Fusion-io, Inc. (NYSE:FIO)

CAPS Rating: 3 out of 5

Fusion-io is a computer hardware and software systems company that designs and manufactures memory.

Recs

5
Player Avatar TMFInnovator (55.70) Submitted: 6/7/2013 9:46:22 AM : Outperform Start Price: $13.99 FIO Score: -37.46

I think this is a good risk/reward tradeoff that's worthy of a bullish CAPS call.

- Flash memory used to improve the performance of servers. Big data is a hot topic that is just getting hotter.
- Established customer list with some of the biggest players in the industry. HP, Dell, IBM, Apple, Spotify and Facebook all use Fusion-io. Those are big companies that depend every day on having optimized servers. That gives me confidence that the Fusion ioMemory platform works very well.
- The company's CEO AND CMO left just a month ago to "pursue entrepreneurial investing activities". Although this is definitely a concern, it's not a deal breaker. This is just what some entrepreneurs do. They'll come in, create something big and get paid a lot of money. But then they become tired of the day-to-day and move on to create something else.
- Shane Robison, the new CEO, has decades of experience with HP. It is expected that he will help to court enterprise clients, which is good news.
- Read the reviews on Glassdoor.com. 4.8 out of 5 stars. Employees are motivated. "World-changing", "Great morale", "fun place to be". That's a great culture that is important to preserve as Fusion-io grows.

Report this Post 3 Replies
Member Avatar gr8twhtebuffalo (54.53) Submitted: 9/16/2013 10:57:00 PM
Recs: 0

With today's decline would you recommend selling or waiting for a possible buy out?

Member Avatar TMFInnovator (55.70) Submitted: 9/17/2013 8:43:30 PM
Recs: 0

No - not selling yet.

I'm more interested to see if FIO can get some more big customer wins (esp. w/ Robison now as CEO) than following the recent buyout speculation.

Member Avatar TMFInnovator (55.70) Submitted: 6/16/2014 10:38:03 AM
Recs: 0

SanDisk offers to buy Fusion-io for $1.1 billion: http://www.forbes.com/sites/samanthasharf/2014/06/16/sandisk-to-buy-fusion-io-for-1-1-billion-slashing-370-million-from-2011-valuation/?partner=yahootix

Sad to see them get swooped up at a much lower market cap. But perhaps flash memory for servers is getting commoditized too quickly, and this is actually a good move for the company.

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