Feeds

Isilon narrows losses, but growing pains abound

Reduced expectations send stock tumbling

High performance access to file storage

Isilon Systems managed to narrow its losses for the second quarter with a revenue surge, but a lowered sales outlook late Thursday sent its stock price tumbling.

The storage systems firm reported a Q2 loss of $3.6m, a 65 per cent improvement from a $5.5m loss in the same quarter of the previous year.

Revenue increased 87 per cent to $25.1m, up from 13.4m. The company said it acquired 91 new customers during the quarter, representing a 117 per cent increase over its 42 new customers hooked year-over-year.

"As Isilon's business continues to grow and scale at an impressive rate," said CEO Steve Goldman, "the company's biggest challenge is to hire and bring new people up to speed as quickly as possible so we can capture the large market opportunity in front of us."

The rapid growth isn't all good news for Isilon. Struggling to build up a new sales force, company reduced its 2007 revenue guidance to a range of $98m to $105m, down from a previous forecast of between $115m and $125m. Analysts polled by Thompson Financial had expected the year's revenue to reach $118m.

Isilon expects revenue for the third quarter to be between $25m to $27.5m. Analysts had been hoping to see a figure more around the neighborhood of $31.4m

The reduced expectations sent Isilon's stock falling to $9.6 per share in trading today, a drop of over 35 per cent. The company had been hoping to reach profitability in the second half of this year, but CFO Stu Fuhlendorf pushed those high hopes back to 2008 in the company's conference call yesterday. ®

High performance access to file storage

More from The Register

next story
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.