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To: Johnny Canuck who wrote (49138)	1/31/2013 3:27:16 AM
From: Johnny Canuck	Read Replies (2) \| Respond to of 67692

Fusion-io’s Flash Madness Slows Down as Apple and Facebook Trim Orders January 30, 2013 at 3:53 pm PT TweetinShare.SharePrint Shares of Fusion-io, the company that uses flash memory to enhance servers in data centers, are falling like crazy. Seems forecasts for the coming quarter came in below the aggressive projections of Wall Street analysts. Having risen more than 3 percent to $20.09 on the New York Stock Exchange today, Fusion’s shares fell by more than 17 percent to $16.79 in after-hours trading after the company said it expects slower revenue growth as major customers Facebook and Apple slowed orders. CFO Dennis Wolf claimed the timing of orders from those two companies slipped by two quarters. Together Facebook and Apple account for 51 percent of Fusion’s business. I just got off the phone with CEO David Flynn, who told me that having two customers account for so much of its business was always a risk. But? When Fusion first IPO’d in 2011, Apple and Facebook accounted for 70 percent of sales, so it could have been worse. “We knew there was going to be some risk with customer concentration,” he said. “Over time the concentration will work itself out,” Flynn told me. As yet, no other single customer accounts for more than 10 percent of revenue, and therefore requires disclosure. But five of the 10 customers that bought more than $1 million in Fusion-io products in the last quarter also bought its newer product ioScale. Also, sales in Europe grew 100 percent year on year, while sales in the Asia Pacific region grew 130 percent. Fusion-io reported per-share earnings of 2 cents in the quarter, versus 7 cents a year ago. Revenue rose more than 40 percent to $120.6 million. The results fell short of analyst expectations, which called for earnings of 8 cents on $120.3 million. allthingsd.com [Johnny: I don't know this company at all, but the earnings do bring up some interesting questions. - Have AAPL and FB found alternative suppliers. It sounds like their products would have low barriers to entry. They are just flash drives essentially. - Alternatively, has the increases in traffic at AAPL and FB increased at a slower rate than expected. Most people only have 5 additional Apps on their phone that they use consistently. From my own experience there is a lot of novelty Apps that people use once or twice and then unintall or don't use again. It could mean that traffic at the AAPL Apps store has slowed as usage patterns of the owners of the phone mature. From the FB side it may sugggest that the amount time people spend on Facebook is declining even as they sign up new users. As a result the growth in overall traffic is slower than projected. ]