Violin Memory sees losses widen in Q2

Net losses at $24.4m for US flash player

US flash player Violin Memory has seen its losses widen in its Q2 2016, as it admits its strategy has been "challenging and not as seamless as we would like".

For the three months to 31 July, Violin's net loss was $24.4m (£15.9m), compared with $8.4m in the same quarter last year, on sales of $15.3m, which were down 17.7 per cent over the same period.

Kevin DeNuccio, Violin's chief executive, said the firm's single-product strategy has created difficulties.

"Over the past two quarters, Violin Memory has been executing an aggressive sweeping shift of its primary market and products to capitalise on the massive technology transition from disk to flash that is now taking place in large enterprises and within cloud infrastructure which represents a $15bn annual market opportunity," he said on an earnings call transcribed by Seeking Alpha.

"As a single-product company, executing a strategic shift of this magnitude has been challenging and not as seamless as we would like."

But despite the problems Violin has encountered, DeNuccio was positive about the future outlook.

"However, with renewed growth in the second quarter, we believe the company is now on the other side of these transitional challenges and we're looking forward to increasing our momentum in the coming quarters," he said.