NEW YORK (TheStreet) -- Shares of Violin Memory (VMEM) were plummeting by 27.98% to $1.75 on Friday morning, after the data storage company missed analysts' estimates for earnings in the fiscal 2016 second quarter and guided below estimates for the fiscal third quarter.

Violin Memory reported revenue of $15.3 million for the fiscal second quarter, an 18% decrease from the year-ago quarter, and below analysts' estimates of $18.07 million. The company reported a loss of 19 cents a share for the second quarter, compared to analysts' estimates of a loss of 20 cents a share.

"While our top-line result came in below prior guidance, our continued strong focus on financial management contributed to a bottom line result better than the consensus view," CEO Kevin DeNuccio said in a statement.

Looking to the fiscal third quarter Violin Memory said it expects to report revenue of $16 million to $20 million, below analysts' estimates of $21.13 million for the quarter.

About 1.6 million shares of Violin Memory were traded by 10:07 a.m. Friday, above the company's average trading volume of about 1.3 million shares a day.

TheStreet Recommends

Separately, TheStreet Ratings team rates VIOLIN MEMORY INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:

"We rate VIOLIN MEMORY INC (VMEM) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk."

You can view the full analysis from the report here: VMEM Ratings Report

VMEM data by YCharts

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