Dot Hill Systems Updates Guidance for Second Quarter 2013 Financial Results and Announces Second Quarter 2013 Conference Call

Dot Hill Systems Updates Guidance for Second Quarter 2013 Financial Results
and Announces Second Quarter 2013 Conference Call Information

LONGMONT, Colo., July 11, 2013 (GLOBE NEWSWIRE) -- Dot Hill Systems Corp.
(Nasdaq:HILL), a leading provider of SAN storage solutions, 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, Chief
Executive Officer, Dot Hill Systems. "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, Chief Financial Officer, Dot Hill
Systems. "In the second quarter in particular, we expect additional gross
margin benefit resulting from a spike in revenue from a vertical market
customer."

The Company has not completed its second quarter 2013 financial review process
and stated that once completed there may be a certain adjustments that could
impact its current estimated results and conclusions of the Company's second
quarter 2013 GAAP and Non-GAAP financial results.

The Company's second quarter 2013 financial results conference call is
scheduled to take place on Thursday, August 8, 2013 at 11:00 a.m. ET. Please
join us for a live audio webcast at www.dothill.com in the Investor Relations
section. If you prefer to join via telephone, please dial 877-303-3196 (U.S.)
or 408-427-3864 (International) at least five minutes prior to the start of
the call. A replay of the webcast is scheduled to be available for one week on
the Dot Hill web site following the conference call. For a telephone replay,
dial 855-859-2056 (U.S.) or 404-537-3406 (International) and enter conference
ID# 93866356.

About Non-GAAP Financial Measures

The Company's non-GAAP financial measures exclude the impact of stock-based
compensation expense, legal settlements and associated expenses, intangible
asset amortization, restructuring and severance charges, charges or credits
for contingent consideration adjustments, charges for impairment of goodwill
and other long-lived assets, specific and significant warranty claims arising
from a supplier's defective products, the impact of our discontinued
AssuredUVS software business and the effects of foreign currency gains or
losses.The non-GAAP financial measures include the recognition of revenues
and directly related costs associated with long term AssuredVRA software
contracts, which were deferred and amortized in the Company's GAAP financial
statements. The Company used these non-GAAP measures when evaluating its
financial results as well as for internal resource management, planning and
forecasting purposes. These non-GAAP measures should not be viewed in
isolation from or as a substitute for the Company's financial results in
accordance with GAAP.

About Dot Hill

Delivering innovative technology and global support, Dot Hill empowers the OEM
and channels community to bring unique storage solutions to market, quickly,
easily and cost-effectively. Offering high performance and industry-leading
uptime, Dot Hill's RAID technology is the foundation for best-in-class storage
solutions offering enterprise-class security, availability and data
protection. The Company's products are in use today by the world's leading
service and equipment providers, common carriers and advanced technology and
telecommunications companies, as well as government agencies and small and
medium enterprise customers. Dot Hill solutions are certified to meet rigorous
industry standards and military specifications, as well as RoHS and WEEE
international environmental standards. Headquartered in Longmont, Colorado,
Dot Hill has offices and/or representatives in China, Germany, Japan, United
Kingdom, Singapore and the United States.For more information, visit us at
http://www.dothill.com.

Statements contained in this press release regarding matters that are not
historical facts are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act. Because such statements are subject
to risks and uncertainties, actual results may differ materially from those
expressed or implied by such forward-looking statements. Such statements
include statements regarding Dot Hill's projected financial results for the
second quarter of 2013, and increases in our vertical markets business and
technology market share. The risks that contribute to the uncertain nature of
the forward-looking statements include, among other things: the risk that
actual financial results for the second quarter 2013 may be different from the
financial guidance provided in this press release; the risks associated with
macroeconomic factors that are outside of Dot Hill's control; the fact that no
Dot Hill customer agreements provide for mandatory minimum purchase
requirements; the risk that one or more of Dot Hill's OEM or other customers
may cancel or reduce orders, not order as forecasted or terminate their
agreements with Dot Hill; the risk that Dot Hill's new products may not prove
to be popular; the risk that one or more of Dot Hill's suppliers or
subcontractors may fail to perform or may terminate their agreements with Dot
Hill; the risk that vertical markets' sales may not ramp as expected;
unforeseen product quality, technological, intellectual property, personnel or
engineering issues and any costs that may result from such issues; and the
additional risks set forth in the Form 10-Q most recently filed with the
Securities and Exchange Commission by Dot Hill. All forward-looking statements
contained in this press release speak only as of the date on which they were
made. Dot Hill undertakes no obligation to update such statements to reflect
events that occur or circumstances that exist after the date on which they
were made.

HILL-F

CONTACT: Hanif Jamal
         Chief Financial Officer
         Tel: 303-845-3377
         Email: investors@dothill.com
        
         Jodi Bochert
         Investor Relations
         Tel: 303-845-3469
         Email: investors@dothill.com
        
         Becky Herrick & Kirsten Chapman
         LHA Investor Relations
         Tel: 415-433-3777
         Email: dothill@lhai.com

Dot Hill Systems Corporation Logo
 
Press spacebar to pause and continue. Press esc to stop.