Fusion-io Gross Margins: You Ain't Seen Nothin' Yet [View article]
Gross Margins came in above 58% as expected. Longer term I see the following factors improving margins;
-automation of manufacturing operations: this involves improving the automation and testing to allow them to better meet customer demand without trading off core v strategic orders. -Software revenues, ION, IO Turbine and VSL. -Nand Flash relationships
Its too early to tell when these factors will lead to margin expansion above 58%, I will keep an eye on this. Will also need to keep an eye on VMW as potential competition, although so far FIO is in front.
Fusion-io: An Expensive Stock But Compelling Relative Value [View article]
Please don't compare fio and ocz. Ocz doesn't compete in the enterprise market. Would aapl and fb trust anyone else for their mission critical data - no chance. So to be clear fusion-io leads the enterprise market and receives no competition from the consumer grade provider ocz. Furthermore if you did your homework you would realize fio is a software company, and the software allows them to provide a system sale... Please also don't compare fio gross margins of 56-58% with ocz consumer margins..
Fusion-io Gross Margins: You Ain't Seen Nothin' Yet [View article]
Longer term I see the following factors improving margins;
-automation of manufacturing operations: this involves improving the automation and testing to allow them to better meet customer demand without trading off core v strategic orders.
-Software revenues, ION, IO Turbine and VSL.
-Nand Flash relationships
Its too early to tell when these factors will lead to margin expansion above 58%, I will keep an eye on this. Will also need to keep an eye on VMW as potential competition, although so far FIO is in front.
Fusion-io: An Expensive Stock But Compelling Relative Value [View article]