Isilon: Fiscal 4Q09 Financial Results

in US$ millions)	4Q08	4Q09	FY08	FY09
Revenues	31.8	37.5	114.4	123.9
*Growth*		18%		8%
Net income (loss)	(4.3)	0.1	(25.1)	(18.9)

Isilon Systems, Inc. announced its financial results for the fourth quarter and year ended December 31, 2009.

Revenue for the fourth quarter was $37.5 million, up 23% sequentially compared to $30.5 million in the third quarter of 2009 and up 18% from $31.8 million in the fourth quarter of 2008. Revenue for the year ended December 31, 2009 was $123.9 million, up 8% from $114.4 million in 2008.

"Isilon’s fourth quarter set records for revenue, gross margin, income and new customers. These results, coupled with increasing operating leverage, led to Isilon’s first profitable quarter," said Sujal Patel, President and Chief Executive Officer, Isilon Systems. "While we’re certainly gratified that we’ve achieved this important milestone, we’re even more pleased with the validation of our business model that these results provide. We will continue to sharpen our focus on driving long-term growth by broadening the markets we’re able to successfully address and by creating innovative products and solutions that align directly with the rapidly evolving needs of enterprise storage buyers."

Financial results for the fourth quarter
and full year of 2009 included the following:

Gross margin for the fourth quarter of 2009 was 57.6%, compared with 56.9% in the third quarter of 2009 and 57.1% in the fourth quarter of 2008.
Net income for the fourth quarter of 2009 was $0.1 million, or $0.00 per share, compared with net loss of $4.9 million, or $0.08 per share in the third quarter of 2009. Net loss in the fourth quarter of 2008 was $4.3 million, or $0.07 per share. Non-GAAP net income for the fourth quarter of 2009 was $1.6 million, or $0.02 per share, compared with non-GAAP net loss of $1.4 million, or $0.02 per share in the third quarter of 2009. Non-GAAP net loss in the fourth quarter of 2008 was $2.8 million, or $0.04 per share.
Cash flows generated from operations in the fourth quarter of 2009 were a positive $2.5 million compared with $0.9 million in the third quarter of 2009 and $2.7 million in the fourth quarter of 2008. Cash flows from operations in the fourth quarter of 2009 were reduced by a $2.0 million payment as part of the previously announced proposed settlement of the securities class action litigation.