NEW YORK (TheStreet) -- Shares of Violin Memory (VMEM) were falling 12.7% to $2.76 after-hours Tuesday after the data storage devices company missed analysts' estimates for earnings and revenue in the first quarter of fiscal 2016.
Violin Memory reported a loss of 22 cents a share for the first quarter, below analysts' estimates of a loss of 20 cents a share for the quarter. Revenue fell 33.3% year over year to $12.1 million for the quarter, missing analysts' estimates of $21.43 million.
"Our first quarter results were unsatisfactory as we continued to experience the short-term effects of transitioning customers to our new Flash Storage Platform solutions," President and CEO Kevin DeNuccio said in a statement. "We believe that this transitional headwind is now beginning to subside, and we are off to the strongest quarterly start to date with recognizable revenue already approaching 90% of our first quarter total."
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 a number of negative factors, 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 generally disappointing historical performance in the stock itself and generally high debt management risk."