Violin Memory Inc

CIK:0001407190|SEC Filings

Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Jul. 31, 2016

Jul. 31, 2015

Jul. 31, 2016

Jul. 31, 2015

Revenue:

Product revenue

$ 2,063

$ 9,847

$ 6,220

$ 16,670

Service revenue

5,440

5,456

10,996

10,734

Total revenue

7,503

15,303

17,216

27,404

Cost of revenue:

Cost of product revenue

^[1]

4,764

5,872

7,886

10,102

Cost of service revenue

^[1]

2,533

2,831

5,247

5,552

Total cost of revenue

7,297

8,703

13,133

15,654

Gross profit

206

6,600

4,083

11,750

Operating expenses:

Sales and marketing

^[1]

7,516

13,655

16,548

27,095

Research and development

^[1]

8,637

10,580

18,831

22,106

General and administrative

^[1]

3,236

4,708

6,648

9,859

Restructuring and other charges (recoveries)

(265)

1,470

Total operating expenses

19,124

28,943

43,497

59,060

Loss from operations

(18,918)

(22,343)

(39,414)

(47,310)

Other expense, net

(114)

(303)

(308)

(47)

Interest and other financing expense

(1,514)

(1,694)

(2,973)

(3,444)

Loss before income taxes

(20,546)

(24,340)

(42,695)

(50,801)

Income taxes

Net loss

$ (20,576)

$ (24,382)

$ (42,735)

$ (50,884)

Net loss per share of common stock, basic and diluted

$ (0.82)

$ (1.01)

$ (1.71)

$ (2.12)

Shares used in computing net loss per share of common stock, basic and diluted

25,061

24,147

24,919

24,011

[1]	Includes stock-based compensation expense as follows: Cost of product revenue $ 28 $ 270 $ 34 $ 521 Cost of service revenue 153 334 354 669 Sales and marketing 661 1,475 1,310 2,280 Research and development 1,181 1,977 3,341 3,955 General and administrative 1,091 1,902 2,130 3,794

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Cash flows from operating activities:
Net loss	$ (42,735)	$ (50,884)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,055	4,697
Accretion of debt issuance costs to interest expense	696	878
Loss on disposal of property and equipment	99
Provision for excess and obsolete inventory	2,940
Stock-based compensation	7,165	11,219
Changes in operating assets and liabilities, net:
Accounts receivable	2,741	9,338
Inventory	(1,812)	(2,496)
Other assets	2,743	2,058
Accounts payable	(1,297)	(5,597)
Accrued liabilities	(3,404)	(3,915)
Deferred revenue	(3,356)	(3,112)
Net cash used in operating activities	(32,165)	(37,814)
Cash flows from investing activities:
Purchase of property and equipment	(1,242)	(3,149)
Decrease (increase) in restricted cash	5,000	(7,700)
Purchase of investments		(41,139)
Proceeds from maturity of investments	29,780	34,915
Net cash provided by (used in) investing activities	33,538	(17,073)
Cash flows from financing activities:
Proceeds from line of credit	12,847	17,723
Repayment of line of credit	(19,172)	(14,000)
Proceeds from stock plans	87	955
Net cash provided by (used in) financing activities	(6,238)	4,678
Effect of exchange rates on cash and cash equivalents	81	228
Net decrease in cash and cash equivalents	(4,784)	(49,981)
Cash and cash equivalents at beginning of year	23,921	93,432
Cash and cash equivalents at end of period	19,137	43,451
Supplemental disclosure of other cash flow information:
Taxes paid	17	15
Interest paid	2,550	2,668
Supplemental disclosure of non-cash investing and financing activities:
Transfer/exchange of inventory to/for property and equipment	1,878	184
Payables outstanding related to purchases of long-term assets	$ 167	$ 391

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
Current assets:
Cash and cash equivalents	$ 19,137	$ 23,921
Restricted cash	5,000	10,000
Short-term investments	12,290	42,058
Accounts receivable, net	2,567	5,308
Inventory	9,794	12,001
Other current assets	1,417	4,170
Total current assets	50,205	97,458
Property and equipment, net	8,545	9,322
Other assets	5,460	6,067
Total assets	64,210	112,847
Current liabilities:
Line of credit	7,073	13,398
Accounts payable	2,162	3,747
Accrued liabilities	11,239	13,570
Deferred revenue	11,118	13,006
Total current liabilities	31,592	43,721
Convertible senior notes, net	118,089	117,464
Deferred revenue	4,771	6,239
Other long-term liabilities		275
Total liabilities	154,452	167,699
Commitments and contingencies (Note 8)
Stockholders' deficit:
Preferred stock, $0.0001 par value, 10,000 shares authorized as of July 31, 2016; no shares issued and outstanding as of July 31, 2016 and January 31, 2016
Common stock, $0.0001 par value, 250,000 shares authorized as of July 31, 2016; 25,165 and 24,660 shares issued and outstanding as of July 31, 2016 and January 31, 2016, respectively	3	3
Additional paid-in capital	512,533	505,281
Accumulated other comprehensive income	549	456
Accumulated deficit	(603,327)	(560,592)
Total stockholders' deficit	(90,242)	(54,852)
Total liabilities and stockholders' equity	$ 64,210	$ 112,847