Sometimes it's not enough to grow quickly, as Fusion-io
Nothin' but the truth
Fusion-io has made a couple of major technological leaps forward recently, beginning with its November release of a new solid-state drive boasting a mind-boggling 10 terabytes of capacity. That drive might soon be boosted with technology that can maintain a billion transfers per second. By comparison, standard drives from Western Digital
The big leap forward in capability hasn't yet translated to big profits. Here are a few key numbers from the company's latest report:
- Fusion-io's net loss was $5.7 million, but the company booked a $5.6 million profit under non-GAAP accounting.
- Cash on hand was up in a big way, up $105.5 million thanks largely to a secondary offering last November that brought in $94 million.
- Operating cash flow was solid at $13.5 million for the quarter.
- Inventories dropped by 10%. Accounts receivable are almost half what they were a year ago.
- The company estimates that next quarter's revenue will be flat, and projects a slight drop in its non-GAAP net margin, from nearly 7% currently to about 5%.
- The full 2012 fiscal year should see 65% to 70% revenue growth and a non-GAAP net margin of 8%. The company calculates non-GAAP earnings by excluding stock-based compensation, amortization of intangible assets, and acquisitions.
Will it catch on?
Fusion-io needs to show a positive bottom-line trend going forward to justify its triple-digit P/E, especially in light of Western Digital's impressive post-flood profit. Seagate will report next week, and is expected to net $1.07 per share. Another SSD manufacturer is having similar growing pains -- OCZ Technology
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