Violin Memory resembles toast
Catastrophic loss of value since DeNuccio became CEO
Comment February of 2014 saw Kevin DeNuccio appointed as Violin Memory's CEO. Then the shares were worth about $15.
Today, 32 months later, they are worth $0.13 after a 4:1 reverse stock split and NYSE exit; so $0.0325 in "old money," with the firm now capitalized at $3.27m. Its shares have lost some 99.8 per cent of their value on that basis.
This is beyond ridiculous.
Rough math says Violin's market capitalization when deNuccio became CEO was $142.74m.
It's obvious that shareholders have been hammered with a devastating loss of value since DeNuccio became the CEO.
He and his execs have bought Violin stock with their own money, which showed commitment but has not generated any reward for their investment – for them, for investors or for Violin employees.
DeNuccio did not take a salary, which showed great commitment too. It was not enough.
Each quarter when reporting revenue decline after revenue decline he and his CFO said a rebound was coming. Each quarter, apart from minor and random upticks, it did not.
A firm valued at $3.7m that was once worth almost $150m is basically toast as far as investors are concerned. ®
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