Possible cause of hack?

One of my sites (not hosted on my company's server for safety precautions) was hacked today and we found this file in the root directory. It looks like it could have caused an INTENSE load on the server which might have left something open for a hacker? Here's the file:

PHP Code:
#!/usr/local/bin/php
<?php

for($i = 0; $i < 365 * 365 * 365 * 365 * 365; $i++)
{
    if(file_exists(".lastlogin"))
    {
        unlink(".lastlogin");
    }
    else
    {
    }
}
It was called "del". Maybe, eh?

 

 

 

 

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