Feeds

Violin Memory fiddles with board, adds new director – music to Clinton Group's ears?

Bolshy investor appears pleased to see ex-NetApp bod

Next gen security for virtualised datacentres

Violin Memory has announced a new board director and expanded the board from seven to eight seats to do so.

The Clinton Group, the activist investor that's been yelling at Violin to sell itself, is now on-board and on-message.

The new director is Vic Mahadevan, the ex-NetApp chief strategy officer. The canned quotes are full of the usual guff but between the lines they get interesting.

“Violin is a great company with unmatched enterprise and cloud storage solutions,” said Mahadevan, “a rapidly expanding customer base, and significant growth opportunities in the evolving market for enterprise flash solutions. I look forward to working with the board as Violin embarks on its next phase of growth and works to generate value for all Violin Memory stockholders.”

"All Violin Memory stockholders", take note.

Here's CEO and president Kevin DeNuccio: "[Mahadevan's] significant senior management experience in the industry, specifically in the enterprise storage space as Chief Strategy Officer for NetApp, will be invaluable as we continue to push forward with our strategic initiatives to improve execution, continue to lead the storage market with our technology, and drive sustainable long-term growth.”

That's "sustainable long-term growth" as in, we're not going to sell the company.

Here's the Clinton Group viewpoint, expressed by Joseph A. De Perio, its senior portfolio manager: "We are supportive of the steps the Board of Directors and management have taken to reorient the Company to an improved strategy for achieving growth and profitability. We appreciate Violin Memory’s willingness to engage constructively with stockholders [meaning us], and we believe Vic Mahadevan’s significant domain expertise and experience will benefit all of Violin Memory’s stockholders [including us with our holding from which we intend to profit].”

Violin Memory has entered into an agreement with Clinton Group, under which the Group will, among other things, vote its shares in favour of the election of Violin's slate of directors at its 2014 annual meeting of stockholders. The provisional May 23 date for that meeting has been pushed back to a date to be determined by the board; no rush, then.

Our reading between the lines is that the Clinton Group supports DeNuccio's turnaround strategy and progress so far, and it reckons Mahadevan is supportive of its desire to increase the stock price. Further, it believes that, for now, the turnaround plan is a better option than selling Violin.

Let's add a little interesting pair of tit-bits to this tasty dish: Joe De Perio joined the board of troubled Overland Storage when the Clinton Group led a share placement by Overland in March 2011. Mahadevan has been on Overland Storage's board since November 2012. It could be that Mahadevan is the Clinton Group's pick for Violin's expanded board. ®

Build a business case: developing custom apps

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
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?