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Thursday, December 14, 2006 - Page updated at 12:00 AM

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Seattle digital storage company Isilon aims to raise $100 million in IPO

Seattle Times technology reporter

Isilon Systems may raise up to $100.2 million tomorrow in its Nasdaq market debut, which would make it one of the largest initial public offerings (IPO) in the state this year.

The Seattle company is expected to price its shares today, after it filed a document with the Securities and Exchange Commission, in which it revised its share price upwards, saying it now expects to sell 8,350,000 shares at $11 to $12 a piece.

If the company, which makes storage devices for large digital files, is able to raise the $100.2 million maximum, it would come close to medical device company Northstar Neuroscience's $106.5 million public offering in May.

However, if priced at $11, it would raise $91.9 million. That's still more than the company expected when it filed its initial public offering intentions in September.

The company is expected to trade under the symbol "ISLN."

Isilon was founded in 2001, and builds storage systems with special software designed for companies that save large media files. The need for such storage devices has soared as companies continue to create archives of digital files. Isilon's customers include ABC, U.S. Geological Survey, Kodak EasyShare Gallery, Sports Illustrated and MySpace, among others.

The company said it expects net proceeds to be $86.8 million if it attains a midpoint price of $11.50. It plans to use the proceeds to pay off loans and fund capital expenditures of $11 million in 2007 as it expands marketing, sales, manufacturing and engineering.

As of October, the company had $17.9 million in cash and equivalents. In the nine months ended Oct. 1, the company had revenue of $41.6 million, a 236 percent increase compared with the same period a year earlier. In the nine months ended Oct. 1, it had a net loss of $15 million.

The company's private investors include Focus Ventures, Lehman Brothers Venture Partners, Sequoia Capital, Atlas Venture and Madrona Venture Group.

Tricia Duryee: 206-464-3283 or tduryee@seattletimes.com

Copyright © 2006 The Seattle Times Company

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