Violin Memory (NYSEVMEM)

Violin Memory (NYSEVMEM)

Violin Memory Is Near Bankruptcy

Violin Memory (NYSE:VMEM) just issued another wretched quarterly income report and financial specialists will at last need to get ready for the organization in all likelihood entering liquidation procedures inside the following few quarters.

Since opening up to the world toward the end of September 2013, Violin Memory hasn’t precisely been an example of overcoming adversity with the organization at first passing up a major opportunity for investigators’ evaluations straight out of the container and kept on taking after this way for the majority of its time as an open organization.

Indeed, even a CEO change only two quarters after its IPO did not pivot the organization’s fortunes and incomes proceeded with their apparently relentless decay practically every quarter. Truth be told, the organization’s quarterly income run rate has now descended by about 75% from the season of the IPO to simply $7.5 mln reported yesterday.

The resulting earnings call was among the most discouraging I have seen for quite a while as administration recognized.

We are at present conversing with both vital and money related backers to deliver our need to raise capital and the general budgetary structure of the organization. We declared the recording of a rack enlistment amid last quarter for 20% of our remarkable shares.

Bruce Grant our biggest shareholder and most up to date board part is driving this exertion with me. Bruce keeps on demonstrating his support and confidence in the organization. He will likewise keep on having open examinations with our bondholders to boost the achievement and esteem formation of the business as we assemble towards benefit.

In all probability, there won’t be glad completion for Violin Memory and its as of now severely stricken shareholders as the organization’s present capital structure keeps the truly necessary raise of crisp assets. Given the sheer measure of exceptional senior obligation, I don’t expect any kind of recuperation for current value holders now.

Author: Travis

Started investing in 2013 with $8,500 I turned that into 180k within a few months. Every year since I have increased the amount of money made from micro cap stocks and stock options.