Its the point I made a few days ago. With Apple and FB throwing money at FIO in the early years they had no incentive or probably time to focus on expanding the customer base and on new products geared towards small to medium businesses. When FB and Apple slowed spending, which was inevitable, FIO realized they were suddenly in a "Oh !@#$" situation. That's when the scrambled to make quick changes which they are doing. 9 out 10 times when founders leave, revenue slow and CFO leaves the company is in serious trouble. But I would suggest this time it might be different. It does not make sense that they are inside every major OEM (same way Intel was and is in PC's), signing up new blue chip hyperscale companies at a good clip and winning all sorts of awards for performance that clearly out paces the competition. $9.50 will likely be a gift, which CEO took full advantage of. Seems we could be only 1-3 quarters away from seeing some stability and reversal of FIO's business....which means stock goes back to 15-20 range in quick fashion.
I didn't listen to the Seagate call. I just found that comment interesting considering FIO has been talking about this transition for years and now everyone else is playing catch up. Something doesn't make sense with FIO and its recent revenue issues- must be lull in enterprise ramping which could just be a short term timing issue and not the gloom and doom everyone is talking about. All this transition talk and consolidation seems to be consistent with what FIO has been saying all along. CEO purchase Friday is just more validation that revenue is coming. Why else would he put $1,000,000 of his own money into FIO stock if he didn't see better days ahead?
"technology transition"...I wonder what he is referring to? Could it be the Paradigm shift FIO is talking about?...Coincidentally FIO is the recognized leader in that technology transition, aren't they?
Patience is right. What has happened, which is evident by the management changes and acquisitions, is that the reduced revenue by FB and Apple was not being replaced by enterprise revenue fast enough which has caused the revenue shirt fall. It looks worse than it is. The small to medium business is much larger that hyperscale and more steady revenue. That is ramping and when it does make up for the reduced spending by the two biggest customers then then stock will resume upward.
Note that FB and Apple have already bought over $500,000,000 worth of product so perhaps they simply don't need as much as they did in the past. That is not a reflection on FIO but just reality. It could be as simple as that and with enterprise ramping like it obviously is its just a matter of time. But bashers want to convince you the sky is falling.
Restructuring a company doesn't happen after only one quarter. Check back in 3 or 4 quarters and then judge the new management. Granted they don't sound very confident but too early to blame them at this point.