Dot Hill Reports Second Quarter 2012 Results

LONGMONT, Colo., Aug. 8, 2012 (GLOBE NEWSWIRE) -- Dot Hill Systems Corp. (Nasdaq:HILL), a leading provider of SAN storage solutions, today announced financial results for the second quarter 2012, the period ended June 30, 2012.

Operational Highlights:
  • The Company announced that it had signed contracts with a number of new OEM's including Harris Broadcast Communications for its forthcoming midrange products.
  • The Company will be hosting a midrange product launch on August 22, 2012.
  • The Company's non-HP OEM business grew 67% in the first half of 2012 compared to the first half of 2011.
  • The Company's branded Channels business grew almost 60% in the first half of 2012 compared to the first half of 2011.

"At the beginning of 2012, when I outlined our game plan, I stated that we were winding down the UVS business in order to focus our investments on core storage opportunities that could result in strong revenue growth in 2013," stated Dana Kammersgard, president and chief executive officer, Dot Hill Systems. "The early indicators of results from these investments give me greater confidence today that we will indeed start to see tangible returns on our investments beginning in 2013 and that our growth will likely come from our forthcoming midrange products, from new OEM prospects, from competitive consolidation and from continued channel sales traction. Despite the weak economic outlook for the rest of 2012 and potentially into 2013, we continue to expect that these same company specific catalysts will enable us to grow faster than the data storage industry as a whole."

Financial Highlights:
  • Second quarter 2012 non-GAAP revenue of $47.7 million compared to $54.6 million in the first quarter of 2012, $52.5 million in the second quarter of 2011 and a guidance range of $48 million to $52 million established in May 2012. The Company stated that they had expected a sequential decline in revenue in the second quarter of 2012 due to a first quarter 2012 spike in demand from an OEM partner in the 4G LTE space from whom they recognized revenue of $10.4 million in the first quarter of 2012 compared to revenue of $3.3 million in the second quarter of 2012.
  • Second quarter 2012 non-GAAP gross margin of 27.4% compared to 29.3% in the prior quarter and compared to 26.1% in the second quarter of 2011.
  • Second quarter 2012 non-GAAP EPS of $(0.03) compared to $0.03 in the prior quarter, $0.03 in the second quarter of 2011 and a guidance range of $(0.03) to $0.01 established in May 2012.
  • First half 2012 non-GAAP revenue of $102.3 million compared to $101.0 million for the first half of 2011.
  • First half 2012 non-GAAP gross margin of 28.4% compared to 25.8% for the first half of 2011.
  • First half 2012 non-GAAP EPS of $0.00 compared to $0.05 for the first half of 2011.
  • Cash and cash equivalents of $40.5 million as of June 30, 2012 compared to $41.4 million as of March 31, 2012.

Second Quarter 2012 GAAP Financial Detail:

The Company recognized GAAP net revenue of $47.8 million for the second quarter of 2012, compared to $53.2 million for the second quarter of 2011 and $54.7 million for the first quarter of 2012.

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