Tuesday, January 08, 2013

Fusion-io, Inc (NYSE:FIO): Jason Ader downgrades..

William Blair's uber analyst Jason Ader is downgrading Fusion-io, Inc (NYSE:FIO) to Market Perform from Outperform this morning.

- Checks reveal weaker than expected performance and increasing competitive threat from Intel.

Ader is downgrading the shares of FIO from Outperform to Market Perform, based on his belief that Street consensus estimates for the second half of fiscal 2013 (March and June quarters) calling for year‐over‐year growth of 46% are aggressive. His checks point to slower‐than‐expected bookings, specifically on the enterprise side of the business (both for PCIe cards and standalone software), leading him to believe that the company will struggle to meet expectations for the full fiscal year.

Ader notes they continue to strongly believe that enterprise flash is at an inflection point, but demand for server‐attached PCIe cards appears to be developing more slowly than he expected, though he is still expecting FIO to grow its enterprise sales by 53% (down from his previous estimate of 66%) in fiscal 2013 (June). The analyst notes he is struggling to point his finger at why demand has slowed in recent months, but it is evident that macro pressures affecting the larger storage market are impacting the PCIe segment, resulting in less low‐hanging fruit being available. In addition, his checks suggest that Fusion’s software offerings (ioTurbine and ION) and recent OEM partnerships (with Cisco [CSCO $20.29; Market Perform] and NetApp [NTAP $33.24; Market Perform]), both of which he has viewed as key growth catalysts in fiscal 2013, are developing more slowly than he initially anticipated. Lastly, Ader believes that new emerging architectures such as all‐flash arrays may be causing customers to pause as they evaluate alternative approaches to flash and educate themselves on newer offerings.

From a competitive standpoint, while William Blair has not picked a material change in the PCIe flash landscape, firm's checks indicate that Intel (INTC $21.25) is gaining steam with its recently introduced Ramsdale 910 series PCIe card. The 910 is substantially less expensive (30‐40% cheaper by some accounts) than Fusion’s ioDrive 2 product line, and according to their sources performs better than Fusion in write‐intensive environments. They believe Fusion may soon introduce a lower‐priced PCIe card that will be more competitive with the Intel card, but their fear is that this new card could cannibalize ioDrive sales.

Notablecalls: This is a big call from Ader. He is pretty much calling Fusion-io the next Mellanox (MLNX) with the exception Intel is already here with a competing product. What's even worse Intel's Ramsdale 910 series PCIe card is 30-40% cheaper while performing better than Fusion-io's comparable offering. That's going to weigh on margins sooner or later.

We had the perma bulls from Credit Suisse out yesterday touting FIO's ioTurbine software as the main competitive edge. Here's what Ader has to say:

'ioTurbine failing to meet growth expectations. Our checks indicate that FIO’s ioTurbine software designed to accelerate virtualized workloads is ramping more slowly than expected'

Ader is the Axe in the networking and storage space with his calls moving smaller names such as FIO by as much as 6-10%. He is lowering his '13 and '14 estimates below Street. FIO trades 40x '14 EPS.

Below $20 today and toward recent $17.50 lows in a few weeks? I would expect to see continued selling pressure in the name throughout the day.

(Note Ader is also downgrading EMC (NYSE:EMC) this morning)

17 comments:

Jaxson corey said...

This article clears all the doubts and confusions that will have issues while pretending & not getting there where they want to. Excellent Article!!!
Accounts Software For Small Business
Simran Kaur

Unknown said...

Wow, you have nice blog here with many helpful for brokers info, where you get it, what is your sources which you base this articles?
eCustom Writing write your articles with proper sources!

Mr Naveen said...

nice information
Part load Services
transporters in delhi

IndianPerson said...

Free coupons
Article Submission sites 2019

Video Teraveloka said...

Judi Bola Online adalah permainan yang dapat memberi dampak atau akibat terhadap para pemainnya. Baik atau Buruknya akibat yang di terima oleh sang pecandu bukanlah hal yang ditakutkan. Melainnya sudah menjadi sebuah tradisi yang wajib dinikmati walau terasa (Baca Selengkapnya Disini...)

tech support said...

HP envy 5055 driver download
HP envy 5052 driver download
HP officejet 5252 driver download
HP officejet 5255 driver download
HP officejet 5258 driver download
HP officejet pro 9025 driver download
HP officejet pro 9028 driver download
HP officejet pro 9010 driver download
HP officejet pro 9015 driver download
HP officejet 8020 driver download

Anonymous said...

I'm here to share my testimony of what a good trusted loan company did for me. My name is Nikita Tanya, from Russian and I’m a lovely mother of 3 kids I lost my funds on trying to get a loan it was so hard for me and my children, I went online to seek for a loan assistance all hope was lost until one faithful day when I met this friend of mine who recently secured a loan from Le_Meridian Funding Service She introduced me to this honest loan company who helped me get a loan in within 5 working days, I will forever be grateful to Mr Benjamin, for helping me get back on feet again. You can contact Mr Benjamin via email: lfdsloans@outlook.com lfdsloans@lemeridianfds.com, they do not know I’m doing this for them, but i just have to do it because a lot of people are out there who are in need of a loan assistance please come to this company and be saved.WhatsApp:(+1 989-394-3740)

محمد على said...


شركة تنظيف مكيفات بالرياض
شركة تنظيف كنب بالرياض
شركة تنظيف شقق بالرياض
شركة تنظيف موكيت بالرياض
شركة تنظيف واجهات زجاج بالرياض

Divine Soft Technology said...

Awesome article, it was exceptionally helpful! I simply began in this and I'm becoming more acquainted with it better! Cheers, keep doing awesome! for more information please visit: Best Local SEO Services in India

Promote Abhi - Business Chalega Tabhi/Startup Development Company said...

SMO and SMM
Independant Call Girls in Delhi
Brother Printer Troubleshooting
Icloud SMTP Server Setup
Avast Antivirus Help
Delhi Escort Services
Roku Tech Support for Technical Problemsf

Promote Abhi - Business Chalega Tabhi/Startup Development Company said...

SMO and SMM
Independant Call Girls in Delhi
Brother Printer Troubleshooting
Icloud SMTP Server Setup
Avast Antivirus Help
Delhi Escort Services
Roku Tech Support for Technical Problems

srlovetips said...

Microsoft365.com/setup
Latest Vacancy Job Alert
www.norton.com/setup
www.Office.com/Setup
Cash App Support

PackersMoving said...

Your blog is extremely wonderful. Whenever I read your blog, I prefer it considerably. many thanks considerably for sharing such a blog with us.
Local packers and movers in Bawana
Local packers and movers in Narela
Local packers and movers in Paschim Vihar
Local packers and movers in Nangloi

Anthony Mark said...

Buy indoor plants online near dwarka, new delhi - Birthright offers indoor plants for home online in India. At our online nursery, We have a team of talented brand shapers who have the capability, passion and knowledge to deal with clients.
As a Graphic Design Services In India, We have a team of talented and Creative Graphic Designers to Create Custom Graphics.
Get contact details and address of Renovation Services, Renovation Works firms and a home renovation services is Negotiable.
Use the Blink Monitor App for Android to check in on what's happening at home from anywhere at any time. The app connects your home to your phone in HD video
Getlisting Provides Complete Solution If You Facing The PlentyOfFish (POF). Can't log in? Issues in United States. If your file is being reviewed for some reason, such as being reported by another Plenty of Fish user, your account might be temporarily suspended while the company investigates.

hariom said...


Thanks for your Post! Please Visit Here:

subgiks

healthmagazineus


packersandmoversinKondapur said...

I like your post .
packers and movers in kondapur

Gati Packers and Movers said...


Packers and Movers in Panchkula

Packers and Movers in Chandigarh

Packers and Movers in Salem

Packers and Movers in Belgaum

Packers and Movers in Goa

Packers and Movers in Zirakpur

Packers and Movers in Mohali

Packers and Movers in jhansi

Packers and Movers in rohtak

Gati Packers and Movers Bangalore Charges