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Fusion-io posts 3Q loss, outlook weak; CFO leaving

SALT LAKE CITY (AP) -- Fusion-io Inc. on Wednesday posted a fiscal first-quarter loss as revenue dropped 27 percent, and the flash storage-drive maker also said that two top executives are leaving. The Salt Lake City company's revenue outlook for the current quarter was also short of Wall Street's projection, and shares fell in after-hours trading.

Fusion-io said that Dennis Wolf, its 59-year old chief financial officer and executive vice president since 2010, will be leaving for a private company. The company is looking for a new CFO. It also said that James Dawson, its chief sales officer and executive vice president, is retiring from the company at age 51. It expects to name his replacement soon.

Meanwhile, Fusion-io said that Gary Smerdon, 51, has joined the company as its executive vice president and chief strategy officer. He had worked for LSI Corp., a storage and networking chip company.

The management changes came as Fusion-io reported a loss of $27.9 million, or 28 cents per share, for the quarter that ended Sept. 30. That is compared with earnings of $3.9 million, or 4 cents per share, in the same months last year. After adjusting for acquisition expenses and other special items, it had a loss of 7 cents per share versus earnings of 14 cents per share last year.

Fusion-io's revenue fell to $86.3 million from $118.1 million.

Analysts polled by FactSet were anticipating a loss of 10 cents per share on revenue of $85.2 million.

Fusion-io said that it expects revenue for the current quarter will be up slightly compared with the first quarter. Analysts expected $114 million in sales for the October-December quarter — that would be an increase of 33 percent from the first quarter.

Shares fell $64, or 13 percent, to $11.34 in after-hours trading. Its shares fell 27 cents to close regular trading at $12.98, and are down 43 percent this year.