Isilon: Fiscal 2Q08 Financial Results

(in US$ millions)	2Q07	2Q08	6 mo. 07	6 mo. 08
Revenues	22.9	28.2	40.8	52.3
*Growth*		+23%		*+28%*
Net income (loss)	(5.0)	(5.8)	(11.9)	(15.9)

Isilon Systems announced its financial results for the second quarter ended June 30, 2008. Revenue for the second quarter was $28.2 million, a sequential increase of 17 percent compared with $24.1 million in the first quarter of 2008. Revenue increased 23 percent compared with $22.9 million in the second quarter of 2007.

"In the second quarter, Isilon delivered solid results representing increased traction in our business and progress toward profitability," said Sujal Patel, President and Chief Executive Officer, Isilon Systems. "We continue to deepen penetration into mission critical enterprise applications, demonstrating a broadening recognition of Isilon’s strong value proposition."

Financial results for the second quarter of 2008 included the following:

Gross margin for the second quarter of 2008 was 56.9 percent, compared with 53.5 percent in the first quarter of 2008. Gross margin in the second quarter last year was 50.6 percent. On a non-GAAP basis, gross margin for the second quarter was 57.0 percent, compared with 53.7 percent in the first quarter of 2008. Non-GAAP gross margin in the second quarter last year was 50.8 percent.
Loss from operations for the second quarter of 2008 was $6.4 million, compared with $10.8 million in the first quarter of 2008. Loss from operations in the second quarter last year was $6.2 million. On a non-GAAP basis, loss from operations for the second quarter of 2008 was $4.9 million, compared with $9.5 million in the first quarter of 2008. Non-GAAP loss from operations in the second quarter last year was $5.1 million.
Net loss for the second quarter of 2008 was $5.8 million, or $0.09 per share, compared with net loss of $10.1 million, or $0.16 per share, in the first quarter of 2008. Net loss in the second quarter last year was $5.0 million, or $0.08 per share. Non-GAAP net loss for the second quarter was $4.3 million, or $0.07 per share, compared with non-GAAP net loss of $8.8 million, or $0.14 per share, in the first quarter of 2008. Non-GAAP net loss in the second quarter last year was $4.0 million, or $0.07 per share.
As of June 30, 2008, cash, cash equivalents and marketable securities were $75.1 million.