I make that a share price of 5 cents. Tips and correction sent over.
Violin Memory has bowed to the inevitable and made a Chapter 11 filing. A chapter 11 bankruptcy filing doesn't always signal it's over, but it might mean the early flash pioneer is getting there. Violin Memory's tortured struggle to stay in business now depends upon it streamlining its business further and pursuing a sale. …
Pathological belief that since they got lucky once with Redback they could do it again. Sad that they are stringing on their remaining clients with more delusions that some miracle will occur and then they can then rehire the entire Support organization that they just fired ... poor suckers that bought these guys promises
Basically, what went wrong is that a great company with a great niche product went public. The shareholders then focussed on growth rather than doing well what they were good at. Growth isn't always possible or a good thing. Violin could have remained in their niche and made a lot of money, they could have licensed their excellent IP, they could have done a lot of things had growth not been the driving goal.
Were they a failure? No, the initial shareholders and investors made their money and it was other people who lost everything. The way the stock market is played (it is a game, and nothing to do with business) this was a roaring success. Someone will now get a lot of cheap patents, so hopefully it's not all dead.
The way the stock market is played (it is a game, and nothing to do with business) this was a roaring success
I've always believed that there's a strong case to be had for share holdings to be subject to a lengthy minimum duration of ownership before they can be sold.
I don't know how it would/could ever work out in practice, but it would be nice if we could bring the practice of share ownership more in line with the actual concept of being a part owner of the company, rather than shares just being seen as chips on a roulette table for short-term instant-win gambling.
The industry is going through a radical transformation, so the weakest fall first. As said before: all-flash vendors have no long-term future - http://www.theregister.co.uk/2016/02/19/boyan_ivanov_storpool_ceo_interview/
Next year we'll see more vendors close or get acquired (although by whom, most incumbents struggle themselves).
Boyan I. @ StorPool
To be fair, the CFO is probably the one guy you need to stick around if you are going Ch 11.... I'm guessing that was a upfront payment for his services as he is unlikely to get his salary or bonus after filing....
(edit - someone else wrote a similar comment, but didn't reply to this thread....)
"So why in hell did they pay a 150k retention bonus to CFO Cory Sindelar two weeks ago to keep him onboard into 2017"
They needed someone knowledgeable to fill out the Chapter 11 paperwork. Sindelar clearly knew this was coming and played his position well. Too bad the other employees didn't have the same leverage.
Exactly what are they selling and who will buy what ? The junked offices ? old lab equipment ? spare parts ? old IP that really isn't relevant ? angry customer list ? I am assuming they still have support revenue for existing installations ; how much is that worth ?
Can I show up on Jan 20 and poke through the pile of old computers stacked in the loading docks ? Bring cash I guess.