Fusion-io (FIO), STEC (STEC), Others Active on Violin Memory (VMEM) IPO Filing
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Names like Fusion-io (NYSE: FIO), OCZ Technology (Nasdaq: OCZ), and STEC (Nasdaq: STEC) are lower as another memory player plans to enter the public market.
Monday, flash-memory storage provider Violin Memory (NYSE: VMEM) filed for a $172.5 million Initial Public Offering (IPO). But, is there room for one more?
Formed in 2005, Violin Memory said that it only began recording significant revenue growth in first-quarter 2012. Operating expenses have hampered the company and, despite sales growing from $11.4 million to $73.8 million over the last three years, net loss has widened from $16.7 million to $109.1 million. Net loss for the first half of 2013 is already at $59.2 million.
Storage has become a tricky arena to profit in. Advancements in technology (including overall storage size and material quality) has made it difficult for current companies to sell more product. In its own flash-storage array segment, Violin has been seeing more and more pressure from the likes of Fusion-io, not to mention bigger players like EMC (NYSE: EMC), NetApp (Nasdaq: NTAP), and IBM (NYSE: IBM).
Also of note, Violin lost a key reseller contract with Hewlett-Packard (NYSE: HPQ) last year, meaning that at least one chunk of its revenue stream is now absent.
With Fusion-io down some 52 percent from its IPO in June 2011, will Violin be the turnaround story the Street is looking for? Or, just another money-losing tech player?
Monday, flash-memory storage provider Violin Memory (NYSE: VMEM) filed for a $172.5 million Initial Public Offering (IPO). But, is there room for one more?
Formed in 2005, Violin Memory said that it only began recording significant revenue growth in first-quarter 2012. Operating expenses have hampered the company and, despite sales growing from $11.4 million to $73.8 million over the last three years, net loss has widened from $16.7 million to $109.1 million. Net loss for the first half of 2013 is already at $59.2 million.
Storage has become a tricky arena to profit in. Advancements in technology (including overall storage size and material quality) has made it difficult for current companies to sell more product. In its own flash-storage array segment, Violin has been seeing more and more pressure from the likes of Fusion-io, not to mention bigger players like EMC (NYSE: EMC), NetApp (Nasdaq: NTAP), and IBM (NYSE: IBM).
Also of note, Violin lost a key reseller contract with Hewlett-Packard (NYSE: HPQ) last year, meaning that at least one chunk of its revenue stream is now absent.
With Fusion-io down some 52 percent from its IPO in June 2011, will Violin be the turnaround story the Street is looking for? Or, just another money-losing tech player?
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