Density Dynamics: “we might have a customer”

Just a month ago, I wrote about Density Dynamics’ product, the RamFlash drive; at the time, I wrote that “it appears to be too little, too late”. It appears as though there is at least some hope for them; they published a press release claiming they have found a customer that is testing their drives. I don’t normally post entire press releases, but since this one is so short I’ll make an exception:

Density Dynamics, a majority owned subsidiary of Speedus Corp. (NASDAQ:SPDE) , announced today it has received a 2nd payment from Wachovia Corporation related to testing of its high performance DRAM based solid state drives. The $50,000 payment brings the total received from Wachovia to approximately $200,000. Discussions for implementation of Density’s next generation of RamFlash SSD devices are ongoing.

Whether or not this is good news remains to be seen; the positive news is that there is a potential market. Pessimists on the other hand would say that it’s a bad sign when a company feels the need to publish a press release about a customer that’s testing your kit.

I’m sure we’ll see one or two analysts dig deeper into their financials shortly; but a quick glance at the stock values for their parent company Speedus shows that investors are starting to believe in the product. On the day they announced the Underwriters Labs certification, the Speedus stock more than tripled in value, going up from $0.81 to $3.11 per share within a day. It rose again when a new CFO was announced; since then, the stock price has been going down again. Before today’s announcement it was at $2.60, rising slightly to $2.90 at the time of the press release.

Related posts:

1. Density Dynamics: too little, too late?
2. New Density Dynamics product: JetX10
3. Dataram to compete against Density Dynamics?
4. Isilon adding SSD options to scale-out NAS
5. Toshiba upgrades 2.5 inch drives