This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Fusion-io Shares Rise on Debut Beat

Stocks in this article: FIO

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

>To submit a news tip, send an email to:

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,090.33 +8.45 0.41%
NASDAQ 4,810.3630 +36.8910 0.77%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs