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TheStreet Open House

Fusion-io Shares Rise on Debut Beat

This story has been updated with Fusion-io conference call comments, company's latest share price, and clarification of net income estimates.

  • Fusion-io (FIO), the newly-public data storage specialist reported earnings of 15 cents a share on revenue of $71.7 million for its fiscal fourth quarter.
  • Analysts expected earnings per share of 14 cents on sales of $70.6 million.
  • Fusion-io, whose shares are up more than 5% since going public in June, saw its stock close down $4.50, or 16%, at $23.62 Thursday, amidst a broader market selloff. After earnings, its shares climbed $1.82 cents, or 7.71%, to $25.44 in the after-hours session.
  • This marks the first earnings report for the company since its NYSE debut.
  • Revenue for fiscal 2011 was $197.2 million, compared to analysts' forecast of $190.88 million.
  • On a GAAP basis, Fusion-IO's fiscal 2011 net income was $4.6 million, compared to a net loss of $32.5 million in the prior year. Analysts were looking for net income of $10.1 million
  • Excluding items, Fusion-io reported fiscal 2011 net income of $16.3 million, above analysts' forecast of $13 million.

SALT LAKE CITY ( TheStreet) -- Hot on the heels of its successful IPO Fusion-io (FIO) posted strong fourth-quarter numbers and guidance after market close on Thursday, and also announced the acquisition of privately-held virtualization specialist IO Turbine.

"We believe this technology will expand our addressable market," said Fusion-io CEO David Flynn, during a conference call to discuss the results. Fusion-io, he added, plans to sell IO Turbine's technology as a bundled solution.

Fusion-io reported its fourth-quarter results after market close.

The storage specialist, which counts Apple (AAPL) and Facebook amongst its key customers, is clearly carving out a strong niche within corporate data centers. There has, for example, been speculation that the company could have as many as 10 other large accounts in the pipeline.

"We have an active pipeline of strategic customers," said Flynn, in response to an analyst's question, but did not reveal specific numbers. This pipeline, however, has fuelled fuel Fusion-io's robust guidance, he added.

For the first quarter, Fusion-io expects revenue between $60 million and $65 million. The company also forecast year-over-year revenue growth of 40% for fiscal 2012.

Flynn also briefly discussed the company's deals with Apple and Facebook. The social networking phenomenon's relationship with Facebook goes back to Fusion-io's infancy, he explained, but noted that the deal with Apple "happened very quickly".

Dennis Wolf, Fusion-io's CFO, confirmed that Apple, Facebook, and, "through fulfillment," HP (HPQ), are all 10% customers.

Wolf also explained that large, or "strategic", customers accounted for about 65% of the company's revenue during the fourth quarter, down for 72% in the prior quarter.

Fusion-io, which boasts Apple co-founder and occasional reality TV star Steve Wozniak as its chief scientist, exited fiscal 2011 with $220 million in cash and cash equivalents.

-- Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com.

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