Violin Memory (VMEMQ) 10-Q 14 Sep 16 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 31, 2016	Aug. 31, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 31, 2016
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Trading Symbol	VMEM
Entity Registrant Name	Violin Memory Inc
Entity Central Index Key	1,407,190
Current Fiscal Year End Date	--01-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		25,178,316

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
Current assets:
Cash and cash equivalents	$ 19,137	$ 23,921
Restricted cash	5,000	10,000
Short-term investments	12,290	42,058
Accounts receivable, net	2,567	5,308
Inventory	9,794	12,001
Other current assets	1,417	4,170
Total current assets	50,205	97,458
Property and equipment, net	8,545	9,322
Other assets	5,460	6,067
Total assets	64,210	112,847
Current liabilities:
Line of credit	7,073	13,398
Accounts payable	2,162	3,747
Accrued liabilities	11,239	13,570
Deferred revenue	11,118	13,006
Total current liabilities	31,592	43,721
Convertible senior notes, net	118,089	117,464
Deferred revenue	4,771	6,239
Other long-term liabilities		275
Total liabilities	154,452	167,699
Commitments and contingencies (Note 8)
Stockholders' deficit:
Preferred stock, $0.0001 par value, 10,000 shares authorized as of July 31, 2016; no shares issued and outstanding as of July 31, 2016 and January 31, 2016
Common stock, $0.0001 par value, 250,000 shares authorized as of July 31, 2016; 25,165 and 24,660 shares issued and outstanding as of July 31, 2016 and January 31, 2016, respectively	3	3
Additional paid-in capital	512,533	505,281
Accumulated other comprehensive income	549	456
Accumulated deficit	(603,327)	(560,592)
Total stockholders' deficit	(90,242)	(54,852)
Total liabilities and stockholders' equity	$ 64,210	$ 112,847

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jul. 31, 2016	Jan. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	25,165,000	24,660,000
Common stock, shares outstanding	25,165,000	24,660,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Revenue:
Product revenue		$ 2,063	$ 9,847	$ 6,220	$ 16,670
Service revenue		5,440	5,456	10,996	10,734
Total revenue		7,503	15,303	17,216	27,404
Cost of revenue:
Cost of product revenue	[1]	4,764	5,872	7,886	10,102
Cost of service revenue	[1]	2,533	2,831	5,247	5,552
Total cost of revenue		7,297	8,703	13,133	15,654
Gross profit		206	6,600	4,083	11,750
Operating expenses:
Sales and marketing	[1]	7,516	13,655	16,548	27,095
Research and development	[1]	8,637	10,580	18,831	22,106
General and administrative	[1]	3,236	4,708	6,648	9,859
Restructuring and other charges (recoveries)		(265)		1,470
Total operating expenses		19,124	28,943	43,497	59,060
Loss from operations		(18,918)	(22,343)	(39,414)	(47,310)
Other expense, net		(114)	(303)	(308)	(47)
Interest and other financing expense		(1,514)	(1,694)	(2,973)	(3,444)
Loss before income taxes		(20,546)	(24,340)	(42,695)	(50,801)
Income taxes		30	42	40	83
Net loss		$ (20,576)	$ (24,382)	$ (42,735)	$ (50,884)
Net loss per share of common stock, basic and diluted		$ (0.82)	$ (1.01)	$ (1.71)	$ (2.12)
Shares used in computing net loss per share of common stock, basic and diluted		25,061	24,147	24,919	24,011
[1]	Includes stock-based compensation expense as follows: Cost of product revenue $ 28 $ 270 $ 34 $ 521 Cost of service revenue 153 334 354 669 Sales and marketing 661 1,475 1,310 2,280 Research and development 1,181 1,977 3,341 3,955 General and administrative 1,091 1,902 2,130 3,794

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Stock-based compensation expense			$ 7,165	$ 11,219
Cost of Product Revenue [Member]
Stock-based compensation expense	$ 28	$ 270	34	521
Cost of Service Revenue [Member]
Stock-based compensation expense	153	334	354	669
Sales and Marketing [Member]
Stock-based compensation expense	661	1,475	1,310	2,280
Research and Development [Member]
Stock-based compensation expense	1,181	1,977	3,341	3,955
General and Administrative [Member]
Stock-based compensation expense	$ 1,091	$ 1,902	$ 2,130	$ 3,794

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Statement of Comprehensive Income [Abstract]
Net loss	$ (20,576)	$ (24,382)	$ (42,735)	$ (50,884)
Foreign currency translation adjustments	(3)	250	81	244
Unrealized holding gain (loss) on investments, net of tax	2	8	12	(16)
Comprehensive loss	$ (20,577)	$ (24,124)	$ (42,642)	$ (50,656)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Cash flows from operating activities:
Net loss	$ (42,735)	$ (50,884)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	4,055	4,697
Accretion of debt issuance costs to interest expense	696	878
Loss on disposal of property and equipment	99
Provision for excess and obsolete inventory	2,940
Stock-based compensation	7,165	11,219
Changes in operating assets and liabilities, net:
Accounts receivable	2,741	9,338
Inventory	(1,812)	(2,496)
Other assets	2,743	2,058
Accounts payable	(1,297)	(5,597)
Accrued liabilities	(3,404)	(3,915)
Deferred revenue	(3,356)	(3,112)
Net cash used in operating activities	(32,165)	(37,814)
Cash flows from investing activities:
Purchase of property and equipment	(1,242)	(3,149)
Decrease (increase) in restricted cash	5,000	(7,700)
Purchase of investments		(41,139)
Proceeds from maturity of investments	29,780	34,915
Net cash provided by (used in) investing activities	33,538	(17,073)
Cash flows from financing activities:
Proceeds from line of credit	12,847	17,723
Repayment of line of credit	(19,172)	(14,000)
Proceeds from stock plans	87	955
Net cash provided by (used in) financing activities	(6,238)	4,678
Effect of exchange rates on cash and cash equivalents	81	228
Net decrease in cash and cash equivalents	(4,784)	(49,981)
Cash and cash equivalents at beginning of year	23,921	93,432
Cash and cash equivalents at end of period	19,137	43,451
Supplemental disclosure of other cash flow information:
Taxes paid	17	15
Interest paid	2,550	2,668
Supplemental disclosure of non-cash investing and financing activities:
Transfer/exchange of inventory to/for property and equipment	1,878	184
Payables outstanding related to purchases of long-term assets	$ 167	$ 391

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	6 Months Ended
	Jul. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Summary of Significant Accounting Policies	1. Organization and Summary of Significant Accounting Policies Description of Business Violin Memory, Inc. (the “Company”) was incorporated in the State of Delaware on March 9, 2005 under the name Violin Technologies, Inc. The Company re-incorporated as Violin Memory, Inc. in the State of Delaware on April 11, 2007. The Company is a developer and supplier of persistent memory-based storage systems that are designed to bring storage performance in line with high-speed applications, servers and networks. These all-flash arrays are specifically designed at each level of the system architecture, starting with memory and optimized through the array, to leverage the inherent capabilities of flash memory. In February 2015, the Company introduced the Flash Storage Platform, a vertically integrated design of software, firmware and hardware that delivers performance, resiliency and availability at the same cost as legacy enterprise-class primary storage. The Flash Storage Platform runs the Company’s Concerto OS 7, a single operating system with integrated data protection, in-line block de-duplication and compression, stretch metro cluster and LUN mirroring as well as its suite of other Enterprise Data Services. The Company sells its products through its direct sales force, resellers and other channel partners. The Company operates as a single operating segment. Going Concern The Company has incurred significant operating losses and negative cash flows from operations since its inception. As of July 31, 2016, the Company had an accumulated deficit of $603.3 million. During the year ended January 31, 2016, the Company reported a net loss of $99.1 million and negative cash flows from operations of $78.6 million. During the six months ended July 31, 2016, the Company reported a net loss of $42.7 million and negative cash flows from operations of $32.2 million. As of July 31, 2016, the Company had cash, cash equivalents and short-term investments of $31.4 million. The Company currently expects to incur net losses and negative cash flows from operations for at least the next twelve months even though it continues to restructure and reduce its expenses to be more in line with its current revenue expectations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The condensed consolidated financial statements assume the Company will continue as a going concern, with realization of assets and settlement of liabilities in the normal course of business. They do not include any adjustments for the recovery and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern depends on its ability to execute its business plan, increase revenue and margins, reduce expenditures and secure additional financing. In March 2016, the Company announced a restructuring plan focused on aligning its expense structure with revenue expectations. The Company has reduced headcount from 318 at its fiscal year end to 235 as of July 31, 2016. In the second quarter, the Company initiated a plan to outsource certain non-core engineering functions to a service provider located in Eastern Europe and expects the transition to be completed by the end of this fiscal year. However, the decline in revenue over the last two quarters has reduced the impact of these reductions in operating expenses, thereby not achieving the expected reduction of quarterly cash burn rate. In addition, these restructuring activities may adversely impact the Company’s ability to continue to compete effectively and hinder its efforts to increase its revenue. In the second quarter, the Company filed a shelf registration statement and is currently pursuing all options, including seeking additional financing in order to continue to support its operations. There is no assurance that the Company will be successful in generating sufficient revenue, increasing gross margins or reducing operating costs. In addition, the Company may not be able to obtain financing. Failure to generate sufficient revenue, increase gross margins, control or reduce operating costs and to raise sufficient funds may result in an inability of the Company to continue as a going concern. Even if the Company raises additional capital, it may also be required to modify, delay or abandon some of its plans and investments, which could have a material adverse effect on the Company’s business, operating results and financial condition and the Company’s ability to achieve its intended business objectives. Basis of Presentation and Consolidation The accompanying condensed consolidated balance sheets and the condensed consolidated statements of operations, comprehensive loss and cash flows are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, in the opinion of management, the financial statements include all the normal and recurring adjustments that are necessary to fairly present the results of the interim periods presented. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2016, filed with the SEC on April 6, 2016. The results of operations for the three months and six months ended July 31, 2016 are not necessarily indicative of the results to be expected for any subsequent interim period, the year ending January 31, 2017 or any other future period. In July 2016, the Company filed a certificate of amendment to its Articles of Incorporation with the Secretary of State of the State of Delaware in order to effectuate a reverse stock split of the Company’s issued and outstanding common stock, par value $0.0001 per share on a 1-for-4 basis effective July 6, 2016. The accompanying consolidated financial statements and notes thereto give retrospective effect of the reverse stock split for all periods presented. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, the Company evaluates its significant estimates, including those related to estimated selling prices for elements sold in multiple-element revenue arrangements, product warranty, determination of the fair value of stock options, carrying values of inventories, liabilities for unrecognized tax benefits and deferred income tax asset valuation allowances. The Company also uses estimates in determining the useful lives of property and equipment and intangible assets as well as in its provision for doubtful accounts. Actual results could differ from those estimates. Summary of Significant Accounting Policies The Company’s significant accounting policies have been described in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2016 filed with the SEC on April 6, 2016. There have been no changes to the Company’s significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on the Company’s condensed consolidated financial statements and related notes. Recent Accounting Pronouncements The following discusses new developments in recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements. The developments disclosed in the Company’s 2016 Annual Report on Form 10-K have all been adopted, except for the final two items listed below, which are still pending (ASU 2014-09 and ASU 2014-15). In August 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (1) Debt prepayment or debt extinguishment costs; (2) Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) Contingent consideration payments made after a business combination; (4) Proceeds from the settlement of insurance claims; (5) Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) Distributions received from equity method investees; (7) Beneficial interests in securitization transactions; and (8) Separately identifiable cash flows and application of the predominance principle. The required transition method will use a full retrospective approach for all periods presented with limited exceptions. The standard update is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption (of all the changes) is permitted in any interim or annual period. The adoption of this standard on July 31, 2016 did not have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments In May 2016, the FASB issued ASU No. 2016-12, Revenue From Contracts With Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Accounting In March 2016, the FASB issued ASU No. 2016-08, Principal Versus Agent Considerations (reporting Revenue Gross Versus Net) In February 2016, the FASB issued ASU No. 2016-02, Leases, In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	2. Fair Value Measurements Assets Measured and Recorded at Fair Value on a Recurring Basis The Company measures its financial assets and liabilities at fair value. The inputs used in the valuation methodologies in measuring fair value are defined in the fair value hierarchy as follows: Level 1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 Inputs are unobservable inputs based on the Company’s assumptions. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The following tables present the fair value of our financial assets and liabilities using the above input categories (in thousands): July 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 15,034 $ — $ — $ 15,034 Total cash equivalents 15,034 — — 15,034 Short-term investments: Corporate debt securities — 9,665 — 9,665 U.S. government and agency obligations 1,503 1,122 — 2,625 Commercial paper — — — — Total short-term investments 1,503 10,787 — 12,290 $ 16,537 $ 10,787 $ — $ 27,324 January 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 8,319 $ — $ — $ 8,319 Commercial paper — 6,505 — 6,505 Total cash equivalents 8,319 6,505 — 14,824 Short-term investments: Corporate debt securities — 30,386 — 30,386 U.S. government and agency obligations 1,503 8,671 — 10,174 Commercial paper — 1,498 — 1,498 Total short-term investments 1,503 40,555 — 42,058 $ 9,822 $ 47,060 $ — $ 56,882 The Company measures its cash equivalents and marketable securities at fair value. Money market funds are valued primarily using quoted market prices utilizing market observable inputs. The Company’s investments in commercial paper, U.S. Government and agency obligations and corporate debt securities are classified within Level 2 as the market inputs to value these instruments consist of market yields, reported trades and broker/dealer quotes. There were no transfers between Level 1 and 2 during the six months ended July 31, 2016 and the year ended January 31, 2016. Fair Value of Other Financial Instruments The carrying amounts of the Company’s accounts receivable, accounts payable, accrued liabilities and other liabilities approximate their fair value due to their short-term maturities. Based on quoted market prices as of July 31, 2016 and January 31, 2016, the fair value of the Convertible Senior Notes (Note 11) was approximately $51.0 million and $61.5 million, respectively, determined using Level 2 inputs as they are not actively traded in markets.

Short-Term Investments

Short-Term Investments	6 Months Ended
	Jul. 31, 2016
Cash and Cash Equivalents [Abstract]
Short-Term Investments	3. Short-Term Investments The following is a summary of short-term investments by type of instrument (in thousands): July 31, 2016 Amortized Unrealized Unrealized Estimated Corporate debt securities $ 9,664 $ 2 $ (1 ) $ 9,665 U.S. government and agency obligations 2,622 3 — 2,625 $ 12,286 $ 5 $ (1 ) $ 12,290 January 31, 2016 Amortized Unrealized Unrealized Estimated Commercial paper $ 1,498 $ — $ — $ 1,498 Corporate debt securities 30,395 4 (13 ) 30,386 U.S. government and agency obligations 10,173 2 (1 ) 10,174 $ 42,066 $ 6 $ (14 ) $ 42,058 All marketable securities are deemed by management to be available-for-sale and are reported at fair value. Net unrealized gains or losses that are not determined to be other-than-temporary are reported within stockholders’ deficit on the Company’s condensed consolidated balance sheets as a component of accumulated comprehensive income. Realized gains or losses are recorded based on the specific identification method. The amortized cost and fair value of short-term investments held as of July 31, 2016 and April 30, 2016, by contractual years-to-maturity, are as follows (in thousands): July 31, January 31, 2016 2016 Amortized Fair Amortized Fair Due within one year $ 12,286 $ 12,290 $ 40,564 $ 40,555 Due within one to two years — — 1,502 1,503 $ 12,286 $ 12,290 $ 42,066 $ 42,058

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jul. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Balance Sheet Components	4. Balance Sheet Components Accounts Receivable, Net The following table shows the components of accounts receivable, net (in thousands): July 31, January 31, Accounts receivable $ 2,771 $ 5,589 Allowance for doubtful accounts (37 ) (37 ) Allowance for sales returns (167 ) (244 ) $ 2,567 $ 5,308 Inventory The following table shows the components of inventory (in thousands): July 31, January 31, Raw materials $ 1,985 $ 3,785 Finished goods 7,809 8,216 $ 9,794 $ 12,001 Property and Equipment, Net The following table shows the components of property and equipment, net (in thousands): July 31, January 31, Laboratory equipment $ 21,658 $ 20,190 Computer hardware and software 10,516 9,572 Office furniture 223 215 Leasehold improvements 651 651 33,048 30,628 Less: accumulated depreciation (24,503 ) (21,306 ) $ 8,545 $ 9,322 Depreciation expense (including amortization of leasehold improvements and intangibles) was $2.1 million and $2.2 million for the three months ended July 31, 2016 and 2015, respectively and $4.1 million and $4.7 million for the six months ended July 31, 2016 and 2015, respectively. Other Assets The following table shows the components of other assets (in thousands): July 31, January 31, Purchased intellectual property $ 4,790 $ 5,294 Other 670 773 $ 5,460 $ 6,067 During the year ended January 31, 2015, the Company capitalized $6.0 million of licensed OEM software, which is being amortized over the greater of an estimated useful life of six years on a straight line basis, or in proportion of the actual revenue to date over the expected revenue from our Flash Storage Platform product over the six year estimated life of the product. Accrued Liabilities The following table shows the components of accrued liabilities (in thousands): July 31, January 31, Compensation and benefits $ 3,158 $ 6,161 Purchase commitments 832 117 Restructuring charges 1,118 955 Professional fees 1,146 1,123 Warranty 875 864 Accrued interest 1,700 1,700 Other 2,410 2,650 $ 11,239 $ 13,570 Accrued Warranty The following table is a reconciliation of the changes in the Company’s product warranty liability (in thousands): Six Months Ended July 31, 2016 2015 Balance, beginning of year $ 864 $ 1,262 Additions 172 325 Settlements (161 ) (641 ) Balance, end of period $ 875 $ 946 Restructuring and Other Charges (Recoveries) During the first quarter of fiscal 2017, the Company implemented a strategic restructuring plan that was focused on aligning its expense structure with current revenue expectations. In connection with the restructuring plan, the Company reduced headcount. The Company’s restructuring charges consist primarily of severance, facility costs and other related charges. Severance generally includes severance payments and health insurance coverage. Facility costs include rent expense and related common area maintenance charges attributable to a leased facility that will not utilized over the remaining lease term. A summary of the restructuring activities is as follows (in thousands): Severance Excess facility Excess Other Total Liability Balance January 31, 2016 $ — $ 955 $ — $ — $ 955 Restructuring and other charges (recoveries) 971 (113 ) 396 216 1,470 Payments, net of receipts and other adjustments (769 ) (266 ) (121 ) (151 ) (1,307 ) Balance July 31, 2016 $ 202 $ 576 $ 275 $ 65 $ 1,118 Accumulated Other Comprehensive Income The following table is a reconciliation of the changes in the Company’s accumulated other comprehensive income (in thousands): Foreign Currency Net Unrealized Total Accumulated other comprehensive income as of January 31, 2016 $ 464 $ (8 ) $ 456 Other comprehensive income, net of tax, before reclassifications 81 12 93 Amounts reclassified, net of tax, from accumulated other comprehensive income — — — Net current-period other comprehensive income, net of tax 81 12 93 Accumulated other comprehensive income as of July 31, 2016 $ 545 $ 4 $ 549

Equity Award and Employee Compe

Equity Award and Employee Compensation Plans	6 Months Ended
	Jul. 31, 2016
Equity [Abstract]
Equity Award and Employee Compensation Plans	5. Equity Award and Employee Compensation Plans The 2012 Stock Plan In November 2012, the Company’s stockholders approved the adoption of the 2012 Stock Incentive Plan (the “2012 Plan”) as the successor plan to the 2005 Plan, which became effective at the completion of the Company’s initial public offering (“IPO”). The 2012 Plan is administered by the Compensation Committee of the Board of Directors (the “Compensation Committee”), and the Compensation Committee may terminate or amend the plan at any time. Unexercised options or restricted stock units under the 2005 Plan that cancel due to a grantee’s termination may be reissued under the 2012 Plan. Under the 2012 Plan, stock options, restricted shares, restricted stock units and stock appreciation rights may be granted to employees, outside directors and consultants at not less than 100% of the fair value on the date of grant and generally vest ratably over four years. Options generally expire seven years from the date of grant. At the June 30, 2016 annual meeting, the stockholders approved a 1-for-4 reverse split, effective with trading on July 6, 2016. Each four shares of the Company’s issued and outstanding stock was automatically combined into one issued and outstanding share of common stock. In addition, the authorized shares of the Company’s common stock were reduced from one billion to 250 million. The accompanying disclosure in these notes give retrospective effect for the reverse stock split. As of January 31, 2016, there were 4,088,055 shares authorized under the 2012 Plan. On February 1, 2016, the share reserve increased by 1,233,017 shares to an aggregate of 5,321,072 shares authorized under the plan and will be increased by any shares forfeited under the 2005 Plan. Common Stock Options and Inducement Awards During fiscal 2015, the Company issued inducement awards totaling 1,000,000 shares outside of the 2012 Plan under the employee inducement award exemption under the New York Stock Exchange Listed Company Manual Rule 303A.08 to the Company’s CEO. The following table summarizes the stock option activity related to shares of common stock under the Company’s 2005, 2012 Plans as well as the Inducement Award (in thousands, except per share data): Outstanding Options Shares Number of Weighted- Weighted-Average Aggregate Balances, January 31, 2016 452 2,850 $ 13.48 6.85 $ 157 Additional shares authorized 1,233 — RSUs granted (257 ) — Recovery of shares from net settlement 2 — RSUs cancelled/forfeited 653 — Options granted (623 ) 623 2.61 Options exercised 50 (50 ) 0.56 Options forfeited 102 (102 ) 4.77 Balances, July 31, 2016 1,612 3,321 $ 11.82 6.59 $ 25 Options expected to vest - July 31, 2016 892 $ 8.60 $ 16 Options exercisable – July 31, 2016 1,975 $ 13.47 $ 4 (1) Aggregate intrinsic value is based on the common stock price at each respective date presented. The weighted average grant date fair value of options granted during the quarter ended July 31, 2016 was $2.34 per share. The total intrinsic value of options exercised during the quarter ended July 31, 2016 was $41,000. Restricted Stock Units The table below summarizes the RSU activity under the Company’s 2005 and 2012 Plans (in thousands, except per share data): Number Weighted- Aggregate Balance, January 31, 2016 2,736 $ 10.45 $ 9,741 RSUs granted 257 1.23 RSUs vested (423 ) 15.34 RSUs cancelled/forfeited (653 ) 10.48 Balance, July 31, 2016 1,917 $ 8.13 $ 3,116 (1) Aggregate intrinsic value is based on the common stock price at each respective date presented. The aggregate intrinsic value of RSUs that vested during the quarter ended July 31, 2016 was $0.4 million. Non-employee Stock Options and Awards For the three months and six months ended July 31, 2016 and 2015, the Company did not grant any options or restricted shares of common stock to non-employees. Employee Stock Purchase Plan In November 2012, the Company’s stockholders approved the adoption of the 2012 Employee Stock Purchase Plan (the “2012 Purchase Plan”). The 2012 Purchase Plan permits eligible employees to purchase common stock on favorable terms via payroll deductions of up to 15% of the employee’s salary, subject to certain share and statutory dollar limits. Two overlapping offering periods commence during each calendar year, on each June 1 and December 1 or such other periods or dates as determined by the Compensation Committee from time to time, and the offering periods last up to 24 months with a purchase date every six months. The price of each share purchased is 85% of the lower of a) the fair value per share of common stock on the last trading day before the commencement of the applicable offering period, or b) the fair value per share of common stock on the purchase date. The 2012 Purchase Plan is administered by the Compensation Committee, and the Compensation Committee may terminate or amend the plan. Upon adoption, a total of 250,000 shares were reserved for issuance under the 2012 Purchase Plan. As of July 31, 2016, pursuant to the provisions of the plan, the share reserve was 549,351 shares. Employee 401(k) Plan The Company sponsors the Violin Memory, Inc. 401(k) Plan (“401(k) Plan”), which qualifies under Section 401(k) of the Internal Revenue Code and is designed to provide retirement benefits for its eligible employees through tax-deferred salary deductions. Employees may elect to contribute up to 90% of their eligible compensation to the 401(k) Plan. Employee contributions are limited to a maximum annual amount as set periodically by the Internal Revenue Service (“IRS”). The Company does not currently match employee contributions.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jul. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	6. Stock-Based Compensation As of July 31, 2016, total stock-based compensation cost related to unvested equity awards not yet recognized, net of estimated forfeitures, totaled $9.4 million for RSUs and $4.0 million for options. There was no capitalized stock-based compensation expense for any period presented. Stock based compensation associated with non-employee awards was nil and $0.2 million for both the three months and the six months ended July 31, 2016 and 2015, respectively.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	7. Income Taxes The Company’s quarterly provision for income taxes is based on an estimated effective annual income tax rate. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. Income tax expense for the three months ended July 31, 2016 and 2015 was $30,000 and $42,000 respectively, and $40,000 and $83,000 for the six months ended July 31, 2016 and 2015, respectively. As of July 31, 2016, the income tax rate varies from the United States statutory income tax rate primarily due to valuation allowances in the United States and taxable income generated by the Company’s foreign wholly owned subsidiaries. The Company has a full valuation allowance against its net operating loss carryforwards and research and development credits for both federal and state purposes. Utilization of the net operating loss carry forwards and credits may be subject to substantial annual limitations due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitations may result in the expiration of net operating loss carryforwards and credits before utilization. The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for valuation allowances on a quarterly basis. There is no corresponding income tax benefit recognized with respect to losses incurred and no corresponding income tax expense recognized with respect to earnings generated in jurisdictions with a valuation allowance. This causes variability in the Company’s effective tax rate. The Company intends to maintain the valuation allowances until it is more likely than not that the net deferred tax assets will be realized. As of July 31, 2016, the Company had no unrecognized tax benefits that would affect the Company’s effective tax rate if recognized.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Litigation The Company assesses its potential liability by analyzing specific litigation and regulatory matters using reasonably available information. The Company develops its views on estimated losses in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. Beginning on November 26, 2013, four putative class action lawsuits were filed in the United States District Court for the Northern District of California naming the Company and a number of our present or former directors and officers, and the underwriters of the Company’s September 27, 2013 initial public offering (the “IPO”). The four complaints were consolidated into a single, putative class action, and on March 28, 2014, the plaintiffs filed a consolidated complaint purporting to assert claims under the federal securities laws, based upon seven categories of alleged omissions, on behalf of purchasers of the Company’s common stock issued in the IPO. On July 28, 2016, the court issued an order granting final approval of class settlement, judgment and order of dismissal with prejudice. The class settlement included, among other things, the establishment of a settlement fund of $7.5 million, which was disbursed as provided in the settlement agreement and the court’s orders. The settlement fund was paid by the Company’s insurance carrier and did not result in incurring any additional expense in the current quarter. A putative stockholder derivative action is pending before the same court as the putative class action. In the derivative action, the plaintiffs allege that certain of the Company’s current and former officers and directors breached their fiduciary duties to the Company by violating the federal securities laws and exposing the Company to possible financial liability. The parties have submitted to the court a motion for preliminary approval of a settlement of the derivative action. The settlement includes the Company’s agreement to certain governance changes relating to: evaluation of stockholder proposals; board independence; board competence; formalizing the operation of its management’s disclosure committee; the functioning of the audit committee of its board of directors; performance goals for its chief executive officer; and certain modifications to its compliance functions and corporate governance policies. The Company can make no assurance that the proposed settlement will be approved by the court. The Company believes the ultimate outcome of the current legal proceedings, individually and in the aggregate, will not have a material adverse effect on its financial position, results of operations or cash flows. However, because of the inherent uncertainties surrounding litigation, should the outcome of these actions be unfavorable, the Company’s business, financial condition, results of operations or cash flows could be materially and adversely affected. Indemnification The Company indemnifies certain of its officers and directors for certain events or occurrences, subject to certain limits, while the officer or director is or was serving at the Company’s request in such capacity. The Company’s certificate of incorporation and bylaws require that it indemnify its officers and directors against expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in connection with any proceedings arising out of their services to the Company. In addition, the Company has entered into separate indemnification agreements with each of its directors and executive officers, which provide for indemnification of these individuals under certain circumstances. The maximum amount of potential future indemnification is unlimited; however, the Company has a Directors and Officers insurance policy that enables the Company to recover a portion of any future amounts paid. Historically, the Company has not been obligated to make any payments for these obligations and no liabilities have been recorded for these obligations on the condensed consolidated balance sheets as of July 31, 2016. The Company may, in the ordinary course of business, agree to defend and indemnify some customers against legal claims that the Company’s products infringe on certain U.S. patents or copyrights. The terms of such obligations may vary. To date, the Company has not been required to make any payments resulting from such infringement indemnifications and no amounts have been accrued for such matters. Operating Lease Commitments The Company leases office space under various non-cancelable operating leases that expire at various dates until February 2017. The Company expects to make approximately $2.3 million in minimum lease payments under its operating leases as of July 31, 2016 during the remainder of fiscal year 2017, and none thereafter. Purchase Commitments The Company depends upon one contract manufacturer to manufacture its products and provide test services. Due to the lengthy lead times, the Company must order from its contract manufacturer well in advance and is obligated to pay for materials when received by the contract manufacturer and services once they are completed. As of July 31, 2016, the Company had approximately $2.8 million of outstanding purchase commitments to such contract manufacturer and other vendors. Advertising Commitment In June 2012, the Company entered into an agreement with the Forty Niners SC Stadium Company LLC, which was amended in April 2014. As part of the amended agreement, the Company will receive advertising and related benefits at the stadium in Santa Clara, California. The Company recognized $0.3 million in advertising expenses related to this agreement for each of the three months ended July 31, 2016 and 2015 and $0.6 million for each of the six months ended July 31, 2016 and 2015. As of July 31, 2016, the Company had approximately $14.0 million of outstanding commitments under this arrangement. Other Contingencies From time to time, the Company may become involved in legal proceedings or other claims and assessments arising in the ordinary course of business. The Company is not currently a party to any litigation matters, except as discussed above, which, individually or in the aggregate, are expected to have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

Segment Information and Custome

Segment Information and Customer Concentration	6 Months Ended
	Jul. 31, 2016
Segment Reporting [Abstract]
Segment Information and Customer Concentration	9. Segment Information and Customer Concentration Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, the Company’s chief executive officer. The Company’s chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region for purposes of allocating resources and evaluating financial performance. The Company has one business activity, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Accordingly, the Company considers itself to have a single reportable segment and operating unit structure. Revenue by geography is based on the billing address of the customer. The following tables set forth revenue and property and equipment, net by geographic area (in thousands): Three Months Ended July 31, Six Months Ended July 31, Revenue: 2016 2015 2016 2015 Americas: United States $ 5,721 $ 9,857 $ 12,487 $ 18,031 Other Americas 25 29 53 61 5,746 9,886 12,540 18,092 Europe: United Kingdom 476 1,602 911 2,701 Other Europe 805 1,680 1,845 2,187 1,281 3,282 2,756 4,888 Asia Pacific: 476 2,135 1,920 4,424 $ 7,503 $ 15,303 $ 17,216 $ 27,404 Property and Equipment, Net: July 31, 2016 January 31, 2016 United States $ 8,398 $ 9,091 Europe 71 107 Asia Pacific 76 124 $ 8,545 $ 9,322 Customer Concentration For the three months ended July 31, 2016, one customer represented 21% of total revenue. For the six months ended July 31, 2016, one customer represented 14% of total revenue, and another customer represented 11%. For the three months ended July 31, 2015 one customer represented 30% of total revenue. For the six months ended July 31, 2015 one customer represented 18% of total revenue. Revenue from the Company’s five largest customers for the three months ended July 31, 2016 and 2015 was 36% and 48%, respectively, and 34% and 36% for the six months ended July 31, 2015 and 2015, respectively. As a consequence of the limited number of customers and the concentrated nature of our sales, the Company’s revenue, gross margin and operating results may fluctuate significantly from period to period and are difficult to estimate. As of July 31, 2016, three customers represented 18%, 14% and 10% of the accounts receivable balance. As of January 31, 2016, three customers represented 20%, 20% and 10% of the accounts receivable balance.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jul. 31, 2016
Earnings Per Share [Abstract]
Net Loss Per Share	10. Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, less the weighted-average unvested common stock subject to repurchase or forfeiture. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options and warrants, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Numerator: Net loss $ (20,576 ) $ (24,382 ) $ (42,735 ) $ (50,884 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 25,061 24,147 24,919 24,011 Net loss per share, basic and diluted $ (0.82 ) $ (1.01 ) $ (1.71 ) $ (2.12 ) Since the Company experienced losses for all periods presented, basic net loss per share is the same as diluted net loss per share for all periods. The following potential common stock equivalents that could potentially dilute net loss per share in the future were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive for the periods presented (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Convertible senior notes (on an as converted basis) 5,338 5,338 5,338 5,338 Common stock warrants 41 41 41 41 Shares subject to outstanding common stock options and restricted stock units 5,238 5,235 5,238 5,235 10,617 10,614 10,617 10,614

Convertible Senior Notes and Li

Convertible Senior Notes and Line of Credit	6 Months Ended
	Jul. 31, 2016
Debt Disclosure [Abstract]
Convertible Senior Notes and Line of Credit	11. Convertible Senior Notes and Line of Credit Convertible Senior Notes On September 19, 2014, the Company issued $120 million aggregate principal amount of Convertible Senior Notes (the “Notes”), which included $15 million issued pursuant to an over-allotment option granted to the initial purchasers. The aggregate principal amount of the Notes is due on October 1, 2019, unless earlier repurchased, redeemed or converted. The Company received net proceeds of $115.4 million after deducting offering costs. Interest on the outstanding Notes accrues at a rate of 4.25% per annum and is payable semi-annually on April 1 and October 1 of each year. The Notes are unsecured senior obligations of Violin and were offered and sold only to qualified institutional investors, as defined in Rule 144 under the Securities Act of 1933 as amended (“Securities Act”). The Notes and the shares of the Company’s common stock issuable upon conversion of the Notes have not been registered under the Securities Act. The Company used the net proceeds to repay all amounts outstanding and owed under its credit agreement with Silicon Valley Bank (SVB) discussed below, and intends to use the remaining net proceeds for general corporate purposes, including working capital. The Company may redeem the Notes, at its option, in whole or in part on or after October 1, 2017, if the last reported sale price per share of its common stock equals or exceeds 130% of the applicable conversion price for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on the trading day immediately prior to the date on which the Company delivers notice of the redemption. Holders of the Notes may convert all or any portion of their Notes, in multiples of $1,000 principal amount, at their option at any time prior to the close of business on the business day immediately preceding the maturity date. The Notes are convertible at an initial conversion rate of 44.4840 shares of the Company’s common stock per $1,000 principal amount of Notes. This is equivalent to an initial conversion price of approximately $22.48 per share of the Company’s common stock, subject to adjustment upon the occurrence of certain dilutive events, or, if the Company obtains the required consent from its stockholders, into shares of the Company’s common stock, cash or a combination of cash and shares of its common stock, at the Company’s election. The conversion rate will be increased in the case of corporate events that constitute a “Make-Whole Fundamental Change” (as defined in the indenture governing the Notes). As of July 31, 2016, the Notes were not convertible. The holders of the Notes will have the ability to require the Company to repurchase the Notes in whole or in part upon the occurrence of an event that constitutes a “Fundamental Change” (as defined in the indenture governing the Notes including such events as a “change in control” or “termination of trading”). In such case, the repurchase price would be 100% of the principal amount of the Notes plus accrued and unpaid interest, if any. Certain events are also considered “Events of Default,” which may result in the acceleration of the maturity of the Notes, as described in the indenture governing the Notes, including, among other events, the Company’s failure to timely file with the SEC the reports required pursuant to Section 13 or 15(d) of the Securities Exchange of 1934, as amended. There were no “Fundamental Changes” or “Events of Default” that occurred during the quarter ended July 31, 2016. The Company was in compliance with its covenants under the Notes as of July 31, 2016. During the time that the Notes are outstanding, the Company may not at any time incur any indebtedness other than permitted debt, which is defined as: (a) revolving debt secured by the Company’s accounts receivable and the proceeds therefrom in a principal amount not to exceed $50 million; (b) unsecured indebtedness (including the Notes) in a principal amount not to exceed (when combined with any indebtedness incurred under clause (c) below) $150 million; (c) secured indebtedness secured by the Company’s intellectual property in a principal amount not to exceed (when combined with any indebtedness incurred under clause (b) above) $150 million; and (d) unsecured subordinated indebtedness in a principal amount not to exceed $50 million. Furthermore, the Company may incur indebtedness if (a) the Company is not in default and such additional debt would not put it into default and (ii) the consolidated leverage ratio, as defined, after taking the additional debt into account does not exceed 5:1. The conversion option of the Notes cannot be settled in cash prior to obtaining the necessary approval of the Company’s stockholders. In accordance with guidance in ASC 470-20, Debt with Conversion and Other Options Embedded Derivatives The deferred debt issuance costs have been recorded as a direct deduction from the Notes’ carrying amount in accordance with ASU No. 2015-03 – Simplifying the Presentation of Debt Issuance Costs Silicon Valley Bank Credit Agreement In October 2014, the Company entered into a $20.0 million secured revolving line of credit with SVB. The line of credit was set to expire on October 24, 2016, subject to acceleration upon certain specified events of defaults. In April 2016, the Company amended its secured revolving line of credit with SVB, to extend its term through May 1, 2017, modify the financial covenants and lower the commitment to $10 million. The Company’s obligations under the agreement are collateralized by a first priority security interest in the Company’s accounts receivable and the proceeds therefrom. Borrowings under this facility will bear interest at a rate per annum of either (a) the sum of (i) the Eurodollar rate plus (ii) 5.00%, or (b) the sum of (i) ABR plus (ii) 2.00%. The Company had $7.1 million and $13.4 million outstanding on this facility at July 31, 2016 and January 31, 2016, respectively. The credit agreement contains financial covenants, including covenants requiring the Company to maintain a minimum cash balance, a minimum consolidated adjusted quick ratio and achieve a certain level of revenue relative to its operating plan. In addition, the credit agreement contains certain negative covenants, including restrictions on liens, indebtedness, fundamental changes, dispositions, restricted payments and investments. The Company was not in compliance with the covenants under this agreement as of July 31, 2016. In August 2016, the Company terminated this facility.

Organization and Summary of S19

Organization and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jul. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Violin Memory, Inc. (the “Company”) was incorporated in the State of Delaware on March 9, 2005 under the name Violin Technologies, Inc. The Company re-incorporated as Violin Memory, Inc. in the State of Delaware on April 11, 2007. The Company is a developer and supplier of persistent memory-based storage systems that are designed to bring storage performance in line with high-speed applications, servers and networks. These all-flash arrays are specifically designed at each level of the system architecture, starting with memory and optimized through the array, to leverage the inherent capabilities of flash memory. In February 2015, the Company introduced the Flash Storage Platform, a vertically integrated design of software, firmware and hardware that delivers performance, resiliency and availability at the same cost as legacy enterprise-class primary storage. The Flash Storage Platform runs the Company’s Concerto OS 7, a single operating system with integrated data protection, in-line block de-duplication and compression, stretch metro cluster and LUN mirroring as well as its suite of other Enterprise Data Services. The Company sells its products through its direct sales force, resellers and other channel partners. The Company operates as a single operating segment.
Going Concern	Going Concern The Company has incurred significant operating losses and negative cash flows from operations since its inception. As of July 31, 2016, the Company had an accumulated deficit of $603.3 million. During the year ended January 31, 2016, the Company reported a net loss of $99.1 million and negative cash flows from operations of $78.6 million. During the six months ended July 31, 2016, the Company reported a net loss of $42.7 million and negative cash flows from operations of $32.2 million. As of July 31, 2016, the Company had cash, cash equivalents and short-term investments of $31.4 million. The Company currently expects to incur net losses and negative cash flows from operations for at least the next twelve months even though it continues to restructure and reduce its expenses to be more in line with its current revenue expectations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. The condensed consolidated financial statements assume the Company will continue as a going concern, with realization of assets and settlement of liabilities in the normal course of business. They do not include any adjustments for the recovery and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern depends on its ability to execute its business plan, increase revenue and margins, reduce expenditures and secure additional financing. In March 2016, the Company announced a restructuring plan focused on aligning its expense structure with revenue expectations. The Company has reduced headcount from 318 at its fiscal year end to 235 as of July 31, 2016. In the second quarter, the Company initiated a plan to outsource certain non-core engineering functions to a service provider located in Eastern Europe and expects the transition to be completed by the end of this fiscal year. However, the decline in revenue over the last two quarters has reduced the impact of these reductions in operating expenses, thereby not achieving the expected reduction of quarterly cash burn rate. In addition, these restructuring activities may adversely impact the Company’s ability to continue to compete effectively and hinder its efforts to increase its revenue. In the second quarter, the Company filed a shelf registration statement and is currently pursuing all options, including seeking additional financing in order to continue to support its operations. There is no assurance that the Company will be successful in generating sufficient revenue, increasing gross margins or reducing operating costs. In addition, the Company may not be able to obtain financing. Failure to generate sufficient revenue, increase gross margins, control or reduce operating costs and to raise sufficient funds may result in an inability of the Company to continue as a going concern. Even if the Company raises additional capital, it may also be required to modify, delay or abandon some of its plans and investments, which could have a material adverse effect on the Company’s business, operating results and financial condition and the Company’s ability to achieve its intended business objectives.
Basis of Presentation and Consolidation	Basis of Presentation and Consolidation The accompanying condensed consolidated balance sheets and the condensed consolidated statements of operations, comprehensive loss and cash flows are unaudited. These unaudited interim condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, in the opinion of management, the financial statements include all the normal and recurring adjustments that are necessary to fairly present the results of the interim periods presented. As such, the information included in this Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2016, filed with the SEC on April 6, 2016. The results of operations for the three months and six months ended July 31, 2016 are not necessarily indicative of the results to be expected for any subsequent interim period, the year ending January 31, 2017 or any other future period. In July 2016, the Company filed a certificate of amendment to its Articles of Incorporation with the Secretary of State of the State of Delaware in order to effectuate a reverse stock split of the Company’s issued and outstanding common stock, par value $0.0001 per share on a 1-for-4 basis effective July 6, 2016. The accompanying consolidated financial statements and notes thereto give retrospective effect of the reverse stock split for all periods presented. The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, the Company evaluates its significant estimates, including those related to estimated selling prices for elements sold in multiple-element revenue arrangements, product warranty, determination of the fair value of stock options, carrying values of inventories, liabilities for unrecognized tax benefits and deferred income tax asset valuation allowances. The Company also uses estimates in determining the useful lives of property and equipment and intangible assets as well as in its provision for doubtful accounts. Actual results could differ from those estimates.
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies The Company’s significant accounting policies have been described in Note 1 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2016 filed with the SEC on April 6, 2016. There have been no changes to the Company’s significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on the Company’s condensed consolidated financial statements and related notes.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The following discusses new developments in recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements. The developments disclosed in the Company’s 2016 Annual Report on Form 10-K have all been adopted, except for the final two items listed below, which are still pending (ASU 2014-09 and ASU 2014-15). In August 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments (1) Debt prepayment or debt extinguishment costs; (2) Settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; (3) Contingent consideration payments made after a business combination; (4) Proceeds from the settlement of insurance claims; (5) Proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, (6) Distributions received from equity method investees; (7) Beneficial interests in securitization transactions; and (8) Separately identifiable cash flows and application of the predominance principle. The required transition method will use a full retrospective approach for all periods presented with limited exceptions. The standard update is effective for fiscal years beginning after December 15, 2017 and interim periods within those years. Early adoption (of all the changes) is permitted in any interim or annual period. The adoption of this standard on July 31, 2016 did not have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Measurement of Credit Losses on Financial Instruments In May 2016, the FASB issued ASU No. 2016-12, Revenue From Contracts With Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, In April 2016, the FASB issued ASU No. 2016-10, Identifying Performance Obligations and Licensing In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Accounting In March 2016, the FASB issued ASU No. 2016-08, Principal Versus Agent Considerations (reporting Revenue Gross Versus Net) In February 2016, the FASB issued ASU No. 2016-02, Leases, In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern, In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers
Fair Value Measurements	The Company measures its financial assets and liabilities at fair value. The inputs used in the valuation methodologies in measuring fair value are defined in the fair value hierarchy as follows: Level 1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 Inputs are unobservable inputs based on the Company’s assumptions. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.
Fair Value of Financial Instruments	The Company measures its cash equivalents and marketable securities at fair value. Money market funds are valued primarily using quoted market prices utilizing market observable inputs. The Company’s investments in commercial paper, U.S. Government and agency obligations and corporate debt securities are classified within Level 2 as the market inputs to value these instruments consist of market yields, reported trades and broker/dealer quotes. There were no transfers between Level 1 and 2 during the six months ended July 31, 2016 and the year ended January 31, 2016. Fair Value of Other Financial Instruments The carrying amounts of the Company’s accounts receivable, accounts payable, accrued liabilities and other liabilities approximate their fair value due to their short-term maturities. Based on quoted market prices as of July 31, 2016 and January 31, 2016, the fair value of the Convertible Senior Notes (Note 11) was approximately $51.0 million and $61.5 million, respectively, determined using Level 2 inputs as they are not actively traded in markets.
Income Taxes	Income Taxes The Company’s quarterly provision for income taxes is based on an estimated effective annual income tax rate. The Company’s quarterly provision for income taxes also includes the tax impact of certain unusual or infrequently occurring items, if any, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur. Income tax expense for the three months ended July 31, 2016 and 2015 was $30,000 and $42,000 respectively, and $40,000 and $83,000 for the six months ended July 31, 2016 and 2015, respectively. As of July 31, 2016, the income tax rate varies from the United States statutory income tax rate primarily due to valuation allowances in the United States and taxable income generated by the Company’s foreign wholly owned subsidiaries. The Company has a full valuation allowance against its net operating loss carryforwards and research and development credits for both federal and state purposes. Utilization of the net operating loss carry forwards and credits may be subject to substantial annual limitations due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended, and similar state provisions. The annual limitations may result in the expiration of net operating loss carryforwards and credits before utilization. The Company reviews the likelihood that it will realize the benefit of its deferred tax assets and, therefore, the need for valuation allowances on a quarterly basis. There is no corresponding income tax benefit recognized with respect to losses incurred and no corresponding income tax expense recognized with respect to earnings generated in jurisdictions with a valuation allowance. This causes variability in the Company’s effective tax rate. The Company intends to maintain the valuation allowances until it is more likely than not that the net deferred tax assets will be realized.
Operating segments	Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, the Company’s chief executive officer. The Company’s chief executive officer reviews financial information presented on a consolidated basis, accompanied by information about revenue by geographic region for purposes of allocating resources and evaluating financial performance. The Company has one business activity, and there are no segment managers who are held accountable for operations, operating results and plans for levels or components below the consolidated unit level. Accordingly, the Company considers itself to have a single reportable segment and operating unit structure.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 31, 2016
Fair Value Disclosures [Abstract]
Summary of Fair Value of Financial Assets and Liabilities	The following tables present the fair value of our financial assets and liabilities using the above input categories (in thousands): July 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 15,034 $ — $ — $ 15,034 Total cash equivalents 15,034 — — 15,034 Short-term investments: Corporate debt securities — 9,665 — 9,665 U.S. government and agency obligations 1,503 1,122 — 2,625 Commercial paper — — — — Total short-term investments 1,503 10,787 — 12,290 $ 16,537 $ 10,787 $ — $ 27,324 January 31, 2016 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 8,319 $ — $ — $ 8,319 Commercial paper — 6,505 — 6,505 Total cash equivalents 8,319 6,505 — 14,824 Short-term investments: Corporate debt securities — 30,386 — 30,386 U.S. government and agency obligations 1,503 8,671 — 10,174 Commercial paper — 1,498 — 1,498 Total short-term investments 1,503 40,555 — 42,058 $ 9,822 $ 47,060 $ — $ 56,882

Short-Term Investments (Tables)

Short-Term Investments (Tables)	6 Months Ended
	Jul. 31, 2016
Cash and Cash Equivalents [Abstract]
Short-Term Investments by Type of Instrument	The following is a summary of short-term investments by type of instrument (in thousands): July 31, 2016 Amortized Unrealized Unrealized Estimated Corporate debt securities $ 9,664 $ 2 $ (1 ) $ 9,665 U.S. government and agency obligations 2,622 3 — 2,625 $ 12,286 $ 5 $ (1 ) $ 12,290 January 31, 2016 Amortized Unrealized Unrealized Estimated Commercial paper $ 1,498 $ — $ — $ 1,498 Corporate debt securities 30,395 4 (13 ) 30,386 U.S. government and agency obligations 10,173 2 (1 ) 10,174 $ 42,066 $ 6 $ (14 ) $ 42,058
Amortized Cost and Fair Value of Short-Term Investments by Contractual Years-to-Maturity	The amortized cost and fair value of short-term investments held as of July 31, 2016 and April 30, 2016, by contractual years-to-maturity, are as follows (in thousands): July 31, January 31, 2016 2016 Amortized Fair Amortized Fair Due within one year $ 12,286 $ 12,290 $ 40,564 $ 40,555 Due within one to two years — — 1,502 1,503 $ 12,286 $ 12,290 $ 42,066 $ 42,058

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jul. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Components of Accounts Receivable, Net	The following table shows the components of accounts receivable, net (in thousands): July 31, January 31, Accounts receivable $ 2,771 $ 5,589 Allowance for doubtful accounts (37 ) (37 ) Allowance for sales returns (167 ) (244 ) $ 2,567 $ 5,308
Schedule of Inventory Components	The following table shows the components of inventory (in thousands): July 31, January 31, Raw materials $ 1,985 $ 3,785 Finished goods 7,809 8,216 $ 9,794 $ 12,001
Schedule of Components of Property and Equipment, Net	The following table shows the components of property and equipment, net (in thousands): July 31, January 31, Laboratory equipment $ 21,658 $ 20,190 Computer hardware and software 10,516 9,572 Office furniture 223 215 Leasehold improvements 651 651 33,048 30,628 Less: accumulated depreciation (24,503 ) (21,306 ) $ 8,545 $ 9,322
Components of Other Assets	The following table shows the components of other assets (in thousands): July 31, January 31, Purchased intellectual property $ 4,790 $ 5,294 Other 670 773 $ 5,460 $ 6,067
Schedule of Components of Accrued Liabilities	The following table shows the components of accrued liabilities (in thousands): July 31, January 31, Compensation and benefits $ 3,158 $ 6,161 Purchase commitments 832 117 Restructuring charges 1,118 955 Professional fees 1,146 1,123 Warranty 875 864 Accrued interest 1,700 1,700 Other 2,410 2,650 $ 11,239 $ 13,570
Schedule of Reconciliation of Product Warranty Liability	The following table is a reconciliation of the changes in the Company’s product warranty liability (in thousands): Six Months Ended July 31, 2016 2015 Balance, beginning of year $ 864 $ 1,262 Additions 172 325 Settlements (161 ) (641 ) Balance, end of period $ 875 $ 946
Schedule of Restructuring Charges	A summary of the restructuring activities is as follows (in thousands): Severance Excess facility Excess Other Total Liability Balance January 31, 2016 $ — $ 955 $ — $ — $ 955 Restructuring and other charges (recoveries) 971 (113 ) 396 216 1,470 Payments, net of receipts and other adjustments (769 ) (266 ) (121 ) (151 ) (1,307 ) Balance July 31, 2016 $ 202 $ 576 $ 275 $ 65 $ 1,118
Schedule of Reconciliation of Changes in Company's Accumulated Other Comprehensive Income	The following table is a reconciliation of the changes in the Company’s accumulated other comprehensive income (in thousands): Foreign Currency Net Unrealized Total Accumulated other comprehensive income as of January 31, 2016 $ 464 $ (8 ) $ 456 Other comprehensive income, net of tax, before reclassifications 81 12 93 Amounts reclassified, net of tax, from accumulated other comprehensive income — — — Net current-period other comprehensive income, net of tax 81 12 93 Accumulated other comprehensive income as of July 31, 2016 $ 545 $ 4 $ 549

Equity Award and Employee Com23

Equity Award and Employee Compensation Plans (Tables)	6 Months Ended
	Jul. 31, 2016
Equity [Abstract]
Summary of Stock Option Activity	The following table summarizes the stock option activity related to shares of common stock under the Company’s 2005, 2012 Plans as well as the Inducement Award (in thousands, except per share data): Outstanding Options Shares Number of Weighted- Weighted-Average Aggregate Balances, January 31, 2016 452 2,850 $ 13.48 6.85 $ 157 Additional shares authorized 1,233 — RSUs granted (257 ) — Recovery of shares from net settlement 2 — RSUs cancelled/forfeited 653 — Options granted (623 ) 623 2.61 Options exercised 50 (50 ) 0.56 Options forfeited 102 (102 ) 4.77 Balances, July 31, 2016 1,612 3,321 $ 11.82 6.59 $ 25 Options expected to vest - July 31, 2016 892 $ 8.60 $ 16 Options exercisable – July 31, 2016 1,975 $ 13.47 $ 4 (1) Aggregate intrinsic value is based on the common stock price at each respective date presented.
Summary of Restricted Stock Units Activity	The table below summarizes the RSU activity under the Company’s 2005 and 2012 Plans (in thousands, except per share data): Number Weighted- Aggregate Balance, January 31, 2016 2,736 $ 10.45 $ 9,741 RSUs granted 257 1.23 RSUs vested (423 ) 15.34 RSUs cancelled/forfeited (653 ) 10.48 Balance, July 31, 2016 1,917 $ 8.13 $ 3,116 (1) Aggregate intrinsic value is based on the common stock price at each respective date presented.

Segment Information and Custo24

Segment Information and Customer Concentration (Tables)	6 Months Ended
	Jul. 31, 2016
Segment Reporting [Abstract]
Schedule of Revenue and Property and Equipment, Net by Geographic Area	The following tables set forth revenue and property and equipment, net by geographic area (in thousands): Three Months Ended July 31, Six Months Ended July 31, Revenue: 2016 2015 2016 2015 Americas: United States $ 5,721 $ 9,857 $ 12,487 $ 18,031 Other Americas 25 29 53 61 5,746 9,886 12,540 18,092 Europe: United Kingdom 476 1,602 911 2,701 Other Europe 805 1,680 1,845 2,187 1,281 3,282 2,756 4,888 Asia Pacific: 476 2,135 1,920 4,424 $ 7,503 $ 15,303 $ 17,216 $ 27,404 Property and Equipment, Net: July 31, 2016 January 31, 2016 United States $ 8,398 $ 9,091 Europe 71 107 Asia Pacific 76 124 $ 8,545 $ 9,322

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jul. 31, 2016
Earnings Per Share [Abstract]
Schedule of Computation of Historical Basic and Diluted Net Loss Per Share	The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Numerator: Net loss $ (20,576 ) $ (24,382 ) $ (42,735 ) $ (50,884 ) Denominator: Weighted-average shares used to compute net loss per share, basic and diluted 25,061 24,147 24,919 24,011 Net loss per share, basic and diluted $ (0.82 ) $ (1.01 ) $ (1.71 ) $ (2.12 )
Schedule of Common Stock Equivalents Excluded from Computation of Diluted Net Loss Per Share	The following potential common stock equivalents that could potentially dilute net loss per share in the future were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive for the periods presented (in thousands): Three Months Ended July 31, Six Months Ended July 31, 2016 2015 2016 2015 Convertible senior notes (on an as converted basis) 5,338 5,338 5,338 5,338 Common stock warrants 41 41 41 41 Shares subject to outstanding common stock options and restricted stock units 5,238 5,235 5,238 5,235 10,617 10,614 10,617 10,614

Organization and Summary of S26

Organization and Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2016USD ($)$ / shares	Jul. 31, 2015USD ($)	Jul. 31, 2016USD ($)Head_Count$ / shares	Jul. 31, 2015USD ($)	Jan. 31, 2016USD ($)$ / shares
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items]
Accumulated deficit	$ (603,327)		$ (603,327)		$ (560,592)
Cash, cash equivalents and short-term investments	31,400		31,400
Net loss	$ 20,576	$ 24,382	42,735	$ 50,884	99,100
Cash flows from operations			$ 32,165	$ 37,814	$ 78,600
Common stock, par value | $ / shares	$ 0.0001		$ 0.0001		$ 0.0001
Q4 2016 Restructuring [Member]
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items]
Number of head count reductions | Head_Count			318
Q2 2017 Restructuring [Member]
Schedule Of Organization And Summary Of Significant Accounting Policies [Line Items]
Number of head count reductions | Head_Count			235

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
Cash equivalents:
Total cash equivalents	$ 15,034	$ 14,824
Short-term investments:
Total short-term investments	12,290	42,058
Total assets measured at fair value	27,324	56,882
Money Market Funds [Member]
Cash equivalents:
Total cash equivalents	15,034	8,319
Commercial Paper [Member]
Cash equivalents:
Total cash equivalents		6,505
Short-term investments:
Total short-term investments		1,498
Corporate Debt Securities [Member]
Short-term investments:
Total short-term investments	9,665	30,386
U.S. Government and Agency Obligations [Member]
Short-term investments:
Total short-term investments	2,625	10,174
Level 1 [Member]
Cash equivalents:
Total cash equivalents	15,034	8,319
Short-term investments:
Total short-term investments	1,503	1,503
Total assets measured at fair value	16,537	9,822
Level 1 [Member] | Money Market Funds [Member]
Cash equivalents:
Total cash equivalents	15,034	8,319
Level 1 [Member] | U.S. Government and Agency Obligations [Member]
Short-term investments:
Total short-term investments	1,503	1,503
Level 2 [Member]
Cash equivalents:
Total cash equivalents		6,505
Short-term investments:
Total short-term investments	10,787	40,555
Total assets measured at fair value	10,787	47,060
Level 2 [Member] | Commercial Paper [Member]
Cash equivalents:
Total cash equivalents		6,505
Short-term investments:
Total short-term investments		1,498
Level 2 [Member] | Corporate Debt Securities [Member]
Short-term investments:
Total short-term investments	9,665	30,386
Level 2 [Member] | U.S. Government and Agency Obligations [Member]
Short-term investments:
Total short-term investments	$ 1,122	$ 8,671

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - USD ($)	Jul. 31, 2016	Jan. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Transfer of assets measured at fair value between Level 1 and Level 2	$ 0	$ 0
Transfer of liabilities measured at fair value between Level 1 and Level 2	0	0
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fair value of convertible senior notes	$ 51,000,000	$ 61,500,000

Short-Term Investments - Short-

Short-Term Investments - Short-Term Investments by Type of Instrument (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 12,286	$ 42,066
Unrealized Gains	5	6
Unrealized Losses	(1)	(14)
Estimated Fair Value	12,290	42,058
Commercial Paper [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost		1,498
Estimated Fair Value		1,498
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	9,664	30,395
Unrealized Gains	2	4
Unrealized Losses	(1)	(13)
Estimated Fair Value	9,665	30,386
U.S. Government and Agency Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	2,622	10,173
Unrealized Gains	3	2
Unrealized Losses		(1)
Estimated Fair Value	$ 2,625	$ 10,174

Short-Term Investments - Amorti

Short-Term Investments - Amortized Cost and Fair Value of Short-Term Investments by Contractual Years-to-Maturity (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
Investments, Debt and Equity Securities [Abstract]
Amortized Cost, Due within one year	$ 12,286	$ 40,564
Amortized Cost, Due within one to two years		1,502
Amortized Cost	12,286	42,066
Fair Value, Due within one year	12,290	40,555
Fair Value, Due within one to two years		1,503
Fair Value	$ 12,290	$ 42,058

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Components of Accounts Receivable, Net (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
Receivables [Abstract]
Accounts receivable	$ 2,771	$ 5,589
Allowance for doubtful accounts	(37)	(37)
Allowance for sales returns	(167)	(244)
Accounts receivable, net	$ 2,567	$ 5,308

Balance Sheet Components - Sc32

Balance Sheet Components - Schedule of Inventory Components (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 1,985	$ 3,785
Finished goods	7,809	8,216
Inventory	$ 9,794	$ 12,001

Balance Sheet Components - Sc33

Balance Sheet Components - Schedule of Components of Property and Equipment, Net (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 33,048	$ 30,628
Less: accumulated depreciation	(24,503)	(21,306)
Property and Equipment, Net	8,545	9,322
Laboratory Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	21,658	20,190
Computer Hardware and Software [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	10,516	9,572
Office Furniture [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	223	215
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 651	$ 651

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Jan. 31, 2015
Balance Sheet Details [Line Items]
Depreciation expense	$ 2,100	$ 2,200	$ 4,055	$ 4,697
Licensed OEM software [Member]
Balance Sheet Details [Line Items]
Capitalized amount					$ 6,000
Minimum [Member] | Licensed OEM software [Member]
Balance Sheet Details [Line Items]
Estimated useful life of intangible assets			6 years
Minimum [Member] | Flash Storage Platform Product [Member]
Balance Sheet Details [Line Items]
Estimated useful life of product			6 years

Balance Sheet Components - Comp

Balance Sheet Components - Components of Other Assets (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016
Intangible Assets, Net (Excluding Goodwill) [Abstract]
Purchased intellectual property	$ 4,790	$ 5,294
Other	670	773
Other assets	$ 5,460	$ 6,067

Balance Sheet Components - Sc36

Balance Sheet Components - Schedule of Components of Accrued Liabilities (Detail) - USD ($) $ in Thousands	Jul. 31, 2016	Jan. 31, 2016	Jul. 31, 2015	Jan. 31, 2015
Payables and Accruals [Abstract]
Compensation and benefits	$ 3,158	$ 6,161
Purchase commitments	832	117
Restructuring charges	1,118	955
Professional fees	1,146	1,123
Warranty	875	864	$ 946	$ 1,262
Accrued interest	1,700	1,700
Other	2,410	2,650
Accrued liabilities	$ 11,239	$ 13,570

Balance Sheet Components - Sc37

Balance Sheet Components - Schedule of Reconciliation of Product Warranty Liability (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015
Payables and Accruals [Abstract]
Balance, beginning of year	$ 864	$ 1,262
Additions	172	325
Settlements	(161)	(641)
Balance, end of period	$ 875	$ 946

Balance Sheet Components - Sc38

Balance Sheet Components - Schedule of Restructuring Charges (Detail) $ in Thousands	6 Months Ended
	Jul. 31, 2016USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges, beginning balance	$ 955
Restructuring and other charges (recoveries)	1,470
Payments, net of receipts and other adjustments	(1,307)
Restructuring charges, ending balance	1,118
Severance and Related Charges [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges (recoveries)	971
Payments, net of receipts and other adjustments	(769)
Restructuring charges, ending balance	202
Excess Facility Charges [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring charges, beginning balance	955
Restructuring and other charges (recoveries)	(113)
Payments, net of receipts and other adjustments	(266)
Restructuring charges, ending balance	576
Excess Commitments [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges (recoveries)	396
Payments, net of receipts and other adjustments	(121)
Restructuring charges, ending balance	275
Other Restructuring Charges [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and other charges (recoveries)	216
Payments, net of receipts and other adjustments	(151)
Restructuring charges, ending balance	$ 65

Balance Sheet Components - Sc39

Balance Sheet Components - Schedule of Reconciliation of Changes in Company's Accumulated Other Comprehensive Income (Detail) $ in Thousands	6 Months Ended
	Jul. 31, 2016USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, Beginning balance	$ (54,852)
Accumulated other comprehensive income, Ending balance	(90,242)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, Beginning balance	464
Other comprehensive income, net of tax, before reclassifications	81
Amounts reclassified, net of tax, from accumulated other comprehensive income	0
Net current-period other comprehensive income, net of tax	81
Accumulated other comprehensive income, Ending balance	545
Net Unrealized Gain (Loss) on Short-Term Investments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, Beginning balance	(8)
Other comprehensive income, net of tax, before reclassifications	12
Amounts reclassified, net of tax, from accumulated other comprehensive income	0
Net current-period other comprehensive income, net of tax	12
Accumulated other comprehensive income, Ending balance	4
AOCI Attributable to Parent [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Accumulated other comprehensive income, Beginning balance	456
Other comprehensive income, net of tax, before reclassifications	93
Amounts reclassified, net of tax, from accumulated other comprehensive income	0
Net current-period other comprehensive income, net of tax	93
Accumulated other comprehensive income, Ending balance	$ 549

Equity Award and Employee Com40

Equity Award and Employee Compensation Plans - Additional Information (Detail)	Jun. 30, 2016	Feb. 01, 2016shares	Jul. 31, 2016shares	Jul. 31, 2015shares	Jul. 31, 2016USD ($)Period$ / sharesshares	Jun. 30, 2016USD ($)	Jul. 31, 2015shares	Jul. 06, 2016shares	Jan. 31, 2016shares	Jan. 31, 2015shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Reverse stock split ratio	0.25
Common stock, shares authorized			250,000,000		250,000,000			250,000,000	250,000,000
Increased share reserve		1,233,017
Shares authorized		5,321,072
Weighted average grant date fair value of options granted | $ / shares					$ 2.34
Total intrinsic value of options exercised | $					$ 41,000
Aggregate intrinsic value of vested RSUs | $						$ 400,000
Options and restricted shares of common stock granted to non-employees			0	0	0		0
2012 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share awards and options expiration period					7 years
Share awards and options vesting period					4 years
Shares authorized									4,088,055
Inducement Grant Stock Option Agreements [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares related to options issued										1,000,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Stock Purchase Plan, share price as percentage of fair value					85.00%
Shares authorized			549,351		549,351
Employee Stock Purchase Plan, shares have been reserved for issuance under the 2012 Purchase Plan					250,000
Employee Stock Purchase Plan, maximum percentage of annual salary that an employee is permitted to utilize			15.00%		15.00%
Employee Stock Purchase Plan, number of offering periods | Period					2
Minimum [Member] | 2012 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Stock Purchase Plan, share price as percentage of fair value					100.00%
Maximum [Member] | Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Stock Purchase Plan, duration of offering period					24 months
Employee Stock Purchase Plan, frequency of purchase date					6 months
Previously Reported [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized								1,000,000,000
Employee 401(k) Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee compensation plan, percentage of maximum contribution by employees					90.00%

Equity Award and Employee Com41

Equity Award and Employee Compensation Plans - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands	Feb. 01, 2016	Jul. 31, 2016	Jan. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Available for Grant, Beginning balance	452,000	452,000
Shares Available for Grant, RSUs granted		(257,000)
Shares Available for Grant, RSUs cancelled/forfeited		653,000
Shares Available for Grant, Ending balance		1,612,000	452,000
Number of Options, Beginning balance	2,850,000	2,850,000
Number of Options, Shares authorized	1,233,017
Number of Options, Options granted		623,000
Number of Options, Options exercised		50,000
Number of Options, Options forfeited		(102,000)
Number of Options, Ending balance		3,321,000	2,850,000
Number of Options, Options expected to vest		892,000
Number of Options, Options exercisable		1,975,000
Weighted-Average Exercise Price, Beginning balance	$ 13.48	$ 13.48
Weighted-Average Exercise Price, Options granted		2.61
Weighted-Average Exercise Price, Options exercised		0.56
Weighted-Average Exercise Price, Options forfeited		4.77
Weighted-Average Exercise Price, Ending balance		11.82	$ 13.48
Weighted-Average Exercise Price, Options expected to vest		8.60
Weighted-Average Exercise Price, Options exercisable		$ 13.47
Weighted-Average Remaining Contractual Life (in years)		6 years 7 months 2 days	6 years 10 months 6 days
Aggregate Intrinsic Value, Beginning balance		$ 25	$ 157
Aggregate Intrinsic Value, Options expected to vest		16
Aggregate Intrinsic Value, Options exercisable		$ 4
Shares Available for Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Options, Shares authorized		1,233,000
Number of Options, Options granted		623,000
Number of Options, Options exercised		50,000
Shares Available for Grant, Options forfeited		102,000
Restricted Stock Units (RSUs) [Member] | Shares Available for Grant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Available for Grant, RSUs granted		(257,000)
Shares Available for Grant, Recovery of RSUs from net settlement		2,000
Shares Available for Grant, RSUs cancelled/forfeited		653,000

Equity Award and Employee Com42

Equity Award and Employee Compensation Plans - Summary of Restricted Stock Units Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jul. 31, 2016	Jan. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Number of RSUs Outstanding, Beginning balance	2,736
Number of RSUs Outstanding, granted	257
Number of RSUs Outstanding, vested	(423)
Number of RSUs Outstanding, cancelled/forfeited	(653)
Number of RSUs Outstanding, Ending balance	1,917
Weighted-Average Grant Date Fair Value, Beginning balance	$ 10.45
Weighted-Average Grant Date Fair Value, granted	1.23
Weighted-Average Grant Date Fair Value, vested	15.34
Weighted-Average Grant Date Fair Value, cancelled/forfeited	10.48
Weighted-Average Grant Date Fair Value, Ending balance	$ 8.13
Aggregate Intrinsic Value	$ 3,116	$ 9,741

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation of non-employee awards	$ 0	$ 0	$ 200,000	$ 200,000
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized stock-based compensation expense			0
Stock-based compensation not yet recognized	9,400,000		9,400,000
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation not yet recognized	$ 4,000,000		$ 4,000,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Income Tax Disclosure [Abstract]
Income tax expense	$ 30,000	$ 42,000	$ 40,000	$ 83,000
Unrecognized tax benefits that would affect the effective tax rate	$ 0		$ 0

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Jul. 31, 2016USD ($)	Nov. 26, 2013Lawsuits	Jul. 31, 2016USD ($)	Jul. 31, 2015USD ($)	Jul. 31, 2016USD ($)	Jul. 31, 2015USD ($)	Apr. 30, 2016USD ($)
Loss Contingencies [Line Items]
Number of lawsuits filed | Lawsuits		4
Class action filing date					Nov. 26, 2013
Settlement fund					$ 7,500,000
Operating lease payment in fiscal year 2017	$ 2,300,000		$ 2,300,000		2,300,000
Operating lease payment thereafter	0		0		$ 0
Outstanding purchase commitments	2,800,000
Advertising Commitment description					In June 2012, the Company entered into an agreement with the Forty Niners SC Stadium Company LLC, which was amended in April 2014. As part of the amended agreement, the Company will receive advertising and related benefits at the stadium in Santa Clara, California.
Advertising commitment	14,000,000		14,000,000		$ 14,000,000
Forty Niners SC Stadium Company LLC [Member]
Loss Contingencies [Line Items]
Advertising expenses recognized			300,000	$ 300,000	600,000	$ 600,000
Indemnification Agreement [Member]
Loss Contingencies [Line Items]
Liabilities recorded for indemnification agreements	$ 0		$ 0		$ 0		$ 0

Segment Information and Custo46

Segment Information and Customer Concentration - Additional Information (Detail)	Jul. 31, 2016Customer	Jan. 31, 2016Customer	Jul. 31, 2016Customer	Jul. 31, 2015Customer	Jul. 31, 2016CustomerSegment	Jul. 31, 2015Customer
Segment Reporting Information [Line Items]
Number of reportable segment | Segment					1
Number of operating segment | Segment					1
Number of customers			1	1	1	1
Number of customer accounted for accounts receivable	3	3
Largest Customers [Member]
Segment Reporting Information [Line Items]
Number of single customer accounted for revenue			5	5	5	5
Customer Concentration Risk [Member] | Total Revenue [Member] | Customer One [Member]
Segment Reporting Information [Line Items]
Percentage of customers represented			21.00%	30.00%	14.00%	18.00%
Customer Concentration Risk [Member] | Total Revenue [Member] | Customer Two [Member]
Segment Reporting Information [Line Items]
Percentage of customers represented					11.00%
Customer Concentration Risk [Member] | Total Revenue [Member] | Largest Customers [Member]
Segment Reporting Information [Line Items]
Percentage of customers represented			36.00%	48.00%	34.00%	36.00%
Customer Concentration Risk [Member] | Gross Accounts Receivable [Member] | Customer One [Member]
Segment Reporting Information [Line Items]
Percentage of customers represented	18.00%	20.00%
Customer Concentration Risk [Member] | Gross Accounts Receivable [Member] | Customer Two [Member]
Segment Reporting Information [Line Items]
Percentage of customers represented	14.00%	20.00%
Customer Concentration Risk [Member] | Gross Accounts Receivable [Member] | Customer Three [Member]
Segment Reporting Information [Line Items]
Percentage of customers represented	10.00%	10.00%

Segment Information and Custo47

Segment Information and Customer Concentration - Schedule of Revenue and Property and Equipment by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Jan. 31, 2016
Segment Reporting Information [Line Items]
Total Revenue	$ 7,503	$ 15,303	$ 17,216	$ 27,404
Property and equipment, net	8,545		8,545		$ 9,322
United States [Member]
Segment Reporting Information [Line Items]
Total Revenue	5,721	9,857	12,487	18,031
Property and equipment, net	8,398		8,398		9,091
Other Americas [Member]
Segment Reporting Information [Line Items]
Total Revenue	25	29	53	61
Americas [Member]
Segment Reporting Information [Line Items]
Total Revenue	5,746	9,886	12,540	18,092
United Kingdom [Member]
Segment Reporting Information [Line Items]
Total Revenue	476	1,602	911	2,701
Other Europe [Member]
Segment Reporting Information [Line Items]
Total Revenue	805	1,680	1,845	2,187
Europe [Member]
Segment Reporting Information [Line Items]
Total Revenue	1,281	3,282	2,756	4,888
Property and equipment, net	71		71		107
Asia Pacific [Member]
Segment Reporting Information [Line Items]
Total Revenue	476	$ 2,135	1,920	$ 4,424
Property and equipment, net	$ 76		$ 76		$ 124

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Computation of Historical Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015	Jan. 31, 2016
Numerator:
Net loss	$ (20,576)	$ (24,382)	$ (42,735)	$ (50,884)	$ (99,100)
Denominator:
Weighted-average shares used to compute net loss per share, basic and diluted	25,061	24,147	24,919	24,011
Net loss per share, basic and diluted	$ (0.82)	$ (1.01)	$ (1.71)	$ (2.12)

Net Loss Per Share - Schedule49

Net Loss Per Share - Schedule of Common Stock Equivalents Excluded from Computation of Diluted Net Loss Per Share (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 31, 2016	Jul. 31, 2015	Jul. 31, 2016	Jul. 31, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total common stock equivalents excluded from computation of diluted net loss per share	10,617	10,614	10,617	10,614
Convertible Senior Notes (on an as Converted Basis) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total common stock equivalents excluded from computation of diluted net loss per share	5,338	5,338	5,338	5,338
Common Stock Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total common stock equivalents excluded from computation of diluted net loss per share	41	41	41	41
Shares Subject to Outstanding Common Stock Options and Restricted Stock Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Total common stock equivalents excluded from computation of diluted net loss per share	5,238	5,235	5,238	5,235

Convertible Senior Notes and 50

Convertible Senior Notes and Line of Credit - Additional Information (Detail)	Oct. 31, 2014USD ($)	Sep. 19, 2014USD ($)d$ / shares	Apr. 30, 2016USD ($)	Oct. 31, 2014USD ($)	Jul. 31, 2016USD ($)	Jan. 31, 2016USD ($)
Debt Instrument [Line Items]
Convertible senior notes, net					$ 118,089,000	$ 117,464,000
Silicon Valley Bank [Member]
Debt Instrument [Line Items]
Credit facility			$ 10,000,000
Line of credit facility, expiration date			May 1, 2017	Oct. 24, 2016
Silicon Valley Bank [Member] | Secured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit facility	$ 20,000,000			$ 20,000,000	$ 7,100,000	$ 13,400,000
Line of credit facility, interest rate description					Borrowings under this facility will bear interest at a rate per annum of either (a) the sum of (i) the Eurodollar rate plus (ii) 5.00%, or (b) the sum of (i) ABR plus (ii) 2.00%. The Company had $7.1 million and $13.4 million outstanding on this facility at July 31, 2016 and January 31, 2016, respectively.
Line of credit agreement repayment and termination date					2016-08
Silicon Valley Bank [Member] | Secured Revolving Credit Facility [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Line of credit facility, interest rate spread	5.00%
Silicon Valley Bank [Member] | Secured Revolving Credit Facility [Member] | ABR [Member]
Debt Instrument [Line Items]
Line of credit facility, interest rate spread	2.00%
Convertible Senior Notes [Member]
Debt Instrument [Line Items]
Notes issued, principal amount		$ 120,000,000
Convertible notes, issuance date					Sep. 19, 2014
Convertible notes, maturity date					Oct. 1, 2019
Proceeds from notes issued net of offering expenses		$ 115,400,000
Convertible notes, interest rate		4.25%
Convertible notes, periodicity of payment					Semi-annually
Convertible notes, redemption start date					Oct. 1, 2017
Convertible notes, redemption description					The Company may redeem the Notes, at its option, in whole or in part on or after October 1, 2017, if the last reported sale price per share of its common stock equals or exceeds 130% of the applicable conversion price for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on the trading day immediately prior to the date on which the Company delivers notice of the redemption.
Convertible notes, percentage of applicable conversion price required for redemption		130.00%
Number of trading days | d		20
Number of consecutive trading days		30 days
Convertible notes, initial conversion rate | $ / shares		$ 22.48
Convertible notes, common stock conversion rate per $1,000 principal amount					44.4840
Convertible notes, principal amount per conversion					$ 1,000
Convertible senior note repurchase price as percentage of principal amount					100.00%
Indebtedness description					During the time that the Notes are outstanding, the Company may not at any time incur any indebtedness other than permitted debt, which is defined as: (a) revolving debt secured by the Company’s accounts receivable and the proceeds therefrom in a principal amount not to exceed $50 million; (b) unsecured indebtedness (including the Notes) in a principal amount not to exceed (when combined with any indebtedness incurred under clause (c) below) $150 million; (c) secured indebtedness secured by the Company’s intellectual property in a principal amount not to exceed (when combined with any indebtedness incurred under clause (b) above) $150 million; and (d) unsecured subordinated indebtedness in a principal amount not to exceed $50 million. Furthermore, the Company may incur indebtedness if (a) the Company is not in default and such additional debt would not put it into default and (ii) the consolidated leverage ratio, as defined, after taking the additional debt into account does not exceed 5:1.
Convertible senior notes, net					$ 120,000,000
Debt instrument term					5 years
Convertible Senior Notes [Member] | Maximum [Member]
Debt Instrument [Line Items]
Notes issued, principal amount					$ 50,000,000
Consolidated leverage ratio					500.00%
Convertible Senior Notes [Member] | Maximum [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Notes issued, principal amount					$ 150,000,000
Convertible Senior Notes [Member] | Maximum [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Notes issued, principal amount					150,000,000
Convertible Senior Notes [Member] | Maximum [Member] | Secured Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Notes issued, principal amount					$ 50,000,000
Convertible Senior Notes [Member] | Over-Allotment Option [Member]
Debt Instrument [Line Items]
Notes issued, principal amount		$ 15,000,000