Thursday, November 8, 2007

Isilon Delays 10-Q On Revenue Recognition Probe

Seattle-based storage systems provide Isilon said Thursday afternoon that it has delayed filing its quarterly report, due to a investigation into revenue recognition timing at the firm. According to Isilon, its Audit Committee is conducting and independent review of certain sales to resellers and other customers to see if they have an impact on timing and treatment of revenue recognition. The firm said it expects to incur "considerable" professional fees and expense related to the review. The delay comes after a shuffle of the firm's executive staff, where both its CEO and CFO were replaced. The delays follows an earlier delay announced last week, which was previously attributed to management changes.