Fusion-IO Earnings: Downbeat Forecast Steals Quarterly Thunder

Fusion-IO, Inc. (NYSE:FIO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. Despite the strong report, Fusion-IO said it expects to report revenue of $80 million, while analysts surveyed by FactSet forecast sales of $137.1 million. Shares are down 18.02%.

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Fusion-IO, Inc. Earnings Cheat Sheet

Results: Net income increased to $1.7 million (13 cents per diluted share) in the quarter versus a net loss of $5.71 million in the year-earlier quarter.

Revenue: Rose 43.35% to $120.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Fusion-IO, Inc. reported adjusted net income of 13 cents per share. By that measure, the company beat the mean analyst estimate of $0.08. It beat the average revenue estimate of $120.31 million.

Quoting Management: “The shift to the cloud from traditional IT, and the shift away from mechanical storage to solid state, are twin catalysts to our business. We are well-positioned to capture opportunities as a growing number of customers decide to migrate away from legacy storage and move to the cloud using new memory architectures,” said David Flynn, Fusion-io Chairman and CEO…

…As early adopters of our technology move to all-flash architectures, the sheer scale of this transformation can lead to lumpiness in deployments quarter to quarter as customers learn to extract the full potential of flash to drive even greater efficiency in their infrastructure.”

Key Stats:

Revenue increased 2.1% from $118.12 million in the previous quarter. Net income decreased 56.74% from $3.93 million in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.09 and has not changed. For the current year, the average estimate is a profit of $0.41, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)