom doom

        Do you really think they are ultra-performance?

        Kaminario and Kove are ultra, Violin is jsut another flash player with another pretty storage box

        1. Lusty

          Re: Doom doom doom

          They are not just another flash player they have a very different architecture and hardware which removes various bottlenecks other flash systems have. They are far lower latency than normal flash systems

      2. Anonymous Coward
        Anonymous Coward

        Re: Doom doom doom

        How, they lose money every quarter. They raised debt, and they are running out of cash. They need to do at least $35mil of revs a quarter to even sniff profit. Do your homework. Look at the financial statements.

    2. ToddR

      Re: Doom doom doom

      If you don't do your basic market research you are a chumpette.

  2. David Roberts
    Windows

    Intetesting...

    ......that the more they sold the bigger the loss.

    I have a cunning plan which cannot fail.

  3. Anonymous Coward
    Anonymous Coward

    This is where I need...

    ..Tim Worstall back to explain to me how initial share prices are worked out in the first place. Never did understand that, although I have a nasty feeling that it's another case, along with so much else, apparently, to do with the stock market, of 'wishful thinking'.

    @David Roberts - Yeah, I was thinking that too, but how do we get the Spice Girls into the paella? Poik!

  4. cyberdemon Silver badge
    Coat

    Cue...

    The violins.

  5. BuckRogers

    My crystal ball says that HP buys them after they fail the next earnings release

    I think HP would take a punt at this if they can get it for under $200M, just for the patents and hardware IP as a stop gap till they have their own NVMe/DSSD type solution.

    It could act as a high performance/low latency tier for the 3Par arrays without having to do too much re-engineering.

    Otherwise, there will be a fire sale by the middle to end of 2016 on strings, tunning pegs, and chin rests.

    1. Anonymous Coward
      Anonymous Coward

      Re: My crystal ball says that HP buys them after they fail the next earnings release

      Wrong, the IP is not worth $50mil and HP is not going to buy a bad business competing against 20+ companies in this space now. Violin had a chance when they were the only game in town, or one of them. Now, they are lost in a sea of competition.

      1. Anonymous Coward
        Anonymous Coward

        Re: My crystal ball says that HP buys them after they fail the next earnings release

        After Autonomy, Palm OS, EDS, .... I'd be surprised if they don't. :-)

  6. Anonymous Coward
    Anonymous Coward

    Someone's fiddling the share price.

    1. Anonymous Coward
      Anonymous Coward

      And that is the end of Violin Memory.

      Now stay tuned for our next episode: Pure Storage!

      1. Anonymous Coward
        Anonymous Coward

        Bingo, short PSTG. We saw the model to short with NMBL and VMEM. Easiest trade of 2016.

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