All-flash storage array vendor Tintri is facing investor lawsuits and is in the process of laying off over 10 percent of its workforce following its first quarterly financial report since going public.
At least 12 law firms announced investigations against Tintri or filings of securities actions between September 9 and September 20; these followed the company's quarterly results, reported September 7, that covered its second fiscal quarter of 2018, which ended July 31.
Tintri reported quarterly revenue of $34.9 million, up 27 percent over its second fiscal quarter 2017 revenue. The company also reported a GAAP net loss of $25.3 million, with was basically flat with the $25.7 million net loss it reported the previous year.
Before going public, Tintri's last round of financing, which closed in August of 2015, brought the company $125 million. That gave Tintri a total funding of $260 million. The company's cash and cash equivalents and short-term investments totaled $80.6 million as of July 31, up from $48 million as of January 31, the company said.
Tintri early this week sent an internal email from company Chairman and CEO Ken Klein, a copy of which was viewed by CRN, to employees about the need to take "the difficult action to reduce the size of our organization."
"While painful, this was done to align our cost structure with our growth – part of a commitment to our Board of Directors and Investors, and a means to stay on our planned path to profitability," Klein said in the email.
A Tintri spokesperson last night confirmed that the company is laying off over 10 percent of its workforce.
"On Sept 7, 2017, during its earnings call, Tintri committed to streamline its core business and reduce operating expenses. To support this initiative Tintri will be reducing headcount across a number of areas of the business through September 2017. This figure is a little more than 10% of the company’s global workforce," a company spokesperson wrote in an email to CRN.
Tintri declined to discuss the investor lawsuits.
Tintri went public on June 30 after a slight delay during which it cut its IPO price from the expected $10.50 to $12.50 per share to $7.00 to $8.00 per share. The company's stock price stayed in the $5 to $7 range but fell sharply to the $3 range following its Sept. 7 earnings call.
Tintri has incredible technology, but really needs to find ways to strengthen its business, said Aaron Cardenas, CEO and founder of P1 Technologies, a Hermosa Beach, Calif.-based solution provider and an early channel partner to Tintri.