Monday, March 3, 2008

Isilon Restates Results

Seattle-based Isilon Systems said late Friday that the firm is restating its financial statements for its fiscal year ending December 31, 2006, and for the first and second quarters of fiscal 2007. Isilon said the restatement was based on the recommendation of its Audit Committee, which found that certain sales to resellers and others were made which had an impact on timing of revenue recognition. In a statement, Isilon said that the audit committee concluded that none of the company's current senior executive "engaged in improper practices or are otherwise responsible for the errors in revenue recognition." Isilon said that $7.0M of its 2006 through Q2 2007 revenue is expected to be adjusted, with $2.1M not expected to be recorded as revenue; $1.9M of the revenue will be reverse and is dependent on sell-through to end users customers and collection of revenue. The restatement follows a shakeup of the firm's CEO and CFO in October, delay of its Q3 earnings, and a delisting warning.