Tintri has axed 200 members of staff in the face of severe cashflow problems, leaving just 40 to 50 workers remaining as bankruptcy looms.
The storage company filed a report with the US Securities and Exchange Commission (SEC), explaining that company was letting the majority of its workforce go in order to preserve its "very limited" cash.
The company told the SEC that the redundancy process was "ongoing", and although it expected to complete it shortly, it did not know how much "payroll-related costs" the process will incur (likely through expenses like severance pay).
As part of the firings, the company also lost its executive vice president of worldwide sales and alliances, Tom Cashman. CEO Thomas Barton voluntarily abandoned the company last week.
Earlier this month, Tintri revealed in its First Quarter Fiscal 2019 results that Q1 revenues were expected to reach $22 million, in addition to $42.4 million on hand in "cash and cash equivalents" as of the end of May. Despite this, the company predicted that it didn’t have enough money to continue its operations after June 30 - a prediction that looks set to come true.
"The company has very limited cash resources remaining and currently does not expect to have sufficient liquidity to continue its operations beyond 30 June 2018," the filing said.
Although it was looking into a sale of the company, it would seem it hasn’t been able to find a buyer in the last two weeks, and the company looks set to go bust in the near future.
“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,” it said in its earlier results notice.
In further bad news for shareholders, the fact that Tintri's common stock price has fallen below $1 per share for more than 30 consecutive business days means that it has been delisted from the Nasdaq exchange, and can now only be traded on the lower-value over-the-counter market.
Tintri warned that its trading price is “volatile” and very risky, deterring investors to trade their stocks. It also said it’s unlikely shareholders will receive any returns on their shares.
