Violin Memory, the maker of computer data storage products, has replaced Don Basile as the CEO following the company's weak IPO release and disappointing quarterly results. Howard A. Bain III, the chairman of the company's board, has been appointed as the interim CEO.
The company went public in September this year with its stock shares listed on the New York Stock Exchange under the symbol VMEM. The company estimated to raise about $160 million from its shares priced at $9 each. The company's shares opened for trading at $7.5 and also managed to raise $162 million. However, Violin Memory's share price dropped by 22 percent on the very first day of trading.
On November 21 this year, the company announced its financial results for the quarter ended October 31 and the company revealed $34 million loss on revenue of about $28 million, or 85 cents a share. The shares of the company took another beating by around 46 percent as analysts had predicted 44 cent loss per share on revenue of $32 million. So far, the company's shares have lost around 70 percent of its value since the IPO and quarterly results announcement.
Bain, the recently appointed interim CEO, has been the chairman of the company since August this year and a director since October 2012.
"Violin Memory is focused on maintaining the operational flexibility to manage through the emerging dynamics of our industry, with financial resources on hand to achieve our objectives. While our fundamental strategy to drive growth remains unchanged, we will pursue additional tactical initiatives to improve the overall cost efficiency of the business and improve sales leverage through our partner and indirect channels. We have a robust product roadmap in place that positions us well to take advantage of the transition to a memory-based data center and build an even stronger future for all of our stakeholders," Bain said.
"Having served as Chairman of the Board, I am well aware of the many opportunities ahead and look forward to engaging with the Company's customers, team members and shareholders in the coming weeks. Most importantly, I am confident in our team's ability to execute and provide our customers with the high level of support and service that they have come to expect from us," added Bain.
Basile had been the CEO of the company since 2009 and led Violin Memory in the flash memory business. To compete successfully with rivals, the company also developed faster and more expensive storage products. However, the company's disappointing performance has led to the departure of Basile from his CEO role.
Violin Memory's share went up slightly and traded at around $3.23 following Basile's exit news.
On Tuesday morning, the company's shares were trading at $3.23, down 1.22 percent from Monday's closing, at the NYSE.
