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Fusion-io Buzzing Because of Apple, Facebook

By - Source: SeekingAlpha | B 4 comments

Fusion-io's business is flourishing thanks to increasing demand for high-end flash drives.

The company had sales of $118.1 million in the most recent quarter, up 55 percent year-over-year and a net profit of $14.9 million, up 59 percent in the same time frame. However, Fusion-io is thriving on a relatively small customer base, which includes Facebook and Apple.

The two companies currently account for 56 percent, or about $66 million, of Fusion-io's current quarterly sales. Both companies apparently have an especially big thirst for fast flash drives in their servers. HP also buys a good chunk of the company's products, adding another 14 percent.

Down the road, Fusion-io will have to diversify its customer base. The company said it is broadening its product portfolio and is also focusing on channels such as VAR, more geographies, pitching its alliance program, and sales to the government sector.

There have also been concerns about IBM as another big customer for Fusion-io, since IBM recently acquired flash technology company Texas Memory Systems (TMS). However, Fusion-io said that TMS was acquired to support IBM's memory appliance. The company believes it will continue working with IBM on its needs for flash inside servers and will not not be impacted by TMS in that space.

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  • -4 Hide
    echondo , October 26, 2012 10:38 PM
    Flash Drive? Anyone else think they were talking about USB flash drives?

    I wonder what Google uses for it's server storage...
  • -9 Hide
    damianrobertjones , October 26, 2012 10:44 PM
    This is a great big paid for article. Nice
  • 7 Hide
    mavroxur , October 27, 2012 1:17 AM
    Good for Fusion-io, because their products are completely un-affordable to the masses.
  • 0 Hide
    Jax69 , October 27, 2012 6:37 AM
    they should release affordable consumer drives, their pockets will explode automatically .