Though it beat FQ2 estimates, Fusion-io (FIO) is guiding for FQ3 revenue to be flat to slightly up Q/Q. The consensus is for sales to rise 4% Q/Q to $97.9M.
FQ2 gross margin was 57.6%, -180 bps Q/Q and -410 bps Y/Y, but soundly above a guidance range of 52%-54%. However, FQ3 gross margin is expected to fall to a range of 51%-53%.
While revenue fell 22% Y/Y, opex rose 10% to $74M, thanks to healthy increases in both sales/marketing and R&D spend.
Though maintaining a performance/latency technology edge over many rivals, Fusion-io has been dealing with declining orders from top customers Apple and Facebook, and growing competition from cheaper flash storage solutions (both server flash modules and standalone storage arrays).