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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Fool contributor Alex Planes holds no financial position in any company mentioned here. Add him on Google+ or follow him on Twitter for more news and insights. The Motley Fool owns shares of Western Digital. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.