NEW YORK (TheStreet) -- Fusion-IO (FIO) popped in Thursday trading following a better-than-expected earnings report issued after the bell a day earlier. By mid-morning, shares had soared 12.9% to $10.63.
The big-data solutions company reported a net loss for the December-ended quarter of 6 cents a share, compared to net loss expectations of 10 cents a share according to Yahoo! Finance. Revenue of $94.5 million, though a 21.6% year-over-year decline, beat analysts' expectations by $5.2 million. Total sales jumped nearly 10% from the first quarter's $86.3 million in revenue.
"We delivered 10% revenue growth over the prior quarter while maintaining a healthy gross margin due to a strong mix of enterprise customers in the quarter. We added $19 million in cash during the second quarter, bringing our total of cash and cash equivalents to $244 million. We believe these results underscore a solid foundation from which we can continue to focus on capturing the opportunity flash creates for data center transformation," said chief financial officer Ted Hull in a statement.
The Salt Lake City-based business issued soft guidance for the third quarter, forecasting revenue in-line to slightly up sequentially. Analysts had expected 4% sales growth to $97.85 million for the March-ended quarter.
In a report released Thursday, Pacific Crest Securities said it saw encouraging signs of a Fusion turnaround. The analyst firm reiterated its "outperform" rating with a price target of $14.
"The March guidance, which indicated revenue would be flat to slightly up from the $94.5 million the company just reported, implies that demand for its PCIe flash cards has begun to stabilize. This implies that revenue should return to growth for the first time in a year. We see revenue stabilization as an encouraging sign that the new management team is executing a turnaround and that the competitive threat over the past year has yet to materially alter Fusion-io's ability to grow the enterprise segment," wrote analysts in the report.