January 15th, 2016 by Adam Armstrong
More Market Woes For Violin Memory
Violin Memory makes a high performing all-flash array, in fact some of the best performance in the industry as we’ve seen with the Windows Array. However since going public in 2013, Violin’s stock has struggled. Starting off at $9 per share the stock has been floating under a dollar the last couple of months just popping over the dollar mark a few times. And now it looks as though the company could be delisted off of the NYSE due to its low common stock price.
In the past few weeks Violin’s stock has taken a further beating. It missed its third quarter earnings that caused the stock to drop over 25%. And one of its investment companies, the Clinton group, has nominated 3 new board members in an effort to turn the company around. While none of this is good news it may be better than the notice Violin has received from the NYSE on January 8, 2016 informing them of that their stock can be delisted if it stays under $1.00 over a consecutive 30 trading-day period (NYSE Listed Company Manual section 802.01C Price Criteria for Capital or Common Stock).
Violin has responded that it intends to restore compliance in order to continue its listing on the NYSE. The same section cited above, 802.01C, states that the company must bring its share price and average share price back above $1.00 by six months following receipt of the notification. Violin states that they do not feel the stock price reflects the true value of their company. They also state that, with shareholder approval, they may take action such as a reverse split in order to get back in compliance with NYSE.
Violin’s future is uncertain at the moment but looking a bit bleak. As Violin releases a statement to address the notification of delisting their stock fell to as low as $0.65 per share, its all time low.