LONGMONT, Colo., May 9, 2013 (GLOBE NEWSWIRE) -- Dot Hill Systems Corp. (Nasdaq:HILL), a leading provider of SAN storage solutions, reported financial results for the first quarter 2013, ended March 31, 2013.
Non-GAAP First Quarter 2013 Financial and Operational Highlights:
- Net revenue from Vertical Markets grew 20% compared to fourth quarter 2012;
- Non-GAAP gross margins were 32.1%, as compared to 28.3% for the fourth quarter 2012, and the highest gross margin in over five years;
- Operating expenses were relatively flat as compared to first quarter 2012 and declined relative to fourth quarter 2012;
- Company returns to breakeven.
"The results of increased R&D spending in 2012 are now becoming more visible," stated Dana Kammersgard, president and chief executive officer, Dot Hill Systems. "Our focus on Vertical Markets and especially in Media and Entertainment and Telecommunications is benefiting from explosive data growth as film studios keep producing 3-D movies and smartphone users keep generating and sharing data of all sorts. Furthermore, our new product efforts are bearing fruit as almost all of our recent new customer wins are based on our midrange 4000 or 5000 series products. Additionally, multiple existing and new OEM partners are on schedule to launch our next generation entry-level series 3000 arrays."First Quarter 2013 GAAP Financial Detail (including discontinued operations): The Company recognized GAAP net revenue of $44.5 million for the first quarter of 2013, as compared to $54.7 million for the first quarter of 2012 and $44.1 million for the fourth quarter of 2012. The first quarter of 2012 benefitted from a spike in demand from one of the Company's telecommunications customers. GAAP gross margins for the first quarter of 2013 were 32.2%, as compared to 27.7% for the first quarter of 2012 and 17.8% for the fourth quarter of 2012. GAAP operating expenses for the first quarter of 2013 were $15.3 million, as compared to $17.1 million for the first quarter of 2012 and $12.6 million in the fourth quarter of 2012. GAAP net loss for the first quarter of 2013 was $1.0 million, or ($0.02) per share, as compared to a net loss of $1.9 million, or ($0.03) per share, for the first quarter of 2012, and a net loss of $5.0 million, or ($0.09) per share, for the fourth quarter of 2012.