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;

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