Violin Memory, Inc. (OTCQX: VMEM) is a developer and supplier of memory storage systems, flash storage, and other software technologies. Shares of the technology company are diving 60% on Wednesday, December 14, 2016. Over the past three months, Violin Memory, Inc. has seen average daily volume of 317,076 shares. However, volume of 1.75 million shares or dollar volume of $122,500, has already exchanged hands through early trading on Wednesday.

Shares of Violin Memory, Inc. are diving Wednesday, after the company announced that it will voluntarily enter into chapter 11 bankruptcy. The company hopes to reorganize and will hold an auction in early January 2017 for divested assets. Here is the full press release detailing of the bankruptcy:

Violin Memory, Inc. Press Release:

SANTA CLARA, CA–(Marketwired – December 14, 2016) – Violin Memory®, Inc. (VMEM) announced today that it has commenced a process to streamline its operations and balance sheet, while simultaneously pursuing a sale of its business to a buyer committed to supporting its core customer base.

To facilitate this restructuring, Violin Memory has filed a voluntary petition for reorganization under chapter 11 of the U.S. Bankruptcy Code in the Bankruptcy Court for the District of Delaware, and is seeking to hold an auction in early January for the business.

Violin Memory, founded in 2005, is credited with being the creator of the flash storage market. Over the past eleven years, Violin Memory has built a strong franchise through ongoing innovation by serving the needs of the most exacting enterprises. Violin Memory continues to have core strengths that it believes can lead to value creation, including leveraging the company’s:

  • Annual recurring service revenue
  • Broad patent portfolio
    • 58 US Patents/24 pending
    • 64 Foreign Patents/38 pending
  • 58 US Patents/24 pending
  • 64 Foreign Patents/38 pending
  • Single O/S for public, private and hybrid cloud environments
  • Proven integrated hardware and software solutions
  • Customer base that includes some of the largest enterprises in the world

Kevin A. DeNuccio, Violin Memory’s President and CEO stated: “We are taking this action, which should conclude by the end of January 2017, to bolster Violin’s ability to serve the needs of its customers. Violin intends to continue to sell solutions to customers and prospects as well as service and support customers during this restructuring.”

Additional Information:

If you have questions about the chapter 11 proceeding, please call (855) 934-8766 (domestic) or +1 (917) 877‐5963 (international), email VMEMinfo@primeclerk.com, or visit: https://cases.primeclerk.com/VMEM.

About Violin Memory, Inc.:

Violin Memory, the disruptive innovator in All Flash Arrays, is revolutionizing how businesses operate by enabling storage technology to Be Instrumental to their company by changing the SLAs and capabilities of private, hybrid and public cloud environments. The Flash Storage Platform™, powered by Concerto OS™, a fully integrated storage operating system, is the industry leader in the combination of every significant category measured in all flash arrays: low latency, affordability, density, scalability and performance. With tightly integrated data services, the Violin Flash Storage Platform provides a unique combination of data protection, business continuity, and data reduction services onto a flexible, uniquely scalable solution called Scale Smart™, delivering significant CAPEX and OPEX savings. Founded in 2005, Violin Memory is headquartered in Santa Clara, California. For more information, visit www.violin-memory.com.

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