Fusion-io Surges on Sales Forecast and Acquisition of NexGen
Fusion-io Inc. (FIO), a maker of data-storage computers, climbed the most in eight months after forecasting sales that topped analysts’ estimates and announcing the acquisition of NexGen Storage Inc.
Revenue in the fourth quarter, which ends in June, will be about $110 million, the Salt Lake City-based company said yesterday in a statement. That’s higher than the average analyst estimate of $107.5 million, according to data compiled by Bloomberg.
Fusion-io, whose biggest customers include Apple Inc. (AAPL) and Facebook Inc., is aiming to sell to small and medium-sized businesses with more affordable flash-memory-based services. The company said it purchased NexGen for about $119 million in cash and stock, and is already promoting NexGen’s hybrid storage product on its website.
Fusion-io rose 20 percent to $20.03 at 9:46 a.m. in New York, and earlier touched $20.20 for the biggest intraday gain since August. The stock had dropped 27 percent this year through yesterday, compared with an 11 percent gain for the Standard & Poor’s 500 Index.
While revenue in the fiscal third quarter fell 7 percent to $87.7 million, it topped the $80.4 million average analyst estimate. Fusion-io said its net loss widened to $20 million, or 21 cents a share, from $4.68 million, or 5 cents, a year earlier.
Fusion-io, which employs Apple co-founder Steve Wozniak as chief scientist, sells corporate storage computers based on flash memory, which is faster and more expensive than widely used magnetic disk drives.
“This would take years to build out as a stand-alone company,” NexGen Chief Executive Officer John Spiers wrote yesterday in a blog post. “Overnight, those concerns are eliminated.”
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