News

posted on 09 May 2008 10:19

Dot Hill's first quarter 2008 results show a net loss marginally up on the year-ago quarter and net revenues marginally down. It looks bad but is actually good.

Beating the forecast $48-52 million, Dot Hill earned $52.8 million in its Q1fy08 quarter, down a little on Q1fy07's $53.4 million. Net loss for the quarter was $6.1 million ($0.13/share), essentially flat compared to Q1fy07's $6.0 million net loss (also $0.13/share). The expected net loss was in the range $0.15-0.19/share so the company did much better there.

The net loss figure includes a $3.8 million legal settlement and $2.3 million for a warrant to HP.

Dana Kammersgard, Dot Hill president and CEO, said: "Since last quarter, Dot Hill has made some significant progress on several fronts. We have executed well on our initial shipments to Hewlett-Packard and been successful in diversifying our revenue stream with now nearly 40 customers who are purchasing our R/Evolution products."

"There is intense focus on cost of goods sold reductions and tight operating expense control. In all, we continue to believe the combination of top-line growth and margin appreciation from our cost-reduction efforts can yield a return to non-GAAP profitability later this year."

The company is targeting second quarter 2008 net revenue in the range of $66 to $70 million and a net loss per fully diluted share in the range of $0.07 to $0.10 on a non-GAAP basis, which excludes share-based compensation expense, foreign currency gains or losses, severance and restructuring expenses.

Dot Hill has recently gained a design win with HP.

^{[Paul Roberts, news editor.]}