Tintri Is Running Out Of Cash & Possibly Out Of Time

The “VM-aware” storage company, Tintri Inc., it not doing as well as it hoped. It released its first quarter fiscal 2019 financial results this morning and things are looking down. Form a liquidity standpoint; the company doesn’t seem to have enough cash to go beyond the end of the month.

The “VM-aware” storage company, Tintri Inc., it not doing as well as it hoped. It released its first quarter fiscal 2019 financial results this morning and things are looking down. Form a liquidity standpoint; the company doesn’t seem to have enough cash to go beyond the end of the month.

As we’ve said previously, founded in 2008 by Kieran Harty (formally of VMware), Tintri focuses on VM-aware storage built specifically for virtualized applications. The trend of virtualization seems as though it would be beneficial to Tintri as virtualized workloads have grown from roughly 2% in 2005 to over 80% today. Tintri also enables users to set their QoS for individual VMs, vDisks, and containers. This QoS allows allocation of both minimum and maximum performance to the above-mentioned resources.  

Tintri filed to go public at roughly this same time last year. Its IPO was $7.27/share, which was the highest the stock ever made it before dropping nearly $7/share today (hoevering around $0.30). The company’s stock has been under $1 since May 22 giving it roughly a week to get above $1 or risk being delisted. Tintri states that it is holding aggregate cash and cash equivalents of $30.9 million and $11.5 million, respectively. However, it has $15.4 million of principal indebtedness outstanding under its line of credit with Silicon Valley Bank, or SVB, and $50 million under its credit facility with TriplePoint Capital, or TriplePoint. It also has $25 million in principal amount of subordinated indebtedness outstanding in addition to other liabilities. The numbers for the quarter are expected to be revenue of $22 million and GAAP net loss per share of $1.14. 

Tintri has a few options. One they have floated for a bit is selling the company. However, the above, plus selling due to the above, isn’t going to win it any new customers nor will it thrill existing customers and suppliers. This will only compound the company’s issues sending it even lower. 

The company gave no guidance for its upcoming quarter. Overall it is not looking good for Tintri and they may be the next tech company to go down the drains. Most likely we will know within a month if they are going to sink or float. 

Tintri

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