Flash storage company Violin Memory CEO Don Basile has been let go from the company due to poor quarterly results and a less-than-stellar IPO. Howard A. Bain III has been named as the CEO of Violin Memory. Violin Memory went public on September 27th at $9 per share. It opened at $7.50 and raised $162 million, but the company’s shares have dropped almost 70% since then. Violin Memory reported a quarterly loss that was twice as bad as expected last month too. The company announced $28.3 million in sales at 85 cents a share compared to a 44 cent loss on $32 million in revenues that Wall Street was expecting.
Violin Memory raised over $96 million in a pre-IPO round of funding in February. Violin raised $50 million a year before that. Altogether, Violin raised over $180 million in funding over three years. Basile was granted 2.5 million fully-vested Violin shares worth around $6.8 million for getting the company to an IPO.
Howard A. Bain III will be the interim CEO at Violin effective immediately. Bain was already the chairman of the Violin Memory board of directors. The Violin Memory Board of Directors has conducted a search process and has retained an executive search firm to find a permanent CEO.
?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,? stated Bain. ?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.?