Feeds

Dot Hill in a dot hole: Disk array builder struggles to stem losses

What next for the mid-range drive vault biz?

3 Big data security analytics techniques

Disk-array constructor Dot Hill's newly released financial figures for last year reveal a falling revenue trend and a struggle to reel in losses.

Dot Hill quarterly revenues and profit/loss

Dot Hill's quarterly revenues and losses (Click on chart for a larger version)

The company, which has offices in Basingstoke, UK, supplied hardware to Sun and Oracle, then NetApp and HP. Such vendor contracts rise and fall; it also sells through a reseller channel. The main product is its AssuredSAN array line which it punts at mid-range customers looking for performance, enterprise features and value - it's a rather traditional mix.

We wrote a year ago that supplying drive enclosures to mainstream computer makers is a mug's game. There are no startups here; they're all in the solid-state storage and cloud storage areas. But Dot Hill is wedded to vendors and has nowhere else to go.

And that's still pretty much the state of play today, a year later.

Apart from a near derisory $0.3m profit two years ago the Colorado-headquartered company has suffered a string of quarterly losses. The annual picture is no different; four years of losses and declining revenues since 2010.

Dot Hill annual revenues and profit/loss

Dot Hill's annual revenues and profit/loss since 2009

With every quarterly report the CEO provides encouraging words of how the company strategy is working: there are signs of growth, yet the growth never really gets going and Dot Hill makes loss after loss after loss.

Look at the share price since 2006. The share price reached $7.10 on 31 March that year. It has never been up at such a giddy height since. The shares are now trading at $1.05. Investors have lost money. The company has lost money. The company is still losing money.

Dot Hill share price

Google Finance chart for Dot Hill (Click on it for a larger view)

Rival Xyratex is moving into HPC arrays with its ClusterStor product. And LSI exited the private-label computer manufacturer drive-array business, selling off Engenio to NetApp. In El Reg's storage desk's opinion, Dot Hill is moribund, stuck in a swamp and going nowhere; it needs to do something decisive to get out of it. ®

SANS - Survey on application security programs

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Kingston DataTraveler MicroDuo: Turn your phone into a 72GB beast
USB-usiness in the front, micro-USB party in the back
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
BOFH: Oh DO tell us what you think. *CLICK*
$%%&amp Oh dear, we've been cut *CLICK* Well hello *CLICK* You're breaking up...
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.