FUSION-IO, INC.

CIK:0001383729|SEC Filings

Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Revenue	$ 100,528	$ 87,650	$ 281,322	$ 326,334
Cost of revenue	49,291	39,521	127,319	133,734
Gross profit	51,237	48,129	154,003	192,600
Operating expenses:
Sales and marketing	39,334	33,584	109,621	88,837
Research and development	30,548	26,035	86,746	71,767
General and administrative	11,617	16,977	36,660	45,120
Total operating expenses	81,499	76,596	233,027	205,724
Loss from operations	(30,262)	(28,467)	(79,024)	(13,124)
Other income (expense):
Interest income	23	82	92	295
Interest expense	(45)	(44)	(157)	(92)
Other (expense) income, net	(27)	(40)	182	(54)
Loss before income taxes	(30,311)	(28,469)	(78,907)	(12,975)
Income tax benefit (expense)	(343)	8,422	(944)	(1,407)
Net loss	$ (30,654)	$ (20,047)	$ (79,851)	$ (14,382)
Net loss per common share:
Basic	$ (0.29)	$ (0.21)	$ (0.77)	$ (0.15)
Diluted	$ (0.29)	$ (0.21)	$ (0.77)	$ (0.15)
Weighted-average number of shares:
Basic	106,541	96,805	103,736	95,621
Diluted	106,541	96,805	103,736	95,621

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating activities:
Net loss	$ (79,851)	$ (14,382)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	17,666	10,768
Stock-based compensation	33,818	40,926
Excess tax benefit from stock-based awards	(8)	(448)
Other non-cash items	1,440	11
Changes in operating assets and liabilities:
Accounts receivable, net	(5,104)	6,244
Inventories	(1,499)	(11,632)
Prepaid expenses and other assets	26	59
Accounts payable	13,533	(704)
Accrued and other liabilities	(2,074)	8,588
Deferred revenue	(847)	6,382
Net cash provided by (used in) operating activities	(22,900)	45,812
Investing activities:
Business acquisition, net of cash acquired		(5,861)
Purchases of property and equipment	(8,732)	(10,898)
Net cash used in investing activities	(8,732)	(16,759)
Financing activities:
Repayment of notes payable		(623)
Proceeds from exercises of stock options	12,583	7,002
Issuance of restricted stock awards and restricted stock units, net of repurchases	(2,661)	(2,715)
Proceeds from issuance of common stock under employee stock purchase plan	5,298	5,093
Excess tax benefit from stock option exercises	8	448
Change in restricted cash	3,181	(4,843)
Net cash provided by financing activities	18,409	4,362
Effect of exchange rate changes on cash and cash equivalents	18	(7)
Net increase (decrease) in cash and cash equivalents	(13,205)	33,408
Cash and cash equivalents at the beginning of period	238,351	321,239
Cash and cash equivalents at the end of period	$ 225,146	$ 354,647

Balance Sheet Components (Tables)

9 Months Ended

Mar. 31, 2014

Cash and Cash Equivalents

Cash and cash equivalents were as follows (in thousands):


	June 30, 2013
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash	$	36,107	$	—	$	—	$	36,107
Money market funds		202,244		—		—		202,244

Total cash and cash equivalents	$	238,351	$	—	$	—	$	238,351

Restricted cash:
Cash	$	4,860	$	—	$	—	$	4,860


	March 31, 2014
	Amortized Cost		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash and cash equivalents:
Cash	$	22,824	$	—	$	—	$	22,824
Money market funds		202,322		—		—		202,322

Total cash and cash equivalents	$	225,146	$	—	$	—	$	225,146

Restricted cash:
Cash	$	1,679	$	—	$	—	$	1,679

Inventories

Inventories consisted of the following (in thousands):


	June 30, 2013		March 31, 2014
Raw materials	$	32,067	$	37,285
Work in progress		25,497		24,827
Finished goods		13,596		10,547

	$	71,160	$	72,659

Property and Equipment

Property and equipment consisted of the following (in thousands):


	June 30, 2013			March 31, 2014
Computer equipment	$	21,866		$	25,902
Leasehold improvements		15,446			16,256
Property and equipment		10,625			11,510
Software		4,674			5,027
Furniture and fixtures		4,294			4,700
Construction in progress		203			570

		57,108			63,965
Less accumulated depreciation and amortization		(21,836	)		(32,309	)

	$	35,272		$	31,656

Accrued and Other Current Liabilities

Accrued and other current liabilities consisted of the following (in thousands):


	June 30, 2013		March 31, 2014
Accrued compensation	$	25,146	$	27,854
Accrued warranty expense		5,241		5,853
Accrued other liabilities		14,038		13,179

	$	44,425	$	46,886

Long-term Other Liabilities

Long-term other liabilities consisted of the following (in thousands):


	June 30, 2013		March 31, 2014
Long-term deferred rent	$	9,209	$	8,615
Long-term deferred tax liability		4,900		4,648
Long-term other liabilities		5,312		1,937

	$	19,421	$	15,200