STEC's outlook is for fourth quarter revenues of $101m to $103m, slightly down on previous expectations. Shares are currently trading at $23.15, capitalising the company at $1.15bn, far below the early September peak when the shares sold for $41.84.

What's happened is that, in effect, the enterprise SSD market has suddenly transitioned to a near-mature phase. The early rocket-like glory days of growth are ending as the short-stroked, low-hanging hard drive fruit has been plucked and sales require more effort now.

Combine that with more competition and STEC's margins and overall sales revenues are under threat. It's a recipe for more modest expectations of growth prospects at what has been a very fortunately-placed company. STEC's growth is almost certainly bound to continue, just at a more modest clip. ®