SANTA CLARA, Calif.--(BUSINESS WIRE)--Violin Memory®, Inc., (NYSE:VMEM), a leader in persistent memory-based storage solutions, today announced a strategic restructuring plan focused on accelerating growth and increasing operating leverage. The Company’s plan includes a global reorganization of its sales, marketing and engineering functions designed to sharpen its focus on core segments of the flash-based storage market, drive greater efficiency and grow revenues by strengthening engagement of indirect channels.
In connection with the restructuring, the Company has implemented a workforce reduction that brings its current employment level to approximately 380 positions, which compares to 483 positions as of October 31, 2013. The Company has notified those affected by the reduction and has taken steps to ensure a smooth transition.
The Company also announced that its Board of Directors has authorized a review of strategic alternatives for its PCIe flash memory card business in order to focus on markets where Violin has proven technology leadership and significant growth opportunities. The Company anticipates it will complete the review and take any related actions by the end of its first fiscal quarter, resulting in an anticipated reduction of operating expenses of approximately $10 million on an annual basis.
“The market opportunity for flash-based storage infrastructure is accelerating, and the restructuring actions we are announcing today should further strengthen our ability to capitalize on this growing opportunity,” said Kevin DeNuccio, Violin Memory president and chief executive officer. “We remain focused on improving the overall cost efficiency of our business and building a strong future for our stakeholders.”
More information about the strategic restructuring plan will be provided during the Company’s fourth quarter and fiscal year 2014 financial results conference call on March 6, 2014.
About Violin Memory, Inc.
Violin Memory enables businesses to access real-time information by delivering memory-based storage solutions that close the compute storage gap. Named by Gartner Inc. as the 2012 market share leader in flash-based storage systems, Violin Memory brings storage performance in-line with demanding, high-speed applications, servers and networks at disk economics. Violin Memory solutions are optimized from the ground up to leverage the inherent capabilities of flash memory, enabling performance of memory at compelling economics for business-critical applications, virtualized environments and big data in enterprise data centers. Founded in 2005, Violin Memory is headquartered in Santa Clara, California. For more information, visit www.violin-memory.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the following: the results of Violin Memory’s restructuring plan relating to accelerating growth and increasing operating leverage; the results of Violin Memory’s reorganization of its sales, marketing and engineering functions to sharpen its focus on core segments of the flash-based storage market, drive greater efficiency and grow revenues by strengthening engagement of indirect channels; Violin Memory’s anticipation that it will complete the review of the PCIe flash memory card business and take any related actions by the end of its first fiscal quarter; the anticipated reduction of operating expenses of approximately $10 million on an annual basis; the acceleration of the market opportunity for flash-based storage infrastructure; and Violin Memory’s ability to capitalize on the market opportunity. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: Violin Memory’s history of large purchases by a limited number of customers; its limited operating history, particularly as a new public company; risks associated with a transition in executive leadership; its relationship with Toshiba as its sole supplier of flash-based memory; as well as general market, political, economic and business conditions. Additional risks and uncertainties that could affect Violin Memory’s financial results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in the company’s quarterly report on Form 10-Q, which was filed with the U.S. Securities and Exchange Commission, and is available on the Company’s investor relations website at investor.violin-memory.com and on the SEC’s website at www.sec.gov. All forward-looking statements in this press release are based on information available to the Company as of the date hereof, and Violin Memory does not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.
All Violin Memory news releases (financial, acquisitions, manufacturing, products, technology, etc.) are issued exclusively by Business Wire and are immediately thereafter posted on the company’s external website, www.violin-memory.com. Violin, Violin Memory and the Violin Memory logo are trademarks or registered trademarks of Violin Memory, Inc. in the U.S. and other countries. All other brand or product names used in this public announcement may be trademarks or registered trademarks of their respective owners.