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What's in Store for Violin Memory (VMEM) in Q2 Earnings?
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Violin Memory, Inc. is expected to report second-quarter fiscal 2017 results on Aug 25. Violin Memory develops and supplies memory-based storage systems to offer storage performance that complements high-speed applications, servers and networks worldwide.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Violin Memory’s first quarter revenues were down to $9.7 million from $10.9 million in the prior quarter and $12.1 million in the year-ago quarter. With product revenues remaining flat, the decline was mainly due to lower maintenance service revenues. The company’s European theatre hindered the achievement of growth targets.
However, the first quarter reflected stabilization in a number of areas. Through the quarter, Violin’s Flash Storage Platform continued to gain traction. Account deals grew in the APC theater also achieved considerable progress within the Fortune 100 accounts in North America.
In the first quarter, the Fortune 100 wins were a remarkable success. In addition, Violin Memory achieved seven other FSP accounts, thereby opening up opportunities for faster growth.
Violin Memory has also achieved considerable number of wins in Korea, Russia and Turkey where the network effect (one win aiding in winning the next) is working well.
The company believes that Fortune 100 rollouts will play a significant role in boosting its US and EMEA markets. It expects a boost in its revenues, going forward, driven by a faster-than-expected market transition from disk to flash.
The company is confident about delivering shareholder value in the long run and believes that it has positioned its products and services in accordance with market opportunity.
The company’s focus on Global 1000 and Fortune 500 is expected to create greater value for shareholders. In order to enable customers to integrate premise infrastructure and the cloud, Violin Memory is developing its Concerto operating system to be rolled out later this year.
Also, the company has managed a new software OEM relationship in the first quarter and the existing ones continue to move forward.
In the second quarter, the company expects revenues in the range of $11 million to $13 million. Its largest Fortune franchises are expected to contribute $6 million to $8 million. The company is trying to strengthen its cash position mainly through expense control.
Here are some companies that can be considered as our model shows that they have the right combination of a positive Earnings ESP and a favorable Zacks Rank to post an earnings beat in their upcoming releases:
Barracuda Networks, Inc. with an Earnings ESP of +66.67% and a Zacks Rank #1 (Strong Buy).
Stoneridge Inc. (SRI - Free Report) with an Earnings ESP of +5.71% and Zacks Rank #1.
Cognex Corporation (CGNX - Free Report) with an Earnings ESP of +2.13% and Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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What's in Store for Violin Memory (VMEM) in Q2 Earnings?
Violin Memory, Inc. is expected to report second-quarter fiscal 2017 results on Aug 25. Violin Memory develops and supplies memory-based storage systems to offer storage performance that complements high-speed applications, servers and networks worldwide.
Let’s see how things are shaping up for this announcement.
Factors to Consider
Violin Memory’s first quarter revenues were down to $9.7 million from $10.9 million in the prior quarter and $12.1 million in the year-ago quarter. With product revenues remaining flat, the decline was mainly due to lower maintenance service revenues. The company’s European theatre hindered the achievement of growth targets.
However, the first quarter reflected stabilization in a number of areas. Through the quarter, Violin’s Flash Storage Platform continued to gain traction. Account deals grew in the APC theater also achieved considerable progress within the Fortune 100 accounts in North America.
In the first quarter, the Fortune 100 wins were a remarkable success. In addition, Violin Memory achieved seven other FSP accounts, thereby opening up opportunities for faster growth.
Violin Memory has also achieved considerable number of wins in Korea, Russia and Turkey where the network effect (one win aiding in winning the next) is working well.
The company believes that Fortune 100 rollouts will play a significant role in boosting its US and EMEA markets. It expects a boost in its revenues, going forward, driven by a faster-than-expected market transition from disk to flash.
The company is confident about delivering shareholder value in the long run and believes that it has positioned its products and services in accordance with market opportunity.
The company’s focus on Global 1000 and Fortune 500 is expected to create greater value for shareholders. In order to enable customers to integrate premise infrastructure and the cloud, Violin Memory is developing its Concerto operating system to be rolled out later this year.
Also, the company has managed a new software OEM relationship in the first quarter and the existing ones continue to move forward.
In the second quarter, the company expects revenues in the range of $11 million to $13 million. Its largest Fortune franchises are expected to contribute $6 million to $8 million. The company is trying to strengthen its cash position mainly through expense control.
VIOLIN MEMORY Price and EPS Surprise
VIOLIN MEMORY Price and EPS Surprise | VIOLIN MEMORY Quote
Stocks That Warrant a Look
Here are some companies that can be considered as our model shows that they have the right combination of a positive Earnings ESP and a favorable Zacks Rank to post an earnings beat in their upcoming releases:
Barracuda Networks, Inc. with an Earnings ESP of +66.67% and a Zacks Rank #1 (Strong Buy).
Stoneridge Inc. (SRI - Free Report) with an Earnings ESP of +5.71% and Zacks Rank #1.
Cognex Corporation (CGNX - Free Report) with an Earnings ESP of +2.13% and Zacks Rank #1.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>