Fusion-io cuts 2013 forecast as Apple, Facebook delay orders

Wed Jan 30, 2013 8:18pm EST
 
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By Chandni Doulatramani

(Reuters) - Fusion-io Inc slashed its fiscal 2013 revenue forecast as key customers Facebook Inc and Apple Inc delayed orders, sending the storage drive maker's shares down 21 percent after the bell.

"... The change in our guidance reflects a two-quarter shift in the timing of their bulk purchases," Fusion-io Chief Financial Officer Dennis Wolf said in a statement.

Facebook accounted for 30 percent of Fusion-io's total sales of $359.3 million in its previous financial year, while Apple contributed 25 percent.

The company, whose competitors include OCZ Technology Group Inc and Stec Inc, now expects revenue of about $420 million to $440 million in the year ending June 2013, down from its earlier estimate of about $521 million to $539 million.

Analysts on average were expecting revenue of $530.1 million in the period, according Thomson Reuters I/B/E/S.

"The reduction in guidance is largely attributable to a reduction of expected shipments to Apple and Facebook," Technology Insights Research analyst Nehal Chokshi said.

The company, which employs Apple co-founder Steve Wozniak as its chief scientist, makes solid state memory drives using NAND flash technology.

Fusion-io posted net income of $1.7 million, or 2 cents per share, in the second quarter, compared with a net loss of $5.7 million, or 7 cents per share, a year earlier.   Continued...