Dot Hill boosts 1Q outlook, shares rise

Dot Hill Systems boosts 1st-qtr outlook, issues strong 2nd-qtr guidance, shares hit new high

Associated Press

LONGMONT, Colo. (AP) -- Dot Hill Systems Corp. shares rose Monday after the data storage company said its first-quarter loss will be smaller than previously expected and issued a better-than-expected outlook for the current period.

The Longmont, Colo.-based company said it now expects to post an adjusted first-quarter loss of between zero cents and 2 cents per share. It previously projected a loss of 2 cents to 4 cents per share.

Analysts, on average, expect a loss of 4 cents per share, according to FactSet.

Dot Hill also narrowed its adjusted revenue prediction for the quarter to a range of $44 million to $45 million from its previous range of $43 million to $46 million. The company attributed the improved outlook to profitability improvements stemming from a more favorable sales mix.

For the second-quarter, Dot Hill said it expects its adjusted results to come in between a loss of 1 cent per share and a profit of 2 cents per share, while analysts expect a loss of 3 cents per share.

Adjusted revenue is expected to total between $47 million and $53 million.

For the full year ending Dec. 31, the company projected an adjusted profit of 2 cents to 10 cents per share on $205 million to $227 million in adjusted revenue. Analysts expect a loss of 4 cents per share.

Based on 2013's expected results, the company projected an adjusted 2014 profit of 11 cents to 40 cents per share on adjusted revenue of $231 million to $301 million.

Dot Hill shares rose 16 cents, or 12 percent, to $1.50 in heavy morning trading, after peaking at $1.58 shortly after the markets opened, a penny shy of their 52-week high.

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