Speaking on a conference call this week, Isilon CEO Steve Goldman explained that he is far from happy with the vendor's ongoing performance. "We're obviously very disappointed," he said, explaining that weaknesses in Europe and Kodak's decision not to spend more had a big impact on Isilon's third quarter results.
Kodak accounted for 17 percent of Isilon's second quarter revenues, but did not spend any cash with the vendor in the third quarter, according to the CEO. "In the second quarter Kodak spent $4 million on products from Isilon, which they are still absorbing," he said, adding that the photography giant remains "fully committed" to Isilon.
The exec also highlighted weakness in Isilon's business on the other side of the Atlantic. "[Isilon's European business] is still very early in terms of its operating history," he said, adding that this was compounded by a "typically" soft quarter. "Many countries there take off the whole month of August."
Isilon execs had previously discussed reaching profitability and breakeven sometime in 2008, although at least one analyst thinks that this is now unlikely. "Another miss pushes out operating profitability until calendar 2009 and adds to concerns about Isilon's ability to manage growth and handle stiffening competition," wrote Goldman Sachs analyst Laura Conigliaro, in a guidance note this week. "We see no reason to buy Isilon shares, even at currently depressed levels."
At mid-morning today, Isilon's shares were trading at $5.57, down 7 cents (1.24 percent) from last night's close at $5.66.
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