Tag: Tintri

Storage vendor Tintri is laying off 200 members of its workforce in a bid to save cash, however the outfit is still likely to go tits up  by 30 June.

In a filing to the SEC, Tintri revealed that the terminations were “ongoing” but that it expects to complete the process soon, leaving a skeleton staff of 40 to 50 to keep it afloat.

CEO Thomas Barton left the office last week, and Tom Cashman, Tintri’s VP of worldwide sales and alliances, was also laid off.

Tintri is currently $15.4 million in debt with Silicon Valley Bank and owes $50 million to TriplePoint Capital.

In its filing, the vendor said: “Tintri has very limited cash resources remaining and currently does not expect to have sufficient liquidity to continue its operations beyond 30 June 2018.”

It is expected to be delisted soon and then the the company’s common stock may trade only on the over-the-counter market, or not at all.

Tintri is exploring the possibility of a takeover as its financial situation is “likely” to kill it off.

The storage vendor has suffered since it listed on the NASDAQ market last year. It announced a wave of job cuts in September. Things have not got much better, and Tintri is in breach of covenants relating to its credit facilities with lenders. Tintri is currently $15.4 million in debt with the banks and owes $50 million to TriplePoint Capital.

Tintri said it is not in a position to repay the money it owes if its lenders declare an event of default.

In a statement to shareholders Tintri said: “Based on the company’s current cash projections, and regardless of whether its lenders were to choose to accelerate the repayment of the company’s indebtedness under its credit facilities, the company likely does not have sufficient liquidity to continue its operations beyond 30 June 2018.

“The company continues to evaluate its strategic options, including a sale of the company.

“Even if the company is able to secure a strategic transaction, there is a significant possibility that the company may file for bankruptcy protection, which could result in a complete loss of shareholders’ investment.”

The vendor’s revenue in Q1 was $22 million, alongside a loss of $1.14 per share.

Tintri could not publish the usual depth of information seen in quarterly results because some people involved in preparing the report have left the organisation, it said.

The vendor’s share price has been at under $1 since 22 May. If a company’s share price has been under this value for 30 consecutive days the shares can be de-listed from the NASDAQ market.

While Tintri has refused to say much about its company wide decimation plans, it appears that some top managers are already clearing out their desks and sticking their personal positions into old photocopy paper boxes.

The vendor said last week that it would be cutting over 10 per cent of its workforce by the end of October to “drive efficiencies” in its sales organisation. The cuts were understood to be worldwide.

Tintri’s former senior channel manager Mark Hughes has since confirmed his departure in a LinkedIn post.

The vendor first confirmed the redundancies in a filing with the US Securities and Exchanges Commission last week, revealing that the board of directors approved the cuts on 18 September.

“The restructuring is part of an overall plan to drive efficiencies in the company’s sale organisation and other business units,” the filing stated.

Tintri’s went public earlier this year and its share price tanked by 50 percent since its first day of trading.

In its most recent quarterly filing Tintri recorded a 27 percent year-on-year revenue jump for the three months ending 31 July, up to $34.9 million. Its operating loss however doubled to $49.1 million.

Tintri shareholders are furious and several law firms have announced plans to take action against Tintri on behalf of shareholders over “possible violations of federal securities laws”.

Wolf Haldenstein Adler Freeman & Herz have filed a class action which alleges that Tintri made false and/or misleading statements and/or failed to disclose material information in connection with its IPO.

On September 7, 2017, Tintri announced its second quarter results, reporting revenue at the low end of analysts’ expectations and weaker than expected third quarter guidance. The Company projected revenues to increase just slightly quarter over quarter to $36-$37 million compared to expectations of $42.5 million, the lawyers said.  Following this news, Tintri’s stock price dropped over 31 percent to close at $4.55 per share on September 8, 2017, which caused investors harm.

Tintri has moved to stress importance of its channel after setting out plans for its imminent initial public offering (IPO)

The storage virtualisation outfit is looking to raise $100 million by offering 8.7 million shares priced between $10.50 and $12.50.

In documents filed with the American Securities and Exchange Commission, Tintri said its own success relies heavily on its partner community.

Tintri said that channel sales accounted for 89 percent of all revenue in its last fiscal year, in which the vendor reported losses of $105.8 million.

“If our third-party channel partners fail to perform, our ability to sell and distribute our solution will be limited, and our operating results will be adversely affected,” the document stated.

“We depend on channel partners and distributors for a substantial majority of our sales. We also depend on our channel partners to manage the customer sales process and to generate sales opportunities.

“If our channel partners are unsuccessful in fulfilling our sales, managing the sales process or selling our solution, or we can’t enter into arrangements with or retain a sufficient high-quality, motivated partners in each of our sales regions, our ability to sell our solution will be adversely affected.”

Tintri has had a series of significant funding rounds since its inception in 2008, the largest being a $125 million Series F round in 2015.