Isilon: Fiscal 4Q08 Financial Results

Isilon Systems announced its financial results for the fourth quarter and year ended December 31, 2008. Revenue for the fourth quarter was $31.8 million, up 5.0% sequentially compared with $30.3 million in the third quarter of 2008 and up 19.5% from $26.6 million in the fourth quarter of 2007. Revenue for the year ended December 31, 2008 was $114.4 million up 28.6% from $89.0 million in 2007.

"Isilon’s solid fourth quarter revenue growth and continued progress toward profitability were the results of increasing operating leverage and a continued focus on markets where our scale-out NAS solutions offer customers clear and compelling economic and business value," said Sujal Patel, President and Chief Executive Officer, Isilon Systems. "By providing a ‘pay-as-you-grow’ solution that aligns capital expenditures directly with continued storage growth, Isilon’s economic and business value resonates well in the current challenging macro-economic environment."

During the fourth quarter, Isilon appointed new leaders of its Worldwide Channel, Marketing & Business Development and Global Support organizations. "These seasoned business leaders will drive continued improvements in execution while creating significant business leverage through enhanced demand generation, channel performance and customer satisfaction," said Patel.

Financial results for the fourth quarter
and full year of 2008 included the following:

• Gross margin for the fourth quarter of 2008 was 57.1%, compared with 57.2% in the third quarter of 2008. Gross margin in the fourth quarter last year was 52.7%. For the full year 2008, gross margin was 56.3% compared with 52.0% in 2007.
• Loss from operations for the fourth quarter of 2008 was $4.3 million, compared with $5.2 million in the third quarter of 2008. Loss from operations in the fourth quarter last year was $8.8 million. On a non-GAAP basis, loss from operations for the fourth quarter of 2008 was $2.8 million, compared with $3.6 million in the third quarter of 2008. Non-GAAP loss from operations in the fourth quarter last year was $7.5 million.
• Net loss for the fourth quarter of 2008 was $4.3 million, or $0.07 per share, compared with net loss of $4.8 million, or $0.08 per share, in the third quarter of 2008. Net loss in the fourth quarter last year was $7.8 million, or $0.13 per share. Non-GAAP net loss for the fourth quarter was $2.8 million, or $0.04 per share, compared with non-GAAP net loss of $3.3 million, or $0.05 per share, in the third quarter of 2008. Non-GAAP net loss in the fourth quarter last year was $6.6 million, or $0.11 per share. For the full year 2008, non-GAAP net loss was $19.2 million, or $0.30 per share, compared with non-GAAP net loss of $23.0 million, or $0.37 per share last year.
• As of December 31, 2008, cash, cash equivalents and marketable securities were $77.8 million, compared with $76.7 million as of September 30, 2008.