Server flash-pusher Fusion-io is running out of steam

Post by Chris Mellor (thank you) over at El Reg

Fusion-io is something of a contradiction. If it’s so hot why isn’t it making bucketloads of cash? That’s the question that comes to mind after hearing hot server flash product market Fusion-io reported a loss of almost $5m in its third fiscal 2012 quarter.

Fusion revenues were a record $94.2m – 40 per cent more than a year ago and $10.1m up on the previous quarter – meaning 12 per cent sequential growth. In fact the revenue number was higher than the $85.6m expected by Wall St.

Should we whisper it? Is Fusion-io’s growth rate slowing? Look at the chart below. It actually looks as if it is accelerating after slight growth over the past three quarters. But then there’s the forecast of no growth for the next quarter, as we shall see.

Andrew Nowinski of Piper Jaffray thinks there is a lot of growth to come: “Fourth quarter revenue is expected to remain flat (but still above the Street) due to the delayed qualification at the company’s OEMs. These are typical growing pains of a young company in rapid growth mode. More importantly, the demand environment remains exceptionally strong as evidenced by the strong growth in both core and strategic customers.”

Read on here

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