Revenue of Dot Hill to Be Around $51 million in 2Q13

Dot Hill Systems Corp. has updated its guidance for the second quarter of 2013.

The company expects non-GAAP net revenue to be around $51 million, within the previous guidance range established on April 8, 2013 of $47 million to $53 million.

In addition, non-GAAP EPS is projected to be between $0.04 and $0.06 on a fully diluted basis, above the prior non-GAAP EPS range of $(0.01) to $0.02, provided on the same date.

"In the second quarter, we expect to benefit from strength in sales to our telco and media and entertainment customers," said Dana Kammersgard, CEO, Dot Hill. "As a result, we expect our vertical markets business to reflect significant growth both on a year-over-year and sequential basis. We will provide more color at our next earnings call scheduled for August 8, 2013."

"We are enjoying improved gross margin from our continued focus on vertical market expansion," stated Hanif Jamal, CFO, Dot Hill. "In the second quarter in particular, we expect additional gross margin benefit resulting from a spike in revenue from a vertical market customer."