Violin Memory: Fiscal 3Q14 Financial Results

Violin Memory, Inc. announced financial results for the third fiscal quarter ended October 31, 2013.

Third Quarter Fiscal 2014 Financial Highlights

• Record revenue of $28.3 million, a year-over-year increase of 37% compared to $20.6 million in the prior year period.
• GAAP gross profit of $15.4 million, resulting in GAAP gross margin of 54% compared to 43% for the year ago period. Non-GAAP gross profit was $15.6 million, resulting in non-GAAP gross margin of 55% compared to non-GAAP gross margin of 45% for the year ago period.1
• GAAP net loss was $34.1 million, or $0.85 per share, compared to a net loss of $25.4 million, or $1.79 per share for the year ago period. Non-GAAP net loss was $25.4 million, or $0.63 per share, compared to a net loss of $21.3 million, or $1.50 per share for the year ago period.
• Completion of the company’s initial public offering and began trading on the New York Stock Exchange under the symbol VMEM. The company issued 18.0 million shares and realized net proceeds of $145.8 million.

“Enterprise data center storage is in the early stages of a major transformation to an Enterprise Memory based infrastructure, and Violin is at the forefront of accelerating this transformation,” said Don Basile, CEO, Violin Memory. “Our Enterprise Memory Software and Systems are enabling customers to achieve enormous gains in enterprise application performance, and significant cost savings resulting in new levels of productivity. During the quarter, we added 32 new customers and delivered record revenue and gross margins, even in a challenging Federal spending environment.”

Recent Business Highlights and Product Announcements

• Launch of the 6264 Flash Memory Array, the next generation of flash memory storage, combining flash controller technology with Toshiba’s latest generation of 19nm flash technology.
• Introduction of the Violin Symphony Data Management System, facilitating scale-out deployment of large numbers of memory arrays in the data center with a suite of next generation storage management features.
• Launch of the Maestro Memory Services Software Suite, transforming legacy data center storage to a memory-based infrastructure and bringing speed of memory to enterprise applications running on legacy storage while enabling a transition from disk to a memory-based data center.
• Optimization of Windows Server 2012 R2 for an all-memory persistent storage solution, setting new standards of performance and economics for large-scale Microsoft based enterprise cloud deployments.

For the fourth quarter of fiscal 2014, the company expects:

• Revenue in the range of $30 to $32 million.
• Non-GAAP gross margin in the range of 53% to 55%.
• Non-GAAP operating expenses in the range of $39 to $40 million.
• Denominator used to compute net loss per share ranging from 82.5 to 83.0 million shares.