Feeds

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

What next for the mid-range drive vault biz?

Choosing a cloud hosting partner with confidence

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. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
'Kim Kardashian snaps naked selfies with a BLACKBERRY'. *Twitterati gasps*
More alleged private, nude celeb pics appear online
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Google+ GOING, GOING ... ? Newbie Gmailers no longer forced into mandatory ID slurp
Mountain View distances itself from lame 'network thingy'
EMC, HP blockbuster 'merger' shocker comes a cropper
Stand down, FTC... you can put your feet up for a bit
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.