Fusion-io: Fiscal 1Q13 Financial Results

Fusion-io, Inc. announced its financial results for its fiscal first quarter ended September 30, 2012.

• Revenue: $118.1 million
• GAAP Gross Margin of 59.4% and Non-GAAP Gross Margin of 59.5%
• GAAP Net Earnings per Diluted Share: 4 cents
• Non-GAAP Net Earnings per Diluted Share: 14 cents
• Operating Cash Flow: $28.7 million

1Q13 GAAP Financial Results
Fusion-io reported record revenue of $118.1 million for the fiscal first quarter 2013, up 59% from $74.4 million for the same quarter of 2012 and up 11% from $106.6 million for the preceding quarter. Net income for the fiscal first quarter of 2013 was $3.9 million, or $0.04 per diluted share, compared to net income of $7.2 million, or $0.07 per diluted share, in the fiscal first quarter of 2012. Gross margin for the fiscal first quarter 2013 was 59.4%. Operating margin for the fiscal first quarter 2013 was 7.2%.

1Q13  Non-GAAP Financial Results
Non-GAAP net income for the fiscal first quarter of 2013 was $14.9 million, or $0.14 per diluted share, compared to non-GAAP net income of $15.1 million, or $0.15 per diluted share in the same quarter of 2012. Non-GAAP gross margin for the fiscal first quarter 2013 was 59.5%. Non-GAAP operating margin for the fiscal first quarter 2013 was 19.5%. A complete reconciliation of GAAP to non-GAAP results is set forth in the attachment to this press release.

"We are pleased with our execution in the first quarter and our ability to continue to capture market share," said David Flynn, Fusion-io chairman and CEO. "Our innovative use of flash memory technology in our portfolio of software defined data acceleration solutions is yielding significant performance and efficiency improvements for our customers’ data centers. We believe the economic benefits enabled by flash technology and Fusion-io software become only more compelling over time."

Dennis Wolf, Fusion-io chief financial officer, added: "Our 59% year-over-year revenue growth, approximately $29 million in operating cash flow, and approximately $350 million in cash and cash equivalents as of the end of the quarter put us in a healthy financial position to be able to continue to invest in growth."

Other Financial Highlights

• Cash and cash equivalents totaled $353.9 million at the end of fiscal first quarter 2013, an increase of $32.7 million compared to the prior quarter-end.
• Deferred revenue at the end of fiscal first quarter 2013 was $34.5 million, an increase of $5.6 million compared to the prior quarter-end.
• Inventory was $67.2 million at the end of fiscal first quarter 2013, an increase of $7.7 million compared to the prior quarter-end.
• Capital expenditures were $5.2 million in fiscal first quarter 2013.

Recent Business Highlights

• On August 27, Fusion-io announced that its ioTurbine virtualization caching software now offers intelligent application caching for the Linux guest operating system, in addition to supporting the Microsoft Windows guest operating system.
• On August 21, Fusion-io and NetApp entered into a resale agreement whereby NetApp will resell ioMemory platform products and server caching software products, Fusion ioTurbine, for virtualized environments, and Fusion-io directCache for non-virtualized environments.

2Q13 guidance:

• Revenue is expected to be essentially flat sequentially.
• Non-GAAP gross margin is expected to be in the range of 56 to 58%.
• Non-GAAP operating margin is expected to be approximately 10%.
• Diluted shares outstanding are expected to be approximately 112 million shares.

FY13 guidance remains unchanged:

• Revenue growth is expected to be in the range of 45 to 50%.
• Non-GAAP gross margin is expected to be in the range of 56 to 58%.
• Non-GAAP operating margin is expected to be approximately 12%.
• Diluted shares outstanding are expected to be approximately 114 million shares.