- Fusion-io (FIO -24.2%) has plunged to new post-IPO lows due to its light FQ1/FY14 guidance. Analysts generally argue a turnaround won't come quickly.
- Benchmark (Hold): "We now believe FIO is required to significantly lower pricing for ioScale in order to attract hyperscale customers large enough to backfill maturing Apple/Facebook business." Fusion-io launched ioScale in January as a low-cost/high-density alternative to its mainstay ioDrive modules.
- Benchmark is also worried about slumping margins, something it attributes to changing mix and rising NAND flash prices.
- Benchmark and Stifel (downgrading to Hold) both raise questions about OEM channel conflict and competition. The former thinks LSI might be taking some of Fusion-io's Facebook sales. Raymond James uses the occasion to argue LSI is well-position to become the #2 player in the enterprise server flash module space.
- Lazard is (kind of) among the defenders. "We don't see enough evidence that competition is marginalizing FIO ... We see revenue lumpiness and some executive missteps."
- On the CC, management asserted order from newer Web/cloud customers (a group that includes Pandora, Alibaba, and Salesforce) will help spark a rebound. LinkedIn and a U.K. financial services firm were named as clients picked up in FQ4.