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 (1411) | 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 (4087) | 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 (221) | Send Message
    He is going to a private company, probably being pushed out
    24 Oct 2013, 08:27 AM Reply Like
  • sophocles
    , contributor
    Comments (221) | 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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