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Fusion-IO CEO: More Upside In Facebook, Tech

Fusion-IO, the largest data center provider to Facebook, has plenty of upside left in what its technology can do, its CEO said Monday.

“We’re just barely scratching the surface for the types of applications and services that this enables, for Facebook and for many other companies that are either in B-to-B or B-to-C kind of services,” David Flynn said on “Fast Money.”

The company’s storage memory platform increases data-processing speed, improving the efficiency of services from such customers as Apple, Facebook and Salesforce.com.

Flynn sidestepped a question about the possibility of Fusion-IO becoming a takeover target.

“We’re here building the business. We think we have an opportunity to become a very large company in a large market, so we’re just focused on driving business,” he said.

As to the issue of whether the company could maintain its growth rate, Flynn sounded positive.

“We came out of the gate at our IPO forecasting a 35 percent growth. We’re now at 65 to 70 percent for the year, so we thing we’re doing pretty well on the growth front,” he said. “But there’s a lot of opportunities out there. It’s a nascent market.”

Fusion-IO shares closed up 11 percent at $24.72.

The company, based in Salt Lake City, reported weak operating margins last month.

Flynn said the company was working on narrowing its loss.

“We’re growing into a market that stands to be very large, so we’re tuning our growth to try to accelerate the rate at which we’re growing,” he said.

Flynn didn’t see another technology bubble occurring despite attention to high-tech companies and IPOs.

“I think technology is what drives growth in the economy, so it’s hard to say how much leverage that gives because of the potential improved efficiencies as all of our lives become more efficient,” he said.

Pete Najarian, cofounder of OptionMonster.com, said he was keeping an eye on margins.

“I love the company, I love what they do, but I think because of the competition you just wonder, how much more of these margins are going to start to come in? I’m concerned about that,” he said.

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Trader disclosure: On Feb. 6, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; P. Najarian is long AAPL; P. Najarian is long BAC calls; P. Najarian is long C; P. Najarian is long JPM calls; P. Najarian is long MS; P. Najarian is long YHOO; Grasso is long AVAV; Grasso is long ASTM; Grasso is long BA; Grasso is long D; Grasso is long LIT; Grasso is long MHY; Grasso is long MO; Grasso is long PFE; Grasso is long PRST; Grasso is long S; Grasso is long XLU; Najarian is long FIO; Najarian is long MOTR; Brown is long AAPL; Brown is long JPM; Brown is long COP; Brown is long BRK.B;

For Steve Grasso
Stuart Frankel & its partners own CSCO

Stuart Frankel & its partners own CUBA

Stuart Frankel & its partners own GERN

Stuart Frankel & its partners own HPQ

Stuart Frankel & its partners own HSPO

Stuart Frankel & its partners own MU

Stuart Frankel & its partners own NYX

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Stuart Frankel & its partners own XRX

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For Brian Kelly
Shelter Harbor Capital is long SPY calls

Shelter Harbor Capital is long TLT

Shelter Harbor Capital is long US treasuries

For John Blackledge
The subject company (NFLX) currently is, or was during the 12-month period preceding the date of distribution of this report, a client of Credit Suisse.

Credit Suisse provided investment banking services to the subject company (NFLX) within the past 12 months.

Credit Suisse expects to receive or intends to seek investment banking related compensation from the subject company (NFLX) within the next 3 months.

As of the date of this report, Credit Suisse Securities (USA) LLC makes a market in the securities of the subject company (NFLX).

For David Flynn
No disclosures

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Campbell is long the March 2012 S&P 500 futures contract

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Dicker is long GLEN

Dicker is long Oil

Dicker is short HFC

For Jagadish Iyer
Piper Jaffray usually provides bids and offers for the securities of Corning Incorporated and will, from time to time, buy and sell Corning Incorporated securities on a principal basis. Piper Jaffray research analysts receive compensation that is based, in part, on overall firm revenues, which include investment banking revenues.

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