Will Violin Memory Inc (NYSE:VMEM) Realize Its Potential?

[[tagnumber 0]][[tagnumber 1]]Ever since Violin Memory Inc (NYSE:VMEM) announced its most recent quarterly earnings report on June 2, 2015, its stock has been on a continual downslide. As a result, you could now get a stake in VMEM at $2.12 per share, or 34% cheaper than the stock‘s market value in May.[[tagnumber 2]] [[tagnumber 0]]Considering the stock‘s 52–week high of $5.55 reached in late–November 2014, Violin Memory has certainly seen better times on the chart. Yet, the earnings report covering the quarter ended Apr. 30, 2015 revealed $12 million in revenue, down 40% from the preceding quarter, while the company‘s inventory increased by a whopping 50% over the same period, which could potentially be due to lagging sales. This resulted in a net loss of some $26 million, which, albeit a bit smaller than the one generated in the same quarter last yer, is still nothing to write home about. And while the company did manage to optimize its cost of goods sold, this does not seem to have impressed investors that much so far as the earnings number still missed analysts‘ expectations.[[tagnumber 2]] [[tagnumber 0]]From a technical viewpoint, VMEM has now entered the oversold area, which raises prospects for a future rebound.[[tagnumber 2]] [[tagnumber 0]][[tagnumber 8]]Incorporated in 2005, Violin Memory engages in the development of flash storage solutions. It also had a full PCIe Flash Memory Card product line before selling it last July at a profit in excess of $17 million. At present, the company is solely focused on its All Flash Array market.[[tagnumber 2]] [[tagnumber 0]]Even though recent news hint at new deals for the company, their impact on the charts has yet to be seen. This suggests that either VMEM managers need to do more to get investors‘ attention, or the growing popularity of the cloud technology might be the main factor in play.[[tagnumber 2]] [[tagnumber 0]]We have yet to see how VMEM shares will perform in the coming months. The company seems to possess enough funds to ensure safe operations in the short term, as well as the product, so the potential is there. Whether this potential will be fully realized, however, is a question that will keep VMEM supporters focused on the stock in the future to come.[[tagnumber 2]]