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					                                                                                       Company Report
                                                                                       April 25, 2013




  Fusion-IO                                                                            Buy
  Beat and Raise as Company Moves to SME Market with                                   FIO
  NexGen Acquisition; Adjusting Estimates, Reiterate Buy                               Price: Close $16.63
  Our Call                                                                             Price Target $27.00
  Company addresses core market concern of steep 4Q13 ramp with solid March
  beat and slight guide above for June. Management's confidence about their ability
                                                                                       Data Networking and Storage
  to grow along with expansion at Facebook and Apple implies limited competitive
  pressure at this point. Stock has solid upside as Core continues to grow and the     Alex Kurtz
  company has opportunities to further diversify Strategic business over next few      (415) 402-6015
  quarters. Reiterate $27 PT.                                                          akurtz@sterneagee.com
  ■ What's Changed Several key takeaways including: 1) the growth in ioScale           Amelia Harris
    orders greater than $5M (from 5 to 8 Q/Q) that signals the company's ability       (415) 402-6018
    to attract new Webscale size customers that can help diversify the business        aharris@sterneagee.com
    longer-term and 2) the $119 million acquisition of NexGen, a hybrid PCIe/HDD
    storage array for the Small and Medium sized business marketplace. This is         Company Data
    tacit admission in our view that the ioDrive/ION platform was just too much        Rating                                    Buy
    performance for a sizable segment of the market (company claims $16 billion)       Price: Close                            $16.63
                                                                                       Price Target                            $27.00
    but should provide their channel (20% of revenue) with a lower priced, broader
                                                                                       52-Week Range                  $13.99 - $32.63
    solution. Most important, this quarter is going to be judged on the June quarter   Market Capitalization (M)            $1,609.9
    guide that was slightly above consensus and does not include material NexGen       Shares Outstanding (M)                    96.8
    revenue. Commentary from management suggests a stabilizing to improving            Avg. Daily Vol. (000)                  2,869.4
                                                                                       Dividend                                 $0.00
    demand picture in June from Apple/Facebook. While NexGen revenue has not
                                                                                       Dividend Yield                           0.0%
    been disclosed, we would assume a revenue multiple on forward estimates at         Assets (M)                              $541.0
    5-6x (Compellent is best comp at 4.3x) which would imply potentially $20-25
    million in forward 12-month revenue (based on historical M&A comps relative        Revenue ($M) 2013E 2014E 2015E
    to market segment).                                                                FY                 436.3     568.0       707.0
                                                                                        (Prev)            428.7       -         722.0
  ■ Guidance FIO guided to $110 million in revenue, 56-58% GM and non-GAAP
    operating loss of $5 million for F4Q13 vs. consensus at $108.5 million and
    ($0.1). We are now forecasting FY2013, FY2014 and FY2015 revenue and non-
    GAAP EPS of $436.3/$0.20, $568.0/$0.13, and $707.0/$0.33 from $428.7M/
    $0.16, $568.0M/$0.13 and $722.0M/$0.33, respectively (lowering FY2015
    revenue estimates to adjust for a slightly higher mix of ioScale revenue, lower
    $/GB).

  ■ Valuation Given the volatility with the Strategic vs. Core revenues, we have
    decided to move to a sum-of-parts valuation approach. Employing a 2x revenue
    multiple on our FY2014 Strategic estimate and 5.6x our FY2014 Core estimate
    yields our $27 PT. We see this as a way to better decouple the risk/valuation
    parameters in lieu of a blended average.



                                                                                       Price Performance
  FYE Jun         2013E       2013E      2014E      2014E                  2015E           35

                  (Prev)      (Curr)     (Prev)     (Curr)                 (Curr)          30
  EPS ($)                                                                                  25
  Q1 (Sept)                    0.14A      (0.01)     (0.02)                    -
                                                                                           20
  Q2 (Dec)                     0.13A       0.02       0.01                     -
                                                                                           15
  Q3 (Mar)         (0.07)     (0.03)A                 0.05                     -
  Q4 (Jun)         (0.03)      (0.04)     0.07        0.08                     -           10
                                                                                           Apr-12    Jul-12 Oct-12    Jan-13    Apr-13
  FY EPS            0.16        0.20                  0.13                   0.33               Fusion-IO
  P/E                          83.2x                 127.9x                 50.4x               NASDAQ Composite Index (COMP)

                                                                                       Source: FactSet

   Important Disclosures regarding Price Target Risks, Valuation Methodology, Regulation Analyst Certification,
Investment Banking, Ratings Definitions, and potential conflicts of interest begin on Page I of the Appendix Section.
                    800 Shades Creek ParkwaySuite 700Birmingham, AL 35209205-949-3500
                                 Sterne, Agee & Leach Inc. is Member NYSE, FINRA, SIPC
                                                                                April 25, 2013

Fusion-io Reports F3Q13 Results FIO reported F3Q13 revenue and non-GAAP EPS of $87.7M
and ($0.03) versus our estimates of $80.0M and ($0.07) and consensus at $80.4M and ($0.07). The
company drove gross margin to 59.9% versus our estimate of 58.7% and down from a near record
high 61.9% in F2Q13. Revenue from Strategic accounts came in at 22% of total, down from 49.9%
in F2Q13 (at the high end of the $15-20M guidance), while the Core business grew 61% Q/Q and
13% Y/Y.

Public Companies Mentioned:
Apple Inc. (AAPL, $405.46, Not Rated)
Dell (DELL, $13.30, Not Rated)
Facebook (FB, $26.11, Bhatia--Buy)




                                                                                      Page 2
                                                                                                                                                                                                                                                                                                                   April 25, 2013
STERNE AGEE
Alex Kurtz 415.402.6015                                                                                                                            CY11A Rev            $         297.5 CY12A Rev            $         439.5 CY13E Rev                   $         450.7 CY14E Rev              $        642.0
Amelia Harris 415.402.6018                                                                                                                         CY11A EPS            $         0.45 CY12A EPS             $          0.42 CY13E EPS                   $         (0.08) CY14E EPS             $         0.25


Fusion-io, Inc. Income Statement

                                                                                        Sep                   Dec                   Mar                  Jun                                  Sep                Dec                   Mar                   Jun
CY ests in M                                FY2011A              FY2012A                1QA                   2QA                   3QA                  4QE                FY2013E          1QE                 2QE                   3QE                   4QE                   FY2014E          FY2015E
Total Revenue                           $          197.2 $              359.3 $               118.1 $               120.6 $                 87.7 $             110.0 $           436.3 $            118.0    $         135.0 $               150.0 $               165.0 $              568.0 $          707.0
   Y/Y Growth                                     444.5%                82.2%                 58.8%                 43.3%                  -7.0%                3.2%             21.4%              -0.1%              12.0%                 71.1%                 50.0%                30.2%            24.5%
 Q/Q Growth                                             -                    -                10.8%                  2.1%                 -27.3%               25.5%                  -              7.3%              14.4%                 11.1%                 10.0%                     -                 -
  % of Annual Revenue                                   -                    -                27.1%                 27.6%                  20.1%               25.2%                  -             20.8%              23.8%                 26.4%                 29.0%                     -                 -
Cost of Revenue                         $           84.0     $          158.8       $          47.9       $          46.0       $          35.1    $            46.7    $        175.7   $           49.9    $          57.7       $          62.9       $          68.6       $        239.1   $        296.9
Gross Profit                            $          113.2     $          200.5       $          70.2       $          74.6       $          52.5    $            63.3    $        260.6   $           68.1    $          77.3       $          87.1       $          96.4       $        328.9   $        410.1
   Gross Margin                                    57.4%                55.8%                 59.5%                 61.9%                 59.9%                57.5%             59.7%              57.7%              57.3%                 58.1%                 58.4%                57.9%            58.0%
Research & Development                  $           25.7     $           50.9       $          17.1       $          17.8       $          27.2    $            29.8    $         92.0   $           31.4    $          33.1       $          33.4       $          34.1       $        131.9   $        147.2
   % of Total Revenue                              13.0%                14.2%                 14.5%                 14.8%                 31.0%                27.1%             21.1%              26.6%              24.5%                 22.2%                 20.7%                23.2%            20.8%
Sales & Marketing                       $           53.9     $           81.1       $          22.9       $          26.2       $          22.4    $            26.8    $         98.3   $           27.5    $          29.2       $          30.7       $          33.7       $        121.0   $        142.9
   % of Total Revenue                              27.3%                22.6%                 19.4%                 21.7%                 25.5%                24.4%             22.5%              23.3%              21.6%                 20.5%                 20.4%                21.3%            20.2%
General & Administrative                $           15.3     $           26.7       $           7.2       $           9.1       $          10.1    $            12.0    $         38.5   $           12.4    $          12.8       $          13.1       $          13.4       $         51.7   $         56.5
   % of Total Revenue                               7.8%                 7.4%                  6.1%                  7.5%                  8.6%                 8.6%              8.8%              10.5%               8.3%                  8.6%                  8.6%                 9.1%             8.0%
Total Op Ex                             $           94.9     $          158.7       $          47.2       $          53.1       $          59.7    $            68.7    $        228.7   $           71.3    $          75.0       $          77.1       $          81.2       $        304.7   $        346.6
EBIT                                    $           18.3     $           41.8       $          23.0       $          21.5       $          (7.2)   $            (5.4)   $         31.9   $           (3.2)   $           2.3       $          10.0       $          15.2       $         24.2   $         63.5
   % of Total Revenue                               9.3%                11.6%                 19.5%                 17.8%                 -8.2%                -4.9%              7.3%              -2.7%               1.7%                  6.6%                  9.2%                 4.3%             9.0%

Total other income (expense)            $           (0.9)    $            0.3       $           0.1       $           0.1       $          (0.0)   $            (0.0)   $          0.1   $           (0.0)   $          (0.0) $               (0.0)      $          (0.0) $              (0.0) $          (0.0)
EBT                                     $           17.4     $           42.1       $          23.0       $          21.6       $          (7.2)   $            (5.4)   $         32.0   $           (3.2)   $           2.3 $                10.0       $          15.2 $               24.2 $           63.5
Tax Rate                                                 -              10.9%                 35.3%                 36.6%                 56.1%                36.0%             31.4%              36.0%              36.0%                 36.0%                 36.0%                36.0%            36.0%
Income tax                              $            1.7     $            4.6       $           8.1       $           7.9       $          (4.0)   $            (1.9)   $         10.0   $           (1.2)   $           0.8 $                 3.6       $           5.5 $                8.7 $           22.9
Non GAAP Net Income                     $           15.7     $           37.5       $          14.9       $          13.7       $          (3.2)   $            (3.4)   $         22.0   $           (2.1)   $           1.4 $                 6.4       $           9.7 $               15.5 $           40.6
Diluted Shares
Diluted Shares                                      49.4                106.4                 108.4                 109.0                  96.8                 98.0              103.1             100.0              115.0                 117.0                 119.0                112.8            124.0
Non GAAP EPS                            $          (0.24) $              0.35       $          0.14       $          0.13       $         (0.03) $             (0.04) $            0.20 $           (0.02) $            0.01       $          0.05       $          0.08       $         0.13 $           0.33
   Y/Y Growth                                            -                      -                     -                     -                   -                    -           -44.9%                   -                    -                     -                     -           -34.3%           154.1%

   Strategic                            $          120.3     $          196.7 $                66.1 $                60.1 $                 19.4 $               30.0 $           175.6 $             43.0 $            55.0 $             65.0 $                70.0 $                 233.0 $          297.0
   Y/Y Growth                                            -              63.5%                 61.7%                 25.4%                 -62.6%               -46.4%            -10.7%             -35.0%             -8.5%             235.5%                133.3%                   32.7%            27.5%
  Q/Q Growth                                           -                     -                18.1%                 -9.1%                 -67.8%                54.8%                  -             43.3%             27.9%              18.2%                  7.7%                        -                 -
  % of Revenue                                     61.0%                54.7%                 56.0%                 49.9%                  22.1%                27.3%             40.3%              36.4%             40.7%              43.3%                 42.4%                   41.0%            42.0%

   Core                                 $           76.9     $          162.7 $                52.0 $                60.4 $                68.3 $               80.0 $           260.7 $             75.0 $             80.0 $                85.0 $                95.0 $              335.0 $          410.0
   Y/Y Growth                                            -             111.5%                 55.3%                 67.0%                 61.0%                58.1%             60.3%              44.3%              32.4%                 24.5%                 18.8%                28.5%            22.4%
  Q/Q Growth                                           -                     -                 2.7%                 16.3%                 13.0%                17.2%                  -             -6.3%               6.7%                  6.3%                 11.8%                     -                 -
  % of Revenue                                     63.9%                45.3%                 44.0%                 50.1%                 77.9%                72.7%             59.7%              63.6%              59.3%                 56.7%                 57.6%                59.0%            58.0%




Source: Company reports, Sterne Agee estimates, Non-GAAP presentation, (m)




                                                                                                                                                                                                                                                                                                                         Page 3
                                                                                                                                                                                                                              April 25, 2013
STERNE AGEE
Alex Kurtz 415.402.6015
Amelia Harris 415.402.6018

Fusion-io, Inc. Balance Sheet

                                                          Jun FY10              Mar FY11             Jun FY11          Sep FY12          Dec FY12          Mar FY12         Jun FY12          Sep FY13          Dec FY13
                                                            4QA                   3QA                  4QA               1QA               2QA               3QA              4QA               1QA               2QA

Assets:
      Cash and Equivalents                            $          21.2       $         15.9       $         219.6   $        201.9    $        307.4    $        294.7   $         321.2   $        353.9    $        368.5
      Accounts Receivables                            $           5.6       $         13.1       $          44.4   $         33.7    $         27.4    $         49.3   $          56.7   $         65.7    $         56.0
      Inventories                                     $          25.1       $         39.0       $          35.6   $         71.5    $         65.0    $         72.0   $          59.5   $         67.2    $         74.2
      Prepaid expenses and other current assets       $           1.0       $          3.5       $           3.9   $          3.4    $          4.0    $          6.4   $           9.2   $          8.6    $          9.6
   Total Current Assets                               $          52.9       $         71.6       $         303.5   $        310.5    $        403.7    $        422.3   $         446.6   $        495.4    $        508.3

       Property Plant and Equipment                   $           5.5       $         12.2       $          13.7   $         17.0    $         21.6    $         26.1   $          31.2   $         33.9    $         34.5
       Intangible assets, net                         $           -         $          -         $           -     $         10.1    $          9.5    $          8.8   $           8.2   $          7.5    $          6.9
       Goodwill                                       $           -         $          -         $           -     $         54.8    $         54.8    $         54.8   $          54.8   $         54.8    $         54.8
       Other assets                                   $           1.0       $          1.8       $           0.1   $          0.1    $          0.1    $          0.2   $           0.2   $          0.4    $          0.6
Total Assets                                          $          59.5       $         85.6       $         317.3   $        392.5    $        489.6    $        512.2   $         541.0   $        591.9    $        605.1

Liabilities & Shareholders' Equity:
        Accounts payable                              $          11.1       $         12.5       $           9.3   $         24.1    $         11.8    $         11.5   $           9.8   $         23.8    $          9.1
        Accrued liabilities                           $           8.9       $         10.2       $          15.0   $         16.2    $         18.4    $         19.4   $          29.2   $         31.6    $         33.9
        Advances from receivable finance agreements   $           -         $          -         $           -     $          -      $          -      $          -     $           -     $          -      $          -
        Deferred revenue                              $           0.8       $          7.1       $           9.0   $          8.6    $         11.7    $         15.9   $          20.7   $         25.4    $         27.2
   Total Current Liabilities                          $          20.8       $         29.8       $          33.4   $         48.8    $         41.9    $         46.8   $          59.7   $         80.8    $         70.2

       Deferred revenue, non current                  $           -         $          3.6       $           3.0   $          2.8    $          4.2    $          6.6   $           8.2   $          9.1    $         10.9
       Other long-term liabilities                    $           0.2       $         10.4       $           6.5   $          6.2    $          6.8    $          8.9   $          12.3   $         12.8    $         13.6
Total Liabilities                                     $          21.0       $         43.8       $          42.8   $         57.8    $         52.9    $         62.3   $          80.1   $        102.7    $         94.7

Total Shareholders' Equity                            $          38.4       $         41.8       $         274.4   $        334.7    $        436.7    $        449.9   $         460.9   $        489.2    $        510.4

Total Liabilities and Shareholders' Equity            $          59.5       $         85.6       $         317.3   $        392.5    $        489.6    $        512.2   $         541.0   $        591.9    $        605.1

DSO                                                             46.0x                 17.6x                57.0x             41.0x             32.0x             51.0x            52.0x             54.0x             44.0x
Deferred Revenue, Total                               $          0.8        $         10.7 $               12.0    $         11.3 $            15.9 $            22.5 $           28.9    $         34.5 $            38.1
Accounts Payable Days                                            1.1x                  5.0x                 2.2x              2.3x              2.3x              3.9x             4.3x              4.0x              2.8x
Inventory Days                                                 194.8x                 55.7x               138.5x            117.8x            149.3x            136.6x           130.8x             63.2x            138.3x
Inventory Turns                                                  0.5x                  1.6x                 0.7x              0.8x              0.6x              0.7x             0.7x              1.4x              0.7x
Annualized Payable Days                                                 -                    -             76.3x             62.1x             19.3x            38.4x             23.2x             33.4x              9.3x

Source: Company reports




                                                                                                                                                                                                                                    Page 4
                                                                                                                                                                                                                                                      April 25, 2013
STERNE AGEE
Alex Kurtz 415.402.6015
Amelia Harris 415.402.6018

Fusion-io, Inc. Cash Flow Statement

                                                                      Jun FY10          Sep FY11          Mar FY11          Jun FY11          Sep FY12          Dec FY12          Mar FY12          Jun FY12          Sep FY13          Dec FY13
                                                                        4QA               1QA               3QA               4QA               1QA               2QA               3QA               4QA               1QA               2QA

Cash flows provided by (used for) operating activities
Net income (loss)                                                 $        (11.9)   $         (5.8) $           7.0     $          5.8    $          7.2    $         (5.7) $           (4.7) $           (2.4)   $         3.9     $          1.7
Adjustments to reconcile net income to net cash from operations
            Depreciation & Amortization                           $          0.5    $          0.6    $         1.8     $          1.3    $          1.6    $          2.1    $         2.4     $         2.9     $         3.2     $         3.6
            Compensation Expense Related to Stock Comp            $          0.6    $          0.9    $         1.7     $          4.9    $          9.0    $          9.4    $        11.5     $        12.2     $        13.9     $        13.9
            Allowance for Doubtful Accounts                       $          -      $          -      $         -       $          -      $          -      $          -      $         -       $         -       $         -       $         -
            Allowance for Sales Returns                           $          -      $          -      $         -       $          -      $          -      $          -      $         -       $         -       $         -       $         -
            Provision for Inventory                               $          -      $          -      $         -       $          -      $          -      $          -      $         -       $         -       $         -       $         -
            Non-cash tax benefit from business acquisition        $          -      $          -      $         -       $          -      $         (2.8)   $         (1.8)   $         -       $        (0.7)    $         -       $         -
            Deferred Income Taxes                                 $          -      $          -      $         -       $          -      $          -      $          -      $         -       $         -       $         -       $         -
            Excess Tax Benefit from Stock Based Comp              $          -      $          -      $         -       $         (1.2)   $          -      $          -      $         -       $         -       $        (4.4)    $        (5.0)
            Other                                                 $          0.1    $          0.0    $         0.2     $          2.6    $         (0.8)   $          0.7    $         0.0     $         0.0     $         -       $         -

           Operating changes in assets and liabilities
                       Accounts receivable                        $          1.4    $         (8.2)   $        (4.7)    $        (31.2)   $         10.6    $          6.4    $        (21.9)   $        (7.4)    $        (9.0)    $          9.7
                       Inventories                                $        (14.4)   $         (5.9)   $         9.5     $          3.3    $        (35.9)   $          6.6    $         (7.0)   $        12.5     $        (7.7)    $         (7.0)
                       Prepaid Expenses & Other                   $         (0.4)   $         (1.1)   $        (0.9)    $          1.4    $          0.5    $         (0.6)   $         (2.5)   $        (2.9)    $         0.5     $         (1.3)
                       Other Assets                               $          -      $          -      $         -       $          -      $          -      $          -      $          -      $         -       $         -       $          -
                       Accounts Payable                           $          5.1    $         (3.4)   $        (1.2)    $         (2.0)   $         14.1    $        (12.3)   $         (0.3)   $        (1.7)    $        14.0     $        (14.7)
                       Income Taxes Payable                       $          2.6    $          -      $         -       $          -      $          -      $          -      $          -      $         -       $         -       $          5.6
                       Accrued Litigation Loss                    $          -      $          -      $         -       $          -      $          -      $          -      $          -      $         -       $         -       $          -
                       Accrued Liabilities                        $          -      $         (1.5)   $         6.2     $          5.5    $          0.2    $          4.2    $          3.5    $        11.6     $         8.7     $          -
                       Deferred Revenues & Other                  $          0.5    $          4.3    $         5.9     $          1.3    $         (0.7)   $          4.6    $          6.5    $         6.4     $         5.6     $          3.7
Net cash provided by (used for) operations                        $        (15.9)   $        (20.1)   $        25.5     $         (8.3)   $          3.1    $         13.5    $        (12.4)   $        30.6     $        28.7     $         10.2
Cash flows provided by (used for) investing activities
            Proceeds from Short-term investments                  $        (12.0)   $         12.0    $          -      $          -      $          0.0    $          -      $          -      $          -      $          -      $          -
            Purchases of short-term investments                   $          -      $          -      $          -      $          -      $          -      $          -      $          -      $          -      $          -      $          -
            Purchases of PPE                                      $         (1.4)   $         (0.6)   $         (7.5)   $         (3.0)   $         (4.2)   $         (6.1)   $         (6.3)   $         (7.4)   $         (5.2)   $         (3.5)
            Other Assets                                          $          -      $          -      $          -      $          0.2    $        (17.6)   $          -      $          -      $          -      $          -      $          -
Net cash provided by (used for) investing activities              $        (13.4)   $         11.3    $         (7.5)   $         (2.9)   $        (21.8)   $         (6.1)   $         (6.3)   $         (7.4)   $         (5.2)   $         (3.5)
Cash flows provided by (used for) financing activities
            Repurchase of common stock                            $          -      $          -      $          -      $         (1.2)   $          -      $        (1.1)    $         (0.0)   $          -      $          -      $          -
            Proceeds from Exercise of Stock Options, ESOP         $          0.1    $          0.0    $          0.6    $          1.0    $          0.1    $         3.3     $          6.0    $          2.9    $          5.7    $          3.8
            Excess Tax Benefit from Stock Based Comp              $          -      $          -      $          -      $          1.2    $          -      $         1.8     $          -      $          0.7    $          4.4    $          5.0
            Payment of Obligations under Capital Leases           $         (4.0)   $         (0.1)   $         (6.2)   $         (5.0)   $         (0.1)   $        (0.0)    $         (0.0)   $          -      $          -      $          -
            Advances under Receivable Financing Agreements        $          -      $          -      $          -      $          -      $          -      $         -       $          -      $          -      $          -      $          -
            Payment of Offering Costs                             $          -      $          -      $          -      $          -      $          -      $         -       $          -      $          -      $          -      $          -
            Payment to acquire Treasury Stock & Other             $          -      $          8.7    $          -      $          -      $          -      $         -       $          -      $         (0.1)   $         (1.1)   $         (0.8)
Net cash provided by (used for) financing activities              $         34.2    $          8.7    $         (5.6)   $        214.8    $          1.0    $        98.1     $          5.9    $          3.5    $          9.1    $          8.0

FX Impact                                                         $         (0.0)   $          0.0 $            0.0     $          0.0    $         (0.1) $          (0.0) $             0.0 $           (0.0)    $         0.1     $        (0.0)
Net increase (decrease) in cash and cash equivalents              $          4.9    $         (0.1) $          12.4     $        203.6    $        (17.7) $         105.5 $            (12.8) $          26.6     $        32.6     $        14.6
Cash and Cash Equivalents, beginning of period                                                        $         -       $          -      $       203.6     $       186.0     $       291.5     $       278.7     $       305.4     $       337.9
Cash and Cash Equivalents, end of period                                                              $        12.4     $        203.6    $       186.0     $       291.5     $       278.7     $       305.4     $       337.9     $       352.6

Source: Company reports




                                                                                                                                                                                                                                                            Page 5
                                                                                                                              April 25, 2013


                                                       APPENDIX SECTION
Company Description:
FIO's purpose-built storage memory platform integrates the company's industry standard server-based hardware with virtualization
software and incorporates automated data-tiering and platform management software. The company's platform significantly improves
the processing capabilities within a datacenter by relocating process-critical, or active, data from centralized storage to the server
where it is being processed. The company is headquartered in Salt Lake City, Utah.

IMPORTANT DISCLOSURES:
Regulation Analyst Certification:
I, Alex Kurtz and Amelia Harris, hereby certify the views expressed in this research report accurately reflect my personal views about
the subject security(ies) or issuer(s). I further certify that no part of my compensation was, is, or will be, directly or indirectly, related
to the specific recommendations or views expressed by me in this report.

Research Disclosures:
Sterne, Agee & Leach, Inc. makes a market in the following subject companies Fusion-IO and Facebook, Inc.
Sterne, Agee & Leach, Inc.'s research analysts receive compensation that is based upon various factors, including Sterne, Agee & Leach,
Inc.'s total revenues, a portion of which is generated by investment banking activities.
Sterne Agee & Leach, Inc. expects to receive or intends to seek compensation for investment banking services from the subject company
and/or companies in the next three months.

Price Target Risks & Related Risk Factors:
Investment risks associated with the achievement of the price target include, but are not limited to, a company's failure to achieve
Sterne, Agee & Leach, Inc., earnings and revenue estimates; unforeseen macroeconomic and/or industry events that adversely affect
demand for a company's products or services; product obsolescence; changes in investor sentiment regarding the specific company or
industry; intense and rapidly changing competitive pressures; the continuing development of industry standards; the company's ability
to recruit and retain competent personnel; and adverse market conditions. For a complete discussion of the risk factors that could
affect the market price of a company's shares, refer to the most recent Form 10-Q or 10-K that a company has filed with the Securities
Exchange Commission.
Company Specific Risks:
Competition Moving Pricing to a New, Lower Level: Larger competitors such as SanDisk and Micron may move to drop competitive
pricing sooner than expected and thus significantly impact Fusion-io's ability to move back to management's long-term GM target of
58-60%.
Customer Concentration: The company's exposure to Facebook (FB - $26.11 - Buy, Bhatia) and Apple (AAPL - $405.46, Not Rated)
remains the stock's number one risk in our view as a decline in spending levels here would significantly impact Fusion-io's revenue
and operating profit outlook.

Valuation Methodology:
Methodology for assigning ratings and target prices includes qualitative and quantitative factors including an assessment of industry
size, structure, business trends and overall attractiveness; management effectiveness; competition; visibility; financial condition; and
expected total return, among other factors. These factors are subject to change depending on overall economic conditions or industry
or company-specific occurrences. Sterne, Agee & Leach, Inc., analysts base valuations on a combination of forward looking earnings
multiples, price-to-revenue multiples, and enterprise-value-to-revenue ratios. Sterne, Agee & Leach, Inc., believes this accurately reflects
the strong absolute value of earnings, the strong earnings growth rate, the inherent profitability, and adjusted balance sheet factors.
Additional company-specific valuation methodology is available through Sterne, Agee & Leach, Inc.

Company Specific Valuation:
Employing a 2x revenue multiple for our FY2014 Strategic estimate and 5.6x our FY2014 Core estimate yields our $27 PT.
Definition of Investment Ratings:
BUY: We expect this stock to outperform the industry over the next 12 months.
NEUTRAL: We expect this stock to perform in line with the industry over the next 12 months.
UNDERPERFORM: We expect this stock to underperform the industry over the next 12 months.
RESTRICTED: Restricted list requirements preclude comment.


                                                                                                             Appendix Section, Page I
                                                                                                                          April 25, 2013

Ratings Distribution:
                                                                                                       IB Serv./ Past 12Mos.
Rating Category                       Count                     Percent                  Count                    Percent
Buy                                   217                       47.07%                   22                       10.14%
Neutral                               227                       49.24%                   14                       6.17%
Underperform                          17                        3.69%                    1                        5.88%

ADDITIONAL INFORMATION AVAILABLE UPON REQUEST: Contact Robert Hoehn at 1-212-338-4731.
Other Disclosures:
Opinions expressed are our present opinions only. This material is based upon information that we consider reliable, but we do not
represent that it is accurate or complete, and it should not be relied upon as such. Sterne, Agee & Leach, Inc., its affiliates, or one or
more of its officers, employees, or consultants may, at times, have long or short or options positions in the securities mentioned herein
and may act as principal or agent to buy or sell such securities.
Copyright © 2013 Sterne, Agee & Leach, Inc. All Rights Reserved.




To receive price charts or other disclosures on the companies mentioned in this report, please visit our website at https://
sterneagee.bluematrix.com/sellside/Disclosures.action or contact Sterne, Agee & Leach, Inc. toll-free at (800) 240-1438 or
(205) 949-3689.




                                                                                                         Appendix Section, Page II
                       Founded in 1901, Sterne Agee has been providing investors like you with high-quality investment opportunities for over a century. During the
                       early years, our founders prominently established themselves in the financial securities industry in the southeastern United States. Today, we
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                       Financial Services, Inc.—www.sterneagee.com

                                                              EQUITY CAPITAL MARKETS
                                          Ryan Medo            Managing Dir., Eq. Cap. Mkts.              (205) 949-3623


                         INSTITUTIONAL SALES                                                                  INSTITUTIONAL TRADING
William Jump          Director of Institutional Sales         (404) 814-3960           JT Cacciabaudo        Head of Trading                           (212) 763-8288
Jon Schenk            Assoc. Director of Inst. Sales          (212) 763-8221

                                                                    EQUITY RESEARCH
                                          Robert Hoehn          Director of Research                      (212) 338-4731
CONSUMER                                                                               INDUSTRIALS
 Footwear & Apparel                                                                      Aerospace & Defense
  Sam Poser                            Mng. Dir.              (212) 763-8226              Peter Arment                         Mng. Dir.               (646) 376-5336
  Ben Shamsian                         Analyst                (212) 338-4721              Josh W. Sullivan                     Sr. Analyst             (646) 376-5337

  Leisure & Entertainment
                                                                                          Auto, Auto Parts and Auto Retailers
  David Bain                           Mng. Dir.              (949) 721-6651
                                                                                          Michael P. Ward, CFA                 Mng. Dir.               (646) 376-5375
  Restaurants
  Lynne Collier                        Mng. Dir.              (214) 695-7305
                                                                                          Coal, Metals & Mining, Engineering & Construction
                                                                                          Michael S. Dudas, CFA                Mng. Dir.               (646) 376-5329
  Specialty Retail                                                                        Satyadeep Jain, CFA                  Analyst                 (646) 376-5357
  Ike Boruchow, Jr.                    Sr. VP, Sr. Analyst    (212) 338-4756              Patrick Uotila, CPA                  Analyst                 (646) 376-5358
  Tom Nikic, CFA                       Analyst                (212) 338-4784
                                                                                          Construction Materials & Diversified Industrials
ENERGY                                                                                    Todd Vencil, CFA                     Mng. Dir.              (804) 282-7385
  Exploration & Production                                                                Kevin Bennett, CFA                   VP, Analyst            (804) 282-4506
  Tim Rezvan, CFA                       Sr. Analyst           (212) 338-4736
  Truman Hobbs                          Analyst               (212) 338-4767              Homebuilding
                                                                                          Jay McCanless                        VP, Sr. Analyst        (615) 760-1475
  Oilfield Services & Equipment
  Stephen D. Gengaro                   Mng. Dir.              (646) 376-5331           TECHNOLOGY
  Grant Fox                            Analyst                (212) 338-4723             Data Networking and Storage
                                                                                          Alex Kurtz                           Mng. Dir                (415) 402-6015
FINANCIAL SERVICES                                                                        Amelia Harris                        Analyst                 (415) 402-6018
  Asset Management
  Jason Weyeneth, CFA                  SVP, Sr. Analyst       (212) 763-8293              Financial Technology
                                                                                          Greg Smith                           Mng. Dir                (818) 615-2029
  Banks & Thrifts                                                                         Jennifer Dugan                       Analyst                 (415) 402-6051
  Matthew Kelley                        Mng. Dir.             (207) 699-5800
  Matthew Breese                        VP, Sr. Analyst       (207) 699-5800              Interactive Entertainment / Internet
  Brett Rabatin, CFA                    Mng. Dir.             (615) 760-1466              Arvind Bhatia, CFA                   Mng. Dir.              (214) 702-4001
  Kenneth James                         VP, Sr. Analyst       (615) 760-1474              Brett Strauser                       VP, Analyst            (214) 702-4009
  Peyton Green                          Mng. Dir.             (877) 492-2663
                                                                                          LED Supply Chain
  Todd L. Hagerman                      Mng. Dir.             (212) 338-4744
  Robert Greene                         VP, Analyst           (212) 763-8296              Andrew Huang                         Mng. Dir.               (415) 362-6143
                                                                                          John Shen                            Analyst                 (415) 402-6052
  Life Insurance
  John M. Nadel                         Mng. Dir.             (212) 338-4717              Semiconductors
  Alex Levine                           Analyst               (212) 338-4748              Vijay Rakesh                         Mng. Dir.               (312) 525-8431

  Mortgage Finance & Specialty Finance                                                 TRANSPORTATION, SERVICES & EQUIPMENT
  Henry J. Coffey, Jr., CFA             Mng. Dir.             (615) 760-1472              Jeffrey A. Kauffman                  Mng. Dir.               (212) 338-4765
  Calvin Hotrum                         Analyst               (615) 760-1476              Sal Vitale                           VP, Sr. Analyst         (212) 338-4766
                                                                                          Ryan Mueller                         Analyst                 (212) 338-4732
  Property/Casualty Insurance
  Dan Farrell                           Mng. Dir.             (212) 338-4782
  Nitin Chhabra, FCAS                   Analyst               (212) 338-4779




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