Fusion-io's Standalone Prospects Go Dark, Company Should Find A Buyer
Ashraf Eassa • 36 Comments
Ashraf Eassa • 36 Comments
Opportunity Exists At Fusion-io If Only It Can Execute
Stone Fox Capital • 10 Comments
Stone Fox Capital • 10 Comments
Fusion-io : In The David Vs. Goliath Battle Of Storage, David Is Winning
AlphaStreetResearch • 18 Comments
AlphaStreetResearch • 18 Comments
Jun. 16, 2014, 4:47 PM
- "[SanDisk] was already positioning the company as more of a enterprise storage company ... what the Fusion-io (FIO +22.4%) deal does is it enhances that significantly," says Cross Research's Steven Fox, praising SanDisk's (SNDK +3.6%) $1.1B buy.
- Summit Research likes the fact SanDisk is picking up a blue-chip client list that includes Apple and Facebook, though those two companies have been paring orders lately. Other clients of Fusion-io's PCIe server flash modules include Pandora, Salesforce, Alibaba, and Baidu.
- SanDisk is paying only 2.5x FY15E (ends June '15) sales exc. cash. Needham likes the valuation, and notes the deal makes SanDisk the #2 enterprise SSD vendor (16%+ share), behind Intel. Gartner recently estimated SanDisk and Fusion-io were #4 and #5, behind Intel, Samsung, and Western Digital.
- Even before the deal, SanDisk was aiming for $1B in 2016 enterprise sales. Adding Fusion-io allows SanDisk to pair its ability to source high-end NAND flash chips at cost with FIO's high-performance/low-latency server flash IP.
- SanDisk made fresh highs today. FIO closed 1% above SanDisk's $11.25/share offer price on hopes for a higher bid. Seagate recently bought Avago/LSI's PCIe server flash unit for $450M.
Jun. 16, 2014, 12:45 PM
Jun. 16, 2014, 9:15 AM
Jun. 13, 2014, 1:17 PM
- Roth has started Fusion-io (FIO +4%) with a Buy and $12.50 PT. Shares are once more positive on the year, but continue to trade at a small fraction of their 2011/2012 levels.
- With the list of potential suitors apparently dwindling, the bull case for Fusion-io increasingly revolves around the company's efforts to ramp sales to enterprises, and to Web/cloud clients (Pandora, Salesforce, Alibaba, etc.) not named Apple or Facebook.
May 30, 2014, 1:49 PM
- High-beta enterprise tech names are particularly well-represented in a momentum stock selloff as Splunk, Nimble Storage, Violin Memory, and (especially) Infoblox fall post-earnings.
- Analytics/data visualization software vendors Tableau (DATA -6.5%) and Qlik (QLIK -4.1%), often hyped (like Splunk) as big data plays, are among the decliners. As is flash storage vendor Fusion-io (FIO -5.4%), which competes with Violin and (to a lesser extent) Nimble. But they're far from the only ones.
- Security decliners: FEYE -6.5%. CUDA -8.4%. IMPV -7.4%. PFPT -5.7%. VDSI -4%. QLYS -4.5%.
- Cloud software decliners: WDAY -4.1%. JIVE -4.3%. MKTO -7.4%. NOW -4.9%. TNGO -5.1%. CSLT -6.9%. TXTR -6.7%. RALY -11.6%.
Apr. 24, 2014, 12:46 PM
Apr. 23, 2014, 5:38 PM
Apr. 23, 2014, 5:27 PM
- F5 (FFIV) expects FQ3 revenue of $428M-$438M and EPS of $1.33-$1.36, largely favorable to a consensus of $428.7M and $1.33. Shares +2.7% AH. (FQ2 results, PR)
- Fusion-io (FIO) expects FQ4 revenue to be in-line or up slightly Q/Q relative to FQ3's $100.5M. That suggests revenue will miss a consensus of $107.5M. Gross margin is expected to be in a range of 52%-54% vs. 52.4% in FQ3., and op. margin in a range of -13% to -17% vs. FQ3's -16.7%. Shares -3.9% AH. (FQ3 results, PR)
- Citrix (CTXS) expects Q2 revenue of $765M-$775M and EPS of $0.57-$0.59, below a consensus of $785.1M and $0.68. But full-year guidance is better: 8.5%-10% revenue growth and EPS of $2.90-$2.95 vs. a consensus for 9.1% growth and EPS of $2.91. Shares +4.7% AH. (Q1 results, PR)
Apr. 23, 2014, 11:31 AM
- NetApp (NTAP -1.1%), Fusion-io (FIO -2.1%), and Nimble Storage (NMBL -3.2%) are all lower after EMC reported a 3% revenue drop for its core Information Storage ops, and a 7% drop in the unit's product sales.
- EMC's high-end storage sales were particularly weak, falling 22% Y/Y. On the other hand, emerging storage sales (inc. flash storage, object storage, and scale-out NAS) rose 81%, and unified storage and backup/recovery sales rose 4%.
- NetApp is EMC's biggest rival in the unified storage space. All three of the aforementioned companies compete to varying degrees against products offered by EMC's emerging storage ops.
- EMC's numbers follow a relatively healthy Q4 for the storage industry. But they also come amid concerns about the long-term impact of cloud infrastructure services on traditional storage arrays from the likes of EMC, IBM, NetApp, and H-P - concerns heightened by an ongoing price war.
- Separately, upstart flash array vendor Pure Storage has raised $225M at a $3B valuation. CEO Scott Dietzen says Pure, which asserts its flash arrays are cheaper than rival solutions and offer a superior data-reduction feature set, isn't in any rush to go public.
- Nutanix, a maker of clustered server/storage systems for web-scale data centers, raised funding earlier this year at a ~$1B valuation.
Apr. 10, 2014, 4:01 PM
- Following a two-day rebound, high-beta tech stocks are seeing monumental losses once again. The Nasdaq is closing with its biggest one-day decline since 2011 (eclipsing last week's 110-point drop).
- Security hardware/software providers were hard-hit following Imperva's (IMPV -43.8%) big warning: FEYE -11.6%. PANW -6.4%. PFPT -9.8%. FFIV -4.7%. KEYW -6.5%. FTNT -6.9%. QLYS -10.4%.
- Other high-beta enterprise names didn't fare much better: DATA -10%. SPLK -10.3%. WDAY -9.3%. VRNS -8%. EOPN -7.9%. FIO -7.6%. BLOX -9.7%.
- Major Internet decliners: P -11%. YELP -10.6%. ZNGA -6.6%. YY -7.3%. QIHU -9.3%. SINA -6.6%.
- Solar: TSL -10.4%. CSIQ -10.4%. JKS -7.9%. SPWR -7.4%. JASO -6.8%. CSUN -8.2%.
- 3D printing: DDD -10.6%. VJET -13.3%. ONVO -8.1%. XONE -7.7%. SSYS -6.7%.
Mar. 11, 2014, 11:30 AM
- Pac Crest's Brent Bracelin (Outperform, $14 PT) reports Fusion-io's (FIO +5.6%) channel partners are seeing improved demand for the company's new storage appliances and software.
- He also thinks Fusion-io could benefit from the launch of a 3rd-gen server flash module platform, and from diminishing competition. The PCIe flash module space has seen some consolidation, and Violin Memory recently suggested it's abandoning the market. But competition is still provided by Western Digital, Intel, LSI, and others.
- Fusion-io's sales were hit hard last year by declining orders from Apple and Facebook. The company is counting on a stronger enterprise push (led by new CEO/ex-H-P exec Shane Robison) and growing sales to other Web/cloud clients (e.g. Salesforce, Pandora, Yelp, Alibaba) to spark a turnaround.
Feb. 27, 2014, 1:43 PM
- Nimble Storage (NMBL +6.9%), Fusion-io (FIO +6%), and Violin Memory (VMEM +6.6%) are all rallying strongly ahead of Nimble's first earnings report as a public company (due after the close).
- Fusion-io had 15% of its float shorted as of Feb. 14. Violin, which sold 18M shares in a September IPO, had a 4.2M-share short interest as of Feb. 14.
- Going into its report, Nimble is up 157% from a December IPO price of $21.
Feb. 20, 2014, 4:39 PM
- Violin Memory (VMEM), under new management, coming off a rough 2013, and reportedly talking with suitors, says it has implemented job cuts that have lowered its headcount to 380 employees from an Oct. 31 level of 483.
- The company also says it's exploring options for its PCIe server flash memory module ops (the product of the Velocity acquisition) to focus on "markets where Violin has proven technology leadership and significant growth opportunities." Violin expects to finish its review by the end of FQ1 (ends in April), and achieve annual opex savings of $10M/year as a result.
- Violin's final decision for its PCIe business stands to have implications for Fusion-io (FIO), the most prominent independent player in this space.
- Violin's FQ4 report is due on March 6.
- VMEM +2.3% AH
Jan. 23, 2014, 12:47 PM
Jan. 23, 2014, 9:41 AM
- Fusion-io (FIO +11.7%) has been started at Buy by Craig-Hallum after beating FQ2 estimates and issuing light FQ3 guidance.
- Rambus (RMBS +5.3%) has been upgraded to Buy by Citi ahead of Monday's Q4 report.
- TE Connectivity (TEL -0.2%) has been upgraded to Buy by Cross Research after delivering an FQ1 beat yesterday.
- CalAmp (CAMP -7.7%) has been cut to Neutral by B. Riley.
Jan. 22, 2014, 4:21 PM
- 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).
- CC at 5PM ET. FQ2 results, PR.
Fusion-io Inc is a provider of data-centric computing solutions - a combination of hardware and software that places data closer to processing, resulting in dramatic improvements in both performance and efficiency.
Industry: Data Storage Devices
Country: United States
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