Dot Hill: Preliminary Fiscal 4Q13 Financial Results

Dot Hill Systems Corp. has updated its guidance for the fourth quarter and full year of 2013.

Management now expects non-GAAP net revenue to be in the range of $59.0 million to $59.5 million and non-GAAP fully diluted EPS to be between $0.05 and $0.07, above the prior non-GAAP revenue guidance of $53 million to $58 million and non-GAAP EPS range of $0.03 to $0.06, provided on November 8, 2013.

The company now anticipates full-year 2013 non-GAAP revenue to be in the range of $208 million to $208.5 million, which exceeds prior revenue guidance of $202 million to $207 million given on November 8, 2013. Management expects non-GAAP fully diluted EPS in the range of $0.16 to $0.18 compared to prior guidance of $0.14 to $0.17.

“With excellent execution of our growth strategy, 2013 was a milestone year for Dot Hill in which we expect to report a full year GAAP and non-GAAP profit with strong revenue growth,” stated Dana Kammersgard, CEO. “Our vertical markets business continued its strong traction, and we expect 42% year-over-year growth in 2013 compared to 39% in 2012 and 34% in 2011. More importantly, during 2013, we announced many new flagship vertical markets’ customers that we expect will be the foundation for continued growth into 2014 in big data, oil and gas and in media and entertainment.”

The company has not completed its 2013 financial review process and stated that there may be a number of items that could impact its current estimated fourth quarter and full year 2013 financial results. The results and conclusions of these assessments could impact the company’s fourth quarter and full year 2013 GAAP and Non-GAAP financial results.

“We expect to report strong fourth quarter 2013 financial results with revenue growth of approximately 28% and 12% on a year-over-year and sequential basis, respectively,” said Hanif Jamal, CFO, Dot Hill. “Based on these results, 2013 is shaping up to be transformational for us, with year-over-year revenue growth that is projected to well exceed that of the storage industry, strong gross margin improvement, relatively flat operating expenses and a significant improvement in operating profitability. We will provide you with our first quarter 2014 outlook on our fourth quarter 2013 earnings call.”