Fusion-io Beats on Both Top and Bottom Lines

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Fusion-io (NYS: FIO) reported earnings on Oct. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q1), Fusion-io beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.


Margins dropped across the board.

Revenue details
Fusion-io logged revenue of $118.1 million. The 16 analysts polled by S&P Capital IQ foresaw net sales of $110.7 million on the same basis. GAAP reported sales were 59% higher than the prior-year quarter's $74.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.14. The 18 earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS of $0.04 for Q1 were 43% lower than the prior-year quarter's $0.07 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 59.4%, 380 basis points worse than the prior-year quarter. Operating margin was 7.2%, 590 basis points worse than the prior-year quarter. Net margin was 3.3%, 640 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $125.2 million. On the bottom line, the average EPS estimate is $0.09.

Next year's average estimate for revenue is $531.9 million. The average EPS estimate is $0.38.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 204 members out of 233 rating the stock outperform, and 29 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Fusion-io a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Fusion-io is outperform, with an average price target of $33.46.

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The article Fusion-io Beats on Both Top and Bottom Lines originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Fusion-io. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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