Friday turned out to be a nightmare for Tintri (NASDAQ:TNTR) after the computer storage provider warned investors that it’s currently in breach of certain covenants under its credit facilities and likely does not have sufficient liquidity to continue its operations beyond June 30, 2018. The company continues to evaluate its strategic options, including a sale of the company.
Adding insult to injury, Tintri also warned investors that the company’s shares may eventually be desisted from the Nasdaq Stock Market. Why? The company has received a notice of delisting from the Nasdaq as a result of its share price sinking below the minimum closing bid price of at least $1.00 per share for 30 consecutive business days. As a result, Tintri’s common stock may trade only on the over-the-counter market, or not at all.
Is that all? No. Tintri also announced that it will be delayed in filing its Annual Report on Form 10-K for its first quarter of fiscal 2019 with the SEC, beyond the deadline. The company is working to file the Form 10-K in June 2018.
Wall Street analysts are not rooting for Tintri’s success as well, earning a weak analyst consensus rating. TipRanks analytics exhibit TNTR as a Hold. Based on 7 analysts polled in the last 3 months, 5 issue a Hold on Tintri stock while 2 recommend a Sell.
Piper Jaffray analyst Andrew Nowinski recently noted (before today’s disclosure): “We believe it will be very difficult to reverse the deteriorating fundamentals (declining revenue, product GM and new customer adds) following the significant headcount reduction.”