Isilon: Fiscal 2Q10 Financial Results

(in US$ millions)	2Q09	2Q10	6 mo. 09	6 mo. 10
Revenues	29.0	45.1	55.9	84.3
*Growth*		56%		*51%*
Net income (loss)	(3.7)	2.0	(14.1)	3.1

Isilon Systems, Inc. announced its financial results for the quarter ended June 30, 2010.

Revenue for the quarter was $45.1 million, up 15% sequentially compared to $39.3 million in the first quarter of 2010 and up 56% from $29.0 million in the second quarter of 2009.

"Isilon’s second quarter results reflect our strong business execution and our value proposition to customers," said Sujal Patel, president and chief executive officer, Isilon Systems. "Accelerating revenue, strong gross margins and a record number of new customers provide a solid foundation for continued growth," said Patel. "As enterprises continue their search for the simplest and most cost-effective means of meeting their long-term data management needs, our results further validate that Isilon’s sixth-generation scale-out storage platform offers distinct and clearly understood competitive advantages."

Financial results for the second quarter of 2010
included the following:

Gross margin for the second quarter of 2010 was 62.0%, compared with 62.0% in the first quarter of 2010 and 57.0% in the second quarter of 2009.
Net income for the second quarter of 2010 was $2.0 million, or $0.03 per diluted share, compared with net income of $1.1 million, or $0.02 per diluted share in the first quarter of 2010. Net loss in the second quarter of 2009 was $3.7 million, or $0.06 per diluted share. Non-GAAP net income for the second quarter of 2010 was $4.1 million, or $0.06 per diluted share, compared with non-GAAP net income of $2.9 million, or $0.04 per diluted share in the first quarter of 2010. Non-GAAP net loss in the second quarter of 2009 was $2.0 million, or $0.03 per diluted share.
Cash flows generated from operations in the second quarter of 2010 were $10.0 million compared with $9.9 million in the first quarter of 2010 and negative $0.7 million in the second quarter of 2009.
As of June 30, 2010, cash, cash equivalents and marketable securities were $100 million, compared with $89 million as of March 31, 2010.

Comments

Abstracts of the earnings call transcript:

Bill Richter, CFO:
"North America was $33.2 million. Asia-Pacific was $7.4 million and EMEA was $4.5 million. Our EMEA business was the only geography sequentially down in Q2.
"In Q2, sales of our add-on software applications contributed 11% of our total revenue mix or $5.1 million.
"In Q2, we acquired a record 97 new customers.
"We have acquired over 170 new Isilon customers since January 1.
"Our previous outlook provided in April was to generate revenue growth in the mid-30% range for 2010. From a top line perspective we are now raising our outlook for the full year revenue growth to be in the low to mid 40% range."