Fusion-io Shares Plunge 19% On Wider Q4 Loss, Weak Sales Outlook

(RTTNews) - Shares of Fusion-io, Inc. (FIO) plunged 19 percent in extended trade on Wednesday after the storage drive maker provided sales guidance for the first quarter and full-year 2014, well below Street view.

The company also reported a loss for the fourth quarter that sharply widened from last year, reflecting higher expenses and a revenue decline. Adjusted loss per share matched analysts' expectations, while quarterly sales missed their estimates.

The company in early May named director Shane Robison as the new chairman, President and CEO to co-founder David Flynn. Robison is a director of the Fusion-io Board of Directors since December 2011.

The Salt Lake, Utah-based company reported a net loss of $23.84 million or $0.24 per share for the second quarter, sharply wider than $2.39 million or $0.03 per share in the prior-year quarter.

Excluding items, adjusted net loss for the quarter was $3.03 million or $0.03 per share, compared to adjusted net income of $9.85 million or $0.09 per share in the year-ago quarter.

On average, 19 analysts polled by Thomson Reuters expected the company to report a loss of $0.03 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter edged down to $106.05 million from $106.60 million in the same quarter last year, and missed twenty-four Wall Street analysts' consensus estimate of $110.18 million.

Gross margin for the quarter improved 50 basis points to 58.0 percent from last year's 57.5 percent. Total operating expenses were $85.32 million, up from $62.28 million from last year.

For fiscal 2013, the company reported a net loss of $38.23 million or $0.40 per share, wider than $5.58 million or $0.06 per share in the prior year. Excluding items, adjusted net income for the quarter was $22.40 million or $0.21 per share, compared to $37.48 million or $0.35 per share in the year ago. Revenue for the full year grew 20 percent to $432.39 million from $359.35 million in the previous year.

Street was looking for full-year 2013 earnings of $0.21 per share, on annual revenues of $437.79 million.

Looking ahead to the first quarter of fiscal 2014, Fusion-io forecasts a net loss on projected revenues between $80 million and $90 million, while analysts are expecting $123.83.

For fiscal 2014, the company expects revenues to grow about 20 percent, implying revenues of about $441.22 million, based on $359.35 million reported for fiscal 2013. Street is currently looking for full-year 2104 revenues of $563.97 million.

"We exited fiscal 2013 with a significantly more diversified customer and product base, which we believe provides a sound basis for business expansion going forward. In fiscal 2014, we are intent on improving how we leverage our partnerships and introduce new products to the market while continuing to invest in our technology leadership," CFO Dennis Wolf said in a statement.

FIO closed Wednesday's regular trading session at $14.90, down $0.51 or 3.31% on a volume of 6.74 million shares. The stock plunged a further $2.81 or 18.86% in after-hours trading.