Violin faces second NYSE delisting threat

Needs to get capitalisation back up to compliance levels

Violin Memory is facing a second NYSE delisting threat.

The company makes all-flash arrays and its revenues have been so low for so long as to result in a falling share price.

The NYSE, which lists Violin’s shares, told it by letter on April 27 that it was facing delisting because its average capitalisation over a 30-day period was below the $50m minimum level.

Violin’s capitalisation is currently $31.32mn. The company will tell the NYSE with 45 days of the letter’s receipt how it will regain compliance within an 18-month period, during which its stock will continue to be listed, if its plan is accepted by the NYSE.

How it will do this is going to be interesting, as it will involve, we think, producing better trading results which should, hopefully, cause its share price to rise, and hence its market capitalisation.

In mid-January the NYSE threatened Violin with delisting because its stock price had been less than $1.00 on average for 30 days. Violin said it would get the stock price back up up above the $1.00 level. It’s currently at $0.31 and has been less than $1.00 continuously since December 29, 2015. ®

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