Feeds

Violin Memory falls through basement in first day of trading

World's smallest (publicly listed) violin plays a sad IPO tune

Intelligent flash storage arrays

Violin Memory's hotly-anticipated IPO fizzled on the first day of trading.

The flash-array company had raised some $162m by selling its shares at $9, but on the first day of trading the stock opened below $8 and fell from there.

The stock closed at $7.02 on Friday, down 22 percent. Violin Memory has posted a loss for the last three years in a row, and losses have widened every year while revenues have inched up.

Last year, the company posted a $109m loss on revenues of $73.7m. It had hoped to raise $2bn with its IPO.

Some of the potential reasons for the drubbing the shares received could lie with uncertainty over Violin's business. In 2012, HP accounted for 65 percent of the company's entire revenues, but dropped Violin in October over fears of competition with 3-PAR. As we said at the time, this was "devastating".

Thirty-seven percent of the company's revenues in 2013 came from a mere five clients, some of which resell to the US government, which is currently going through one of its periodic bouts of cost-cutting.

Other reasons could be the recent bout of consolidation in the storage market, with Cisco's purchase of Whiptail, Western Digital's purchase of Virident, and heavy internal R&D by storage firms such as HP and EMC.

This, combined with the poor state of flash-storage bellwether Fusion-io, could help explain why investors were turned off buying shares in just-another-flash-array (JAFA) company. Violin trades on the New York Stock Exchange under the symbol VMEM. ®

Intelligent flash storage arrays

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.