Why Fusion-io Got Crushed
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 (NYS: FIO) are getting crushed today by as much as 10% after the flash specialist reported earnings.
So what: Third-quarter revenue soared 40% to $94.2 million, with non-GAAP coming in at $6.9 million, or $0.06 per share. However, on a GAAP basis, the company ended up posting a $4.7 million loss, or $0.05 per share.
Now what: Fusion-io continues to see minor growing pains as gross margin ticked lower, which is also why shares sold off after the last earnings release. The future still looks promising, with full-year revenue growth predicted to be about 75%. Benchmark is now reiterating its "buy" rating while boosting its price target to $35, citing a growing market for its unique flash architecture.
Interested in more info on Fusion-io? Add it to yourWatchlist.
At the time this article was published Fool contributorEvan Niuholds no position in any company mentioned. Check out hisholdings and a short bio. The Motley Fool has adisclosure policy. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. Try any of our Foolish newsletter servicesfree for 30 days.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.