(Reuters) - Memory drive maker Fusion-io Inc FIO.N reported higher-than-expected revenue for the third quarter and forecast current-quarter revenue ahead of analysts’ estimates, pushing up its shares 11 percent in after-hours trading.
The company, which makes solid state memory drives using NAND flash technology, forecast revenue of about $110 million for the fourth quarter. Analysts on average were expecting $107.3 million, according to Thomson Reuters I/B/E/S.
“I think the sentiment was negative after the company cut its (full-year) outlook after the December quarter, but the third quarter results have signaled to the investors that the company is back on track,” Craig-Hallum Capital Group analyst Rajesh Ghai said.
“Our relationship with Facebook and Apple is strong. Their orders this quarter were in line with our expectations. We are a key part of their infrastructure and expect to grow as they grow,” Chief Executive David Flynn said on a call with analysts.
Fusion-io’s net loss increased to $20 million, or 21 cents per share, in the third quarter ended March 31, from $4.7 million, 5 cents per share, a year earlier.
Excluding items, the loss was 3 cents per share.
Revenue fell 7 percent to $87.7 million.
Analysts on average had expected a loss of 1 cent per share on revenue of $107.3 million.
The company also said it had agreed to acquire Louisville-based NexGen Storage for $114 million in cash and $5 million in stock. Fusion-io said it would add about 50 NexGen employees to its team.
Fusion-io shares rose to $18.42 in after-market trading after closing at $16.63 on the New York Stock Exchange on Wednesday.
(Reporting By Aditya Kondalamahanty in Bangalore; Editing by Maju Samuel)
This story was corrected in the last paragraph to say shares rose, not fell