Former Tech IPO Darling Fusion-IO Misses On Revenues: Shares Take A Nose Dive

Former HP CEO Shane RobisonHewlett-PackardShane Robison

Shares of Fusion-IO are tanking in after-hours trading Wednesday night, thanks to disappointing quarterly results.

Shares are down by about 19% to about $US12.

Fusion-IO reported revenue of $US106.1 million, essentially flat from $US106.6 million reported in the year-ago quarter. Analysts were expecting $US110.2 million. Net loss was $US23.8 million, or 3 cents a share, which met analysts expectations.

The company makes enterprise storage drives based on flash, the same storage used in smartphones and thumb drives. It is known as the biggest of the enterprise flash companies, with Facebook and Apple as customers. It’s also known for employing Apple cofounder Steve Wozniak.

This was the first earnings report for Fusion-IO’s new CEO Shane Robison, who joined mid-quarter in May after the two cofounders, David Flynn (CEO) and Rick White (CMO), suddenly left the company. Robison’s last job was as Chief Strategy Officer for HP, a post he left in October, 2011.

The company blamed higher marketing costs and costs related to absorbing 60 employees from its acquisition of Colorado-based NexGen Storage, reports Reuters’ Lehar Maan. The company now has about 940 employees.

Fusion-IO was one of the most anticipated tech IPOs in 2011. But last month Forbes Nathan Vardi called the stock’s performance a “debacle.” He explained:

“It went public in 2011 at a sky high multiple of 41 times the previous year’s sales, valuing the company at $US1.48 billion. Fusion IO raised $US233 million in the IPO by selling shares for $US19 each and the shares jumped to as high as $US39.60 in its first five months as a public company. Since then the shares have crashed.”

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