The vendor, which went public without ever having a profitable quarter, is looking to turn this situation around in the coming months. "Isilon expects to reach profitability on a non-GAAP basis in the second half of 2007," said Isilon CFO Stu Fuhlendorf during last night's call.
This may be easier said than done. Despite solid revenues, Isilon saw a slowdown in spending during the quarter, echoing the experience of Sun and LSI execs during their own quarterly conference calls last night. (See Sun Slips on Storage and LSI Promises Better.) "We saw some caution in IT capital spending in Q1, which the storage industry was not immune to," explained Fuhlendorf, adding that he expects this situation to pick up in the second quarter.
Isilon CEO Steve Goodman was cagey on the vendor's roadmap last night, but the exec promised new clustering software by the end of 2007.
The vendor currently offers four different software "applications," which include products for data migration, replication, and snapshots. (See Isilon Launches MigrationIQ and Isilon Releases SyncIQ 2.0.) "We're making great progress toward having six applications by the end of the year," said the exec, although he did not reveal which areas these will address.
The subject of NetApp cropped up during the call. Isilon provoked the ire of NetApp CEO Dan Warmenhoven during that firm's recent analyst day. (See NetApp Stokes Competitive Fires and NetApp's Kidd Talks Turkey.) Isilon had reportedly been trash-talking EMC and NetApp, accusing them of failing to make inroads into clustered NAS, prompting a vengeful outburst from the NetApp CEO. (See Isilon's Counting on Clusters and Isilon Reports Earnings.)
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