Violin Memory: Fiscal 1Q15 Financial Results

Violin Memory, Inc. announced financial results for the first fiscal quarter ended April 30, 2014.

First Quarter Fiscal 2015 Financial Highlights

• revenue of $18.1 million
• GAAP gross margin of 53%
• non-GAAP gross margin of 52%
• GAAP net loss of $0.35 per share
• non-GAAP net loss of $0.25 per share

“In the first quarter, we made significant progress on our strategic and operational priorities, creating a more stable foundation and balanced go-to-market model that should serve us well going forward,” said Kevin DeNuccio, president and CEO. “Our strong focus on these priorities contributed to us meeting the consensus earnings estimate despite our revenue being below the consensus revenue estimate.”

“Looking forward, we anticipate revenue growth in the second half of this fiscal year as our new products, strategic relationships and more efficient go-to-market model are expected to contribute meaningfully to our results,” added DeNuccio.

First Quarter Fiscal 2015 Financial Results
First quarter fiscal 2015 revenue was $18.1 million, 27% lower year over year compared to $24.8 million recorded in the first quarter of fiscal 2014, and 35% lower compared to $28.0 million reported in the fourth quarter of fiscal 2014.

First quarter fiscal 2015 GAAP gross margin was 53%, reflecting a $0.5 million recovery associated with the disposal of PCIe card components, and compares to 41% recorded in the first quarter of fiscal 2014, and to 22% reported in fourth quarter of fiscal 2014, which reflected a $9.2 million charge associated with PCIe card inventory.

First quarter fiscal 2015 non-GAAP gross margin was 52%, compared to 42% recorded in the first quarter of fiscal 2014, and compared to 56% reported in fourth quarter of fiscal 2014.

First quarter fiscal 2015 GAAP net loss was $30.1 million, or $0.35 per share, compared to first quarter fiscal 2014 GAAP net loss of $28.5 million, or $1.86 per share. First quarter fiscal 2015 GAAP net loss compares to fourth quarter fiscal 2014 GAAP net loss of $56.5 million, or $0.69 per share.

First quarter fiscal 2015 GAAP net loss included a net charge of $9.0 million from special items consisting primarily of stock-based compensation expense of $7.6 million, restructuring charges of $1.8 million and amortization of acquired intangibles of $0.1 million, offset by the PCIe component recovery of $0.5 million.

Excluding special items, first quarter fiscal 2015 non-GAAP net loss was $21.1 million, or $0.25 per share, compared to first quarter fiscal 2014 non-GAAP net loss of $23.6 million, or $1.54 per share. First quarter fiscal 2015 non-GAAP results compare to fourth quarter fiscal 2014 non-GAAP net loss of $23.5 million, or $0.28 per share.

Fiscal Year 2015 Business Outlook

• non-GAAP gross margin of 52% to 56%
• non-GAAP operating expenses of $115 million to $125 million