Dot Hill Systems Corp. (NASDAQ:HILL) Agressive With Its Guidance
Dot Hill Systems Corp. (NASDAQ:HILL) reported its fourth quarter and full year 2014 results on 6th March, before markets opened. The data storage devices maker reported that it grew its revenue in the fourth quarter by more than 29 percent in comparison to 4Q12. It also gave out an aggressive guidance for the full year 2014 operations which predict revenue in the current fiscal year would breach two digit growth rates.
Solid Growth Achieved In 4Q
The $266 million market capped firm reported that on a non GAAP measure basis, its revenue for the full year 2013 operations went up by 42 percent as against its 2012 compare and reported full year profitability for the first time since 2005 when measured on GAAP accounting basis.
The strong revenue surge was achieved on the back of long term agreements being established with bigger application and device vendors. These solution providers have committed to port the firm’s data management solutions into their solutions. These big ticket solution providers like “Acer Europe SA, CGG, Quantum Corporation, Supermicro(R) and Teradata Corporation” have been paying out recurring royalty to Dot Hill Systems Corp. (NASDAQ:HILL). The firm also reported being awarded five new patents to its name in the reporting quarter, taking its total patent portfolio to a impressive 92.
Aggressive 2014 Forecast
In fact its Chief Financial Officer, Senior Vice President, Treasurer, Corporate Secretary Hanif I. Jamal has been quoted to have painted a bright 2014 by saying that, “We are projecting continued strong vertical markets traction in 2014 resulting in almost 14% aggregate revenue growth at the midpoint of our guidance range. As we look out over our own internal planning horizon, we think that our compounded average annual growth rate in non-GAAP revenue should be 14-18% overall from a 2013 baseline, with the vertical markets business growing 40-50%.”
In spite of the solid performance operationally and financially, the stock got hammered downwards at the stock market on 7th March, when its market valuation plummeted by 11.5 percent.