Rougly four months after going public, Violin Memory Inc. (NYSE: VMEM), which recently restructured its workforce, is looking into strategic alternatives for one of its business lines.
On Feb. 20, the company announced it had laid off more than 20 percent of employees as part of a strategic restructuring that included the sales, marketing and engineering businesses. Now, the company has 380 employees.
On Feb. 3, Violin announced the hire of Kevin DeNuccio as CEO, who will be paid $750,000 annually and eligible for a bonus of the same amount. DeNuccio previously led Redback Networks, a telecommunications equipment company, through a restructuring and turnaround process. Redback was acquired by Ericsson (Nasdaq: ERIC) for $2.1 billion in 2007.
The company also announced the plan to look into strategic alternatives for the peripheral component interconnect express (PCIe) flash memory card business, which should reduce operating expenses by another $10 million annually. The company announced at the end of 2013 that it expects to achieve profitability in 2015.
Violin, headquartered in Santa Clara, Calif., develops memory-based data storage services, including flash-based storage systems. The company, in a Dec. 9 filing with the U.S. Securities and Exchange Commission, indicated a substantial doubt about its ability to continue as a going concern, or without the threat of liquidation, because it has not generated cash from operations, has recurred losses and had a $296 million deficit as of Oct. 31.
In January 2013, the company acquired GridIron Systems, which develops technology used for online transaction processing, data warehouses, virtualization and data analytics.
The company has been public since October, raising $162 million in an initial public offering.
Violin expects to continue to expend substantial funds on engineering, research and development projects. The company says it may not have enough capital to finance future operations, and may need to consider raising money through equity markets, debt markets or other financing arrangements.
For last week's edition of Turnaround Tuesday, see "Viggle Plans to Raise Cash to Fund Operations."
For more struggling companies, see Mergers & Acquisitions Distressed Company Watch List.