Recent numerical simulations of self-gravitating protostellar disks have su
ggested that gravitational instabilities can lead to the production of subs
tellar companions. In these simulations, the disk is typically assumed to b
e locally isothermal; i.e., the initial, axisymmetric temperature in the di
sk remains everywhere unchanged. Such an idealized condition implies extrem
ely efficient cooling for outwardly moving parcels of gas. While we have se
en disk disruption in our own locally isothermal simulations of a small, ma
ssive protostellar disk, no long-lived companions formed as a result of the
instabilities. Instead, thermal and tidal effects and the complex interact
ions of the disk material prevented permanent condensations from forming, d
espite the vigorous growth of spiral instabilities. In order to compare our
results more directly with those of other authors, we here present three-d
imensional evolutions of an older, larger, but less massive protostellar di
sk. We show that potentially long-lived condensations form only for the ext
reme of local isothermality, and then only when severe restrictions are pla
ced on the natural tendency of the protostellar disk to expand in response
to gravitational instabilities. A more realistic adiabatic evolution leads
to vertical and radial expansion of the disk but no clump formation. We con
clude that isothermal disk calculations cannot demonstrate companion format
ion by disk fragmentation but only suggest it at best. It will be necessary
in future numerical work on this problem to treat the disk thermodynamics
more realistically.