Seeking Alpha

Fusion-io now -12% AH; CFO and sales chief leaving

  • In tandem with its FQ1 results and below-consensus FQ2 guidance, Fusion-io (FIO) announces CFO Dennis Wolf is "leaving after a period of transition to pursue an opportunity at a private company." Also, sales chief James Dawson is retiring from the company.
  • A search has begun for Wolf's replacement; Dawson's replacement will be announced shortly. Separately, the company announces it has hired Gary Smerdon, until now the head of LSI's PCI-Express server flash module unit, to be its chief strategy officer.
  • Wolf and Dawson's departures follow the May resignations of CEO David Flynn and CMO Rick White, reportedly due to board pressure.
  • Fusion-io's sales have been hurt by declining orders from top customers Facebook and Apple; the company's FQ2 guidance suggests the weakness isn't letting up.
  • Shares have now given up most of the September gains they saw on account of M&A hopes.
Comments (5)
  • Philip Marlowe
    , contributor
    Comments (917) | Send Message
     
    Look for MU and SNDK to slowly but surely emerge as dominant in this sector.
    23 Oct 2013, 06:15 PM Reply Like
  • serndipity
    , contributor
    Comments (193) | Send Message
     
    With both the quarter results and forecast below consensus, both the CFO and Sales Chief leavings, where have I seen this before?

     

    Hope it's not another OCZ Technology in the making.
    23 Oct 2013, 06:45 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4054) | Send Message
     
    They seem to have real problems with their guidance. Good the CFO is pursuing other opportunities - I just hope not in any company I have shares in.
    23 Oct 2013, 07:35 PM Reply Like
  • sophocles
    , contributor
    Comments (204) | Send Message
     
    He is going to a private company, probably being pushed out
    24 Oct 2013, 08:27 AM Reply Like
  • sophocles
    , contributor
    Comments (204) | Send Message
     
    They beat rev and EPS expectations, guided slightly higher sequentially. Apparently, analysts (with management input) were expecting +32%.

     

    32%? Who guides 32% higher revenue? Of course, market did not believe that, stock closed at 12.98 yesterday, nobody was expecting 32%. Management seems clueless. Someone should take this toy away from them soon. Great technology and market, stock down about 60% YTD. Even with a monster buyout premium, long-term shareholders will lose, if they are still around.
    24 Oct 2013, 08:26 AM Reply Like
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