Fusion-io sees weak third quarter as Apple, Facebook delay orders
(Reuters) - Storage drive maker Fusion-io Inc forecast current-quarter revenue below analysts' estimates as Facebook Inc and Apple Inc delayed bulk orders, sending its shares down 21 percent after the bell.
"... The change in our guidance reflects a two-quarter shift in the timing of their bulk purchases," 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 the year ended June 30, while Apple accounted for 25 percent.
"Basically, the $120 million of revenue that was expected from Facebook and Apple for the remainder fiscal year 2013, is not going to ship," Technology Insights Research analyst Nehal Chokshi told Reuters.
The company, which employs Apple co-founder Steve Wozniak as its chief scientist, makes solid state memory drives using NAND flash technology.
Fusion-io, whose competitors include OCZ Technology Group Inc and Stec Inc, said it expects third-quarter sales of about $80 million, much lower than analysts' average expectation of $137.2 million.
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.
Excluding items, the company earned 13 cents per share.
Revenue rose about 43 percent to $120.6 million.
Analysts on average had expected adjusted earnings of 8 cents per share on revenue of $120.3 million, according to Thomson Reuters I/B/E/S.
Fusion-io's revenue has now beaten analysts' estimates for at least eight consecutive quarters.
The company's shares, which have fallen about 19 percent in the last three months, were down at $16.19 after the bell. They closed at $20.09 on the New York Stock Exchange.
(Reporting by Chandni Doulatramani in Bangalore; Editing by Supriya Kurane, Maju Samuel)