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Shares of Fusion-io (NYSE:FIO) were the absolute winner in Friday's trading session. The provider of data computing solutions reported a strong set of quarterly results on Thursday after the market close.

Fourth Quarter Results

Fusion-io reported revenues of $106.6 million for its fiscal fourth quarter of 2012. Revenues were up 49% compared to last year and up 13% compared to the third quarter. The company reported a net loss of $2.4 million, or $0.03 per share. Last year, the company reported a fourth quarter profit of $5.8 million, or $0.06 per share.

Non-GAAP gross margins came in at 57.6%, with non-GAAP earnings per share coming in at $0.35 per share. This compares to non-GAAP earnings of $0.20 per share last year.

Fusion-io sells hard drives and software for servers and data centers to big companies like IBM, HP, Apple, Facebook and Dell.

CEO and Chairman David Flynn commented on the results:

"Fusion-io delivered another record revenue quarter with great execution across the company, and we are pleased with the momentum we have going into the next fiscal year. We believe we are still in the early stages of demonstrating the transformative potential of software defined storage solutions that deliver great performance and efficiency for customer at a fraction of the cost of legacy systems."

Outlook

For the first quarter of 2013, revenues are expected to increase modestly compared to the fourth quarter. Non-GAAP gross margins are expected to come in between 56% and 58%. Non-GAAP operating margins are expected around 10%. This compares to an operating margin of 0.9% in the fourth quarter.

For the full year of 2013, the company expects 45%-50% revenue growth. This translates into revenues of $521 million to $539 million. Non-GAAP gross margins are expected within the 56%-58% range. Non-GAAP operating margins are expected to come in around 12%. The company expects to have 114 million shares outstanding by the end of its fiscal year of 2013.

Valuation

Fusion-io ended its fiscal 2012 with $321 million in cash and equivalents. The company operates without any significant debt, resulting in a comfortable net cash position. For the full year of its fiscal 2012, it reported revenues of $359.3 million, up 82% compared to the full year of 2011. The company reported a net loss of $5.6 million, compared to a net income of $4.6 million last year.

Currently, the market values Fusion-io at $2.5 billion, which values the operating assets of the company around $2.2 billion. This values the company at roughly 6 times annual revenues.

Currently, Fusion-io does not pay a dividend.

Investment Thesis

Shares of Fusion-io have returned 11% so far this year. In today's trading session, Fusion-io ended 28% higher. Shares of the data-centric computing solution provider peaked at $32 in March this year. From that point in time, shares slid to lows of $17 in June. Shares fell amidst worries about a global economic slowdown and the fact that the company issued a conservative outlook for the fourth quarter.

After today's jump, shares trade at levels not seen since April of this year. The company reported 13% sequential growth in revenues in the fourth quarter, surpassing the company's own forecast of flat revenue growth. The strong results are reassuring investors, given the worries about the economy and increased competition. One particular worry among investors is the fact that Apple (NASDAQ:AAPL) and Facebook (NASDAQ:FB) still make up over 50% of Fusion's revenues.

Investors are very satisfied with the results, despite the risks of the revenue concentration. The strong final quarter and very strong revenue guidance for its fiscal 2013 provided a strong boost for the stock.

Long-term investors might be able to find value in Fusion-io, especially if consolidation in the industry will take place.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Fusion-io - Strong Final Quarter And Very Strong Outlook