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Needham & Company Maintains a 'Hold' on Dot Hill (HILL); Preliminary 4Q Slightly Below Street on HDDs;

February 7, 2012 7:45 AM EST
HILL Hot Sheet
Rating Summary:
    2 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Needham & Company maintains a 'Hold' on Dot Hill (NASDAQ: HILL).

Analyst, Glenn Hanus, said, "HILL updated its 4Q outlook slightly below Street due to HDD availability although demand was in-line. More importantly, HILL announced a realignment of its R&D efforts to focus on embedded features for a new mid-range line to be available by 3Q. Consolidation among storage providers (ie. Engenio/NTAP) appears to be providing opportunities for HILL to achieve improved rev./EPS and ROI vs. investing further in Cloverleaf sw. HILL believes it can still achieve its Nov’10 stated 2-3 year goals in ’13 based on this restructuring, new products and customer opportunities."

Needham lowers FY11 EPS estimate from (0.02) to (0.03) and FY12 from $0.08 to $0.05.

For an analyst ratings summary and ratings history on Dot Hill click here. For more ratings news on Dot Hill click here.

Shares of Dot Hill closed at $1.61 yesterday, with a 52 week range of $1.19-$3.86.


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