Dot Hill stock down on weak earnings

LONGMONT – The share price for data storage equipment manufacturer Dot Hill Systems Corp. (Nasdaq: HILL) on Thursday had dropped 17 percent by mid afternoon after second-quarter revenue dipped slightly from the same period a year ago.

Longmont-based Dot Hill saw revenue of $48.2 million for the period ending June 30, down from $50.7 million last year, in its earnings report unveiled Thursday. The net loss was $78,000, or less than 1 cent per share, after a profit of $2.1 million, or 4 cents per share last year.

Dot Hill’s stock traded at $3.45 Thursday afternoon, down from $4.17 the previous day.

“For the first half of 2014, results were within our expectations,” Dot Hill president and chief executive Dana Kammersgard said. “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.”

The company said it expects non-GAAP revenue of between $50 million and $58 million for the third quarter, with non-GAAP earnings per share of between 1 and 6 cents.

“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,” chief financial officer Hanif Jamal said in the earnings release. “The precise timing of our new customer product launches, which is very hard to tell, will impact revenues as well.”

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