Violin Memory (VMEM) Misses Q3 EPS by 1c; Will Expand Strategic Alternatives

Violin Memory (NYSE: VMEM) reported Q3 EPS of ($0.19), $0.01 worse than the analyst estimate of ($0.18). Revenue for the quarter came in at $12.5 million versus the consensus estimate of $17.23 million.

"Our strategic shift and product line transition to become a market leader in flash-based primary storage for enterprises continues to create short-term challenges in achieving predictable, consistent growth. However, we believe we are headed in the right direction overall and that our opportunity continues to be extremely attractive," said Kevin DeNuccio, president and chief executive officer, Violin Memory.

The Company also announced today that its Board of Directors has authorized the exploration of strategic alternatives to enhance shareholder value and has retained the services of an investment banking firm to assist with the evaluation process. There is no set timetable for completion of this process and there is no assurance given that the process will result in the consummation of any transaction. The Company does not intend to provide additional information until such time that the Board of Directors approves a specific alternative or the process is otherwise concluded.

"Our stock price remains at a level that we do not believe reflects the true value of our business and developed technology. As a management team, we are committed to act in the best interests of our shareholders, including considering alternate methods of enhancing shareholder value," said DeNuccio.

For earnings history and earnings-related data on Violin Memory (VMEM) click here.

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