Fusion-io: Fiscal 4Q11 Financial Results

Fusion-io, Inc. announced its financial results for the fiscal fourth quarter and fiscal year ended June 30, 2011.

Fiscal Fourth Quarter 2011 GAAP Financial Results
Fusion-io, Inc. reported revenue of $71.7 million for the fiscal fourth quarter of 2011, up 556% from $10.9 million for the same quarter of 2010 and up 7% from $67.3 million for the prior quarter.

Net income for the fiscal fourth quarter of 2011 was $5.8 million, or $0.06 per diluted share. This compared to a net loss of $(11.9) million, or a net loss per diluted share of $(1.00) in the same quarter of 2010.

Gross margin for the fiscal fourth quarter 2011 was 66.2% compared to 46.8% for the same quarter last year.

Operating margin for the fiscal fourth quarter of 2011 was 13.4%.

Fiscal Fourth Quarter 2011 Non-GAAP Financial Results
Non-GAAP net income for the fiscal fourth quarter of 2011 was $13.2 million, or $0.15 per diluted share. This compares to a non-GAAP net loss of $(11.2) million, or $(0.94) per diluted share, for the same quarter of 2010. Non-GAAP gross margin for the fiscal fourth quarter of 2011 was 66.2% compared to 46.8% for the same quarter of 2010. Non-GAAP operating margin for the fiscal fourth quarter 2011 was 20.3%. A complete reconciliation of GAAP to non-GAAP results is set forth in the attachment to this press release.

"We believe our significant year-over-year growth emphasizes increasing industry recognition that storing data close to the CPU where it is processed finally addresses the data supply problem," said David Flynn, Chairman and Chief Executive Officer of Fusion-io. "Fusion-io offers a simple, efficient, cost-effective platform that integrates within existing architectures to meet the data demands faced by modern enterprises as they seek to accelerate databases and applications and to virtualize their infrastructure. Fusion-io remains focused on hardware innovation, but our software is what differentiates our platform solution. With the acquisition of IO Turbine, we will add yet another powerful software component to our platform that elegantly minimizes complexity, further amplifying the performance of ioMemory in VMware virtualized environments and expands our addressable market."

Fiscal 2011 GAAP Financial Results
Revenue for fiscal year 2011 was $197.2 million, up 445% from $36.2 million in fiscal year 2010. Net income was $4.6 million, or $0.06 per diluted share. This compared to a net loss of $(32.5) million, or $(2.95) per diluted share, for the fiscal year 2010. Gross margin for the fiscal year 2011 was 57.4% compared to 55.8% for fiscal year 2010. Operating margin for the fiscal year 2011 was 4.9%.

Fiscal 2011 Non-GAAP Financial Results
Non-GAAP net income was $16.3 million, or $0.20 per diluted share. This compares to a non-GAAP net loss of $30.5 million, or $(2.77) per diluted share, for the fiscal year 2010. Gross margin was 57.4% compared to 55.8% for fiscal year 2010. Non-GAAP operating margin for the fiscal year 2011 was 9.3%.

"In our first quarter as a public company, we achieved strong results driven by the healthy demand for our solutions," said Dennis Wolf, Chief Financial Officer of Fusion-io. "We believe we are well positioned to move the business forward in the coming years as we expand our customer base while continuing to make disciplined investments to fuel growth."

Financial Highlights

• On June 9, 2011, Fusion-io completed its initial public offering, raising $218.9 million, net of expenses.
• Cash, cash equivalents and short-term investments at the end of the quarter were $219.6 million, an increase of $198.4 million over the fiscal fourth quarter 2010.
• Net cash used in operations was $8.3 million for the fiscal fourth quarter and $9.9 million for fiscal year 2011.
• Capital expenditures were $3.0 million in the fiscal fourth quarter and $13.0 million for fiscal year 2011.

The following statements are based on current expectations. These statements are forward-looking, and actual results may differ materially. These statements supersede all prior statements regarding 2012 financial results.

First quarter of fiscal year 2012,
inclusive of the acquisition of IO Turbine:

• Revenue is expected to be $60 to $65 million.
• Non-GAAP gross margin is expected to be approximately 58%.
• Non-GAAP operating margin is expected to be 3 to 5%.
• Diluted shares outstanding is expected to be approximately 106 million shares.

Fiscal Year 2012,
inclusive of the acquisition of IO Turbine:

• Revenue growth is expected to be approximately 40%.
• Non-GAAP gross margin is expected to be in the target range of 56 to 58%.
• Non-GAAP operating margin is expected to be in the range of 5 to 7%.
• Non-GAAP effective tax rate is expected to be approximately 10%.
• Diluted shares outstanding is expected to be approximately 112 million shares.