Monday, August 12, 2013

Investopedia: Fusion-io Tries To Hit Reset, But The Street Will Carry A Grudge

By no means is it unheard of for tech companies, including storage companies, to stumble in their early years. With Fusion-io's (NYSE:FIO) fiscal fourth quarter and guidance, management can certainly check that box. The trouble now is the question of how to weigh out the balance of the company's interesting enterprise flash storage technology (and the growing marketing opportunity) with the likelihood that the company can and will execute on that opportunity.

Fusion-io deserves the time it's going to spend in the doghouse. Earlier management was brash and bold, and the Street doesn't necessarily have a problem with that, but the failure to deliver is now an issue. I don't particularly like this company, but even I have to say that the valuation is now at a point where the stock is possibly interesting again if the company doesn't have to reset guidance to a lower level once again.

Please read the full piece here:

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