Fusion-io Paves Flashy Road to Market Growth

Posted on August 10, 2012 By Pedro Hernandez

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Hard drives may still rule the data center, but Fusion-io's financials indicate that solid-state drives (SSD) are making big inroads in enterprise data storage.

Salt Lake City-based Fusion-io reported that the company had booked $359.3 million in revenues during its 2012 fiscal year, an 82 percent increase over the FY 2011. The company was buoyed by strong fourth-quarter sales, which CFO Dennis Wolf expects will continue and give the Fusion-io some solid momentum well into FY2013.

"Fusion-io's 82 percent revenue growth and 130 percent non-GAAP net income growth over the prior year reflect a strong fiscal year 2012.  We reported record cash flow from operations, and we exit the fiscal year with a healthy balance sheet that gives us strategic flexibility," stated Wolf in remarks to investors.

"Our goal for the coming year is to continue to execute on our growth strategy while furthering our technology leadership," added Wolf.

His team will need to push hard to keep up Fusion-io's breakneck pace.

During the past few months, the storage maker has been in the habit of making tech headlines. In June, the company inked a deal with Cisco that brings its IOPs-boosting PCIe flash acceleration cards to the networking giant's fast-growing Unified Computing System (UCS) blade server platform.

Last week, Fusion-io unveiled ION, new software that leverages its flash technology, to enable "Software Defined Storage" acceleration for SANs.

For the fourth quarter, Fusion-io broke another record by generating $106.6 million in revenues, a 13 percent increase over the previous quarter ($94.2 million) and a whopping 49 percent bump over the same period a year ago ($71.7 million).

But that growth came at a cost.

On a non-GAAP (generally accepted accounting principles) basis, net income for Q4 of 2012 dipped to $9.8 million ($0.09 per share) from $13.2 million ($0.15 per share) for the same year-ago period. The company reported a GAAP net loss of $2.4 million for Q4 2012, or $0.03 per share.

For FY 2012, Fusion-io reported non-GAAP net income of $37.5 million, or $0.35 a share versus the $16.3 million, or $0.20 per share, that the company posted in 2011. On a GAAP basis, the company posted a net loss of $5.6 million, or $0.06 per share, for FY 2012.

Pedro Hernandez is a contributing editor at InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals. Follow him on Twitter @ecoINSITE.

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