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Violin Memory posts bigger-than-expected loss, shares fall
November 21, 2013 / 10:21 PM / 4 years ago

Violin Memory posts bigger-than-expected loss, shares fall

(Reuters) - Flash storage provider Violin Memory VMEM.N posted a bigger-than-expected quarterly loss, hurt by higher research and marketing costs for its new products, sending its shares down 27 percent in trading after the bell.

The company’s costs jumped 41 percent to $48.4 million in the third quarter ended October 31.

Net loss increased to $34.1 million from $25.4 million a year earlier. The company, which went public in September, reported a loss of 85 cents per share.

Excluding items, the company posted a loss of 63 cents per share.

Revenue rose 37 percent to $28.3 million.

Analysts on average had expected a loss of 44 cents, on revenue of $31.7 million, according to Thomson Reuters I/B/E/S.

Violin Memory was co-founded by Harvard University graduate Jon Bennett in 2005 and is headed by former Fusion-io Inc FIO.N Chief Executive Donald Basile.

It is backed by Japan’s Toshiba Corp (6502.T), which holds an 11.2 percent stake in the company.

Violin Memory shares fell to $4.40 in post-market trading, after closing at $6 on the Nasdaq on Thursday.

Reporting by Neha Alawadhi in Bangalore; Editing by Saumyadeb Chakrabarty

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