Dot Hill Systems (HILL) Extends Sell-Off Through Monday

NEW YORK (TheStreet) -- After a steep post-earnings sell-off last week, Dot Hill Systems (HILL) is continuing to drop over Monday.

By late afternoon, shares had tumbled 17.2% to $3.75. Trading volume of 3.6 million was more than triple its three-month daily average.

On Friday, the company filed a Form 8-K with the SEC detailing the compensatory arrangements for president and CEO Dana Kammersgard and SVP and CFO Hanif Jamal.

The performance-based cash bonus will be determined based upon the completion of certain financial targets for non-GAAP revenue and operating profit with each metric weighted at 50%.

For fiscal 2014, Kammersgard and Jamal's bonuses will be equal to 100% and 65% of their base salaries, respectively.

The company's Compensation Committee also approved stock options for the executives: 260,000 for Kammersgard and 106,000 for Jamal.

Last week, the company gave up 15% despite beating analysts' estimates in its fourth quarter. The Longmont, Colo.-based business reported net income of 7 cents a share, a penny higher than Thomson Reuters' averaged estimates. Revenue climbed 29% year over year to $59.7 million.

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TheStreet Ratings team rates DOT HILL SYSTEMS CORP as a Buy with a ratings score of B-. The team has this to say about their recommendation:

"We rate DOT HILL SYSTEMS CORP (HILL) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins."

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