NEW YORK (TheStreet) -- Fusion-IO (FIO) hasn't had a great 2013. The technology company has said goodbye to its CFO and sales chief, seen numerous ratings cuts from investment firms, and reported several quarters of disappointing guidance. Since January, the stock has tumbled 58.6%.
To add to its woes, on Tuesday UBS downgraded Fusion-IO to "neutral" from "buy," and slashed its price target to $11 from $15 in the process.
"Following the management change, we had thought the stock price decline discounted Fusion's challenges, but that proved incorrect," said analyst Steven Milunovich in the report. "We worry the window for Fusion to succeed is closing."
UBS said Fusion's foothold in PCI card production is slipping as new rivals emerge and that redeveloping any product will take another six to nine months to pay off.
"PCI cards have a place, but larger vendors such as EMC (EMC) and Western Digital (WD) ... can drive margins down, perhaps below the low-50s gross margin that Fusion currently is projecting," wrote Milunovich.
Erasing some of the uncertainty surrounding Fusion's future, the Salt Lake City-based business has hired Ian Whiting as its sales chief. Whiting will leave a similar role at networking equipment maker Riverbed (RVBD) for the position. The company is still searching for a replacement CFO.
By mid-afternoon, Fusion shares had tumbled 5.3% to $9.48.
TheStreet Ratings team rates Fusion-IO Inc as a Sell with a ratings score of D. The team has this to say about their recommendation:
"We rate Fusion-IO Inc (FIO) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."