Dot Hill Systems Corp. (HILL) Reports In-Line Q2 EPS; Issues Weaker Outlook

Dot Hill Systems Corp. (NASDAQ: HILL) reported Q2 EPS of $0.02, in-line with the analyst estimate of $0.02. Revenue for the quarter came in at $48.2 million versus the consensus estimate of $51.5 million.

"For the first half of 2014, results were within our expectations," stated Dana Kammersgard, president and CEO, Dot Hill Systems Corp. "As previously noted, we expect that 2014 will be more back-end loaded than previous years. We remain very confident in the ramp of this revenue and the sustainability of this growth into 2015 and beyond, as we project at least three and potentially four major customer product launches scheduled between now and the end of the year."

Dot Hill Systems Corp. sees Q3 2014 EPS of $0.01-$0.06, versus the consensus of $0.06. Dot Hill Systems Corp. sees Q3 2014 revenue of $50-58 million, versus the consensus of $59.5 million.

"With respect to 2014 overall, we currently believe that our results will fall around the low end of our guidance range, based on lower than expected Server OEM revenue in the first half. The precise timing of our new customer product launches, which is very hard to call, will impact revenues as well," stated Hanif Jamal, chief financial officer, Dot Hill Systems Corp. "We remain resolute in our conviction that we are getting very close to a transformative revenue ramp, and with the operating leverage in our business model, an even stronger earnings inflection point. With respect to our medium-term planning horizon relative to 2013 as provided during our March earnings call, we remain very confident in 14-18% total non-GAAP revenue growth with 40-50% growth in Vertical Markets and plus or minus 5% in Server OEMs revenue growth with an 8-12% operating margin target."

For earnings history and earnings-related data on Dot Hill Systems Corp. (HILL) click here.

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