Black ink sure is sweet, especially for shareholders of Fusion-io
First-quarter revenue soared by a whopping 175% from $27 million last year to $74.4 million. The company was able to translate the top line into an adjusted profit of $15.1 million, or $0.15 per share, which sure beats last year's $4.9 million adjusted loss in the first quarter. Gross margin jumped from 43% to a solid 63.2%. The figures handily toppled the market's expectations of $64.3 million in sales and $0.03 earnings per share.
Demand for the company's next-generation data decentralization platform for data storage using solid-state drives has been snowballing, threatening to disrupt incumbents like EMC
The company also relies heavily on big-name OEMs such as IBM
Fusion-io CEO David Flynn said the company's products "address the data supply problem enterprises face as they struggle to meet the growing demand to process more data faster." The rapid adoption of the cloud and virtualization is creating unique challenges for IT departments that Fusion-io's technology can confront.
I'm not the only one to think this stock has great growth potential and can storm the enterprise data storage industry. I've had my eye on Fusion-io since it went public in June, and it might eventually find its way into my portfolio.
Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Apple, International Business Machines, and EMC. Motley Fool newsletter services have recommended buying shares of Dell and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. 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.