FUSION-IO UPDATE: IPO WEEK OF JUNE 9 (Quote, Dow Jones, Bloomberg)

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Back to Calendar Week of Expected Pricing 06/09/2011
Company Name Fusion-io,Inc.
Proposed Ticker FIO
CUSIP 36112J107
Business Description A next generation storage memory platform for data decentralization.
Lead Underwriter Credit Suisse Securities (USA) LLC,Goldman, Sachs & Co, J.P. Morgan Securities LLC, Morgan Stanley & Co. Incorporated.
Co-Managers N/A
Initial Shares 12300000
Revised Initial Shares
Initial Price $13.0
Revised Price
Final Price
Final Ticker

DOW JONES

DOW JONES NEWSWIRES

 

Fusion-io Inc. unveiled estimated terms for a bigger-sized initial public offering of its stock to raise funds for expansion.

The data company expects to offer at least 12.3 million shares at an estimated price of $13 to $15 each, according to its filing with the U.S. Securities and Exchange Commission.

Fusion-io plans to offer at least 10.8 million shares, while selling shareholders intend to offer at least 1.5 million shares.

The company in March initially had filed plans for an IPO of up to an estimated $150 million.

Fusion-io specializes in data decentralization, which it said improves the processing capability of a data center by moving active data to the server where it is being processed from centralized storage.

The tech sector–and particularly the data storage field–has benefited of late from increased information-technology spending by businesses.

The company reported that its loss narrowed to $1.2 million in the nine months ended March 31 as revenue soared to $125.5 million amid stronger volume. Fusion-io said revenue from its 10 largest customers accounted for 91% of its revenue in the latest period, with Facebook Inc. accounting for 47% of the total.

Prior to the quarter ended March 31, the company has posted quarterly losses since its inception. The company, which was founded in December 2005, sold its first products in April 2007.

Fusion-io shares have been approved for listing on the New York Stock Exchange under the symbol FIO

BLOOMBERG

Fusion-io Inc., a maker of flash- memory technology for companies including Facebook Inc., plans to sell shares in its initial public offering for $13 to $15 apiece, valuing the company at as much as $1.17 billion.

Fusion-io said it will sell 10.8 million shares along with an additional 1.54 million to be sold by other stockholders, according to a regulatory filing today. The stock will trade on the New York Stock Exchange under the ticker FIO.

The Salt Lake City-based company aims to raise as much as $212.2 million, up from the $150 million offering announced in March. The increase follows last week’s IPO of LinkedIn Corp., which more than doubled in value on its first day of trading, even after raising the per-share price. Founded in 2005, Fusion- io is benefiting from a shift among corporations to flash memory from traditional storage drives.

Flash has no moving parts and can access data more quickly than disks, which rely on spinning platters to hold information. Facebook, owner of the world’s biggest social network, is Fusion-io’s largest customer, accounting for 47 percent of revenue in the nine months ended March 31.

Fusion-io has raised more than $110 million in venture capital, and it counts Apple Inc. co-founder Steve Wozniak among its top executives.

Sales Surge

Sales in the first quarter surged fivefold to $67.3 million, from $13.4 million a year earlier, according to the filing. Assuming the same revenue over the next three quarters and a $1.17 billion valuation, Fusion-io will be valued at 4.35 times sales, compared with a price-to-sales ratio of about 11 for LinkedIn when its shares started trading.

Fusion-io turned profitable in the first quarter, reporting net income of $7.04 million, compared with a $6.71 million loss a year earlier.

The company’s biggest shareholder is venture firm New Enterprise Associates, which owns 39 percent of the company. Lightspeed Venture Partners holds 13 percent, and Chief Executive Officer David Flynn controls 10 percent.

Fusion-io said in January that it’s shipped more than 15 petabytes of flash memory to corporations in the past year — enough to hold more than 199 years’ worth of continuously played high-definition video. Fusion-io combines software and memory chips to speed the rate that server computers can access data.

Its products are sold through Hewlett-Packard Co. (HPQ), International Business Machines Corp. (IBM) and Dell Inc. The bulk of Fusion-io’s purchases come from a limited number of partners, with the 10 largest customers accounting for 91 percent of revenue in the nine months ended March 31.

“As a consequence of our limited number of customers and the concentrated nature of their purchases, our quarterly revenue and operating results may fluctuate from quarter to quarter and are difficult to estimate,” the company said in today’s filing.

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