New Products And Acquisitions For Fusion-io

Market reports estimate worldwide spending on traditional data centers to be worth $1.24 trillion annually. According to Fusion-io, nearly $260 billion of that spend is value wasted waiting for data owing to data center inefficiencies. Fusion-io, the recently listed storage memory platform provider, is targeting these annual data center inefficiencies.

Fusion-io’s Financials
Fusion-io’s (NYSE: FIO) Q4 grew grow 556% over the year and 7% over the quarter to $71.7 million. Net income of $0.06 per share was also higher than the previous year’s loss of $1.00 per share. Non-GAAP earning s came in at $0.15 per share. The market was expecting revenues of $70.6 million with EPS of $0.14. The company ended the year with revenues of $197.2 million, growing 445% over previous year’s revenues of $36.2 million. Net income of $0.06 per share grew over previous year’s loss of $2.95 per share last year.

They did not divulge the contribution of Facebook to revenues in the last quarter, but for the nine months ended March this year, Facebook accounted for 47% of Fusion-io’s revenues. Management expects the percentage of contribution from Facebook to decrease in the coming quarters.

For the current quarter, Fusion-io expects revenues to be in the range of $60 million-$65 million with operating margin of 3%- 5%. The company expects to end the year with revenue growth of 40%, translating to revenues of $276.08 million. Earnings for the year are projected to be in the range of 5%-7%.

Fusion-io Acquires IO Turbine
Recently, Fusion announced their plans to acquire IO Turbine, Inc., a provider of caching solutions for virtual environments, for $95 million. The acquisition will help Fusion to deliver increased utilization, performance, and efficiency of data center resources and be able to extract greater value from information assets for their enterprise customers. Through the integration of IO Turbine’s software with their platform, Fusion plans to cater to increased demands of virtualized servers from traditional storage infrastructures and thus expand their market opportunities.

Fusion-io’s Expanding Products
Fusion-io also added to their product pipeline and recently launched ioCache bundle, a flash memory technology built to speed up virtualized computing environments. The addition of flash speeds to the virtual environment will help users get more work out of a single physical machine, thus saving money on hardware. The technology was developed using the technology acquired from IO Turbine.

Fusion’s stock is trading at $19.38 with a market capitalization of $1.61 billion. It reached a high of $36.98 since its IPO in June 2011, when it listed at $19.00 a share.