Fusion-IO Shares Tumble on Outlook (FIO)
Shares of Fusion-IO Inc. (NYSE: FIO) tumbled in trading on Thursday after the company lowered its revenue forecast. The company also reported its second-quarter financial results.
- Fusion-IO lowers revenue forecast due to delays in orders from Apple Inc. and Facebook Inc.
- The downward revision prompts many analysts to downgrade the stock
- FIO shares hit 52-week low on Thursday
For the full fiscal year 2013, Fusion-IO expects revenue to be between $420 million and $440 million, down from previous forecast of $521 million to $539 million. For the third quarter, the company expects revenue of $80 million, which is significantly below the consensus forecast of $137.1 million.
In a conference call with analysts, CEO David A. Flynn said that the change in guidance is the result of a shift in timing of bulk purchases from the company’s two key accounts specifically for the next two quarters.
Following the downward revision, Andrew Nowinski, analyst at Piper Jaffray downgraded FIO shares from Overweight to Neutral. Nowinski also lowered the price target on FIO shares from $33 to $18. J.P. Morgan and Credit Suisse also lowered their rating on the FIO stock following the revenue forecast.
Fusion-IO also reported its second-quarter financial results. For the quarter ended December 31, 2012, the company reported record revenue of $120.6 million, up 43% over the same period in the previous year. The company’s net income for the quarter was $1.7 million, or $0.02 per share, compared to a net loss of $5.7 million, or $0.07 per share reported for the same period in the previous year. Non-GAAP net income for the quarter was $13.7 million, or $0.13 per share.
FIO shares fell to a 52-week low of $16.50 on Thursday before ending the day 12.99% lower at $17.48 on above average volume of 18.02 million.
About Fusion-IO Inc.
Salt Lake City, Utah-based Fusion-IO provides datacenter solutions.