Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Fusion-IO, (NYSE: FIO) plunged more than 10% Thursday after the company released mixed fiscal third-quarter results and underwhelming forward revenue guidance.
So what: Quarterly revenue rose 14.6% year over year, to $100.5 million, which translated to an adjusted net loss of $0.10 per diluted share. Analysts, on average, were looking for a narrower $0.09 per-share loss on sales of just $96.7 million. Adjusted gross margin was also 52.4%, while adjusted operating margin was negative 16.7%.
For the current quarter, Fusion-IO expects revenue to be "in-line to slightly up sequentially." Meanwhile, adjusted gross margin should be in the range of 52% to 54%, and adjusted operating margin should come in around negative 13% to 17%. For reference, analysts are currently modeling a fiscal fourth-quarter loss of $0.06 per share on sales of $107.46 million.
Now what: Curiously, though, Fusion-IO used the exact same cautious verbiage for revenue guidance in both its fiscal first and second quarter reports, when it turned in sales of $86.3 million and $94.5 million, respectively. Once again, though, given Fusion-IO's lack of near-term profitability and significant top-line growth, I still can't get excited about the stock.