Pacific Crest Securities Sees Execution Risks Remaining High For Violin Memory

In a report published Thursday, Pacific Crest Securities analyst Brent Bracelin reiterated a Sector Perform rating on Violin Memory VMEM. In the report, Pacific Crest Securities noted, “Revenue declined 30% y/y to $18.6 million, below the Street's conservative estimate of $19.2 million. Revenue continued to be pressured by the company's reorganization efforts. While all-flash product orders increased 11% sequentially, we note this growth was off the lowest product revenue base in seven quarters; on a year-over-year basis, product revenue posted a second consecutive quarter of 40%-plus decline. The cash balance fell again to $78 million this quarter from $87 million, and management surprisingly increased its opex guidance, citing its intent to increase spending on S&M near term.” Violin Memory closed on Wednesday at $4.19.