LONGMONT, Colo., July 11, 2013 (GLOBE NEWSWIRE) -- Dot Hill Systems Corp. (Nasdaq:HILL), a leading provider of SAN storage solutions, has updated its guidance for the second quarter of 2013. The Company expects non-GAAP net revenue to be around $51 million, within the previous guidance range established on April 8, 2013 of $47 million to $53 million. In addition, non-GAAP EPS is projected to be between $0.04 and $0.06 on a fully diluted basis, above the prior non-GAAP EPS range of $(0.01) to $0.02, provided on the same date.
"In the second quarter, we expect to benefit from strength in sales to our telco and media and entertainment customers," said Dana Kammersgard, Chief Executive Officer, Dot Hill Systems. "As a result, we expect our vertical markets business to reflect significant growth both on a year-over-year and sequential basis. We will provide more color at our next earnings call scheduled for August 8, 2013."
"We are enjoying improved gross margin from our continued focus on vertical market expansion," stated Hanif Jamal, Chief Financial Officer, Dot Hill Systems. "In the second quarter in particular, we expect additional gross margin benefit resulting from a spike in revenue from a vertical market customer."The Company has not completed its second quarter 2013 financial review process and stated that once completed there may be a certain adjustments that could impact its current estimated results and conclusions of the Company's second quarter 2013 GAAP and Non-GAAP financial results. The Company's second quarter 2013 financial results conference call is scheduled to take place on Thursday, August 8, 2013 at 11:00 a.m. ET. Please join us for a live audio webcast at www.dothill.com in the Investor Relations section. If you prefer to join via telephone, please dial 877-303-3196 (U.S.) or 408-427-3864 (International) at least five minutes prior to the start of the call. A replay of the webcast is scheduled to be available for one week on the Dot Hill web site following the conference call. For a telephone replay, dial 855-859-2056 (U.S.) or 404-537-3406 (International) and enter conference ID# 93866356. About Non-GAAP Financial Measures The Company's non-GAAP financial measures exclude the impact of stock-based compensation expense, legal settlements and associated expenses, intangible asset amortization, restructuring and severance charges, charges or credits for contingent consideration adjustments, charges for impairment of goodwill and other long-lived assets, specific and significant warranty claims arising from a supplier's defective products, the impact of our discontinued AssuredUVS software business and the effects of foreign currency gains or losses. The non-GAAP financial measures include the recognition of revenues and directly related costs associated with long term AssuredVRA software contracts, which were deferred and amortized in the Company's GAAP financial statements. The Company used these non-GAAP measures when evaluating its financial results as well as for internal resource management, planning and forecasting purposes. These non-GAAP measures should not be viewed in isolation from or as a substitute for the Company's financial results in accordance with GAAP.