DOT HILL SYSTEMS CORP

CIK:0001042783|SEC Filings

Condensed Consolidated Statements Of Comprehensive Loss - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Income Statement [Abstract]
NET REVENUE	$ 61,539	$ 48,222	$ 122,660	$ 96,429
COST OF GOODS SOLD	41,405	32,199	81,496	65,141
GROSS PROFIT	20,134	16,023	41,164	31,288
OPERATING EXPENSES:
Research and development	9,960	9,340	20,079	18,816
Sales and marketing	3,441	3,843	7,245	7,137
General and administrative	5,960	2,851	9,172	5,749
Total operating expenses	19,361	16,034	36,496	31,702
OPERATING INCOME (LOSS)	773	(11)	4,668	(414)
OTHER INCOME (EXPENSE):
Interest income (expense), net	(13)	(4)	(27)	(22)
Other Income, net	0	11	0	21
Total other income (expense), net	(13)	7	(27)	(1)
INCOME (LOSS) BEFORE INCOME TAXES	760	(4)	4,641	(415)
INCOME TAX EXPENSE	75	74	85	75
NET INCOME (LOSS)	$ 685	$ (78)	$ 4,556	$ (490)
NET INCOME (LOSS) PER SHARE:
Net Income (Loss) per share - basic and diluted	$ 0.01	$ 0.00	$ 0.07	$ (0.01)
WEIGHTED AVERAGE SHARES USED TO CALCULATE NET INCOME (LOSS) PER SHARE:
Weighted Average Number of Shares Outstanding, Basic	61,292	60,159	61,027	59,920
Weighted Average Number of Shares Outstanding, Diluted	66,562	60,159	65,611	59,920
COMPREHENSIVE LOSS:
NET INCOME (LOSS)	$ 685	$ (78)	$ 4,556	$ (490)
Foreign currency translation adjustment	27	1	20	(29)
Reclassification of accumulated foreign currency translation losses into net income (loss) upon liquidation of foreign subsidiary	2,677	0	2,677	0
Comprehensive income (loss)	$ 3,389	$ (77)	$ 7,253	$ (519)

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Cash Flows From Operating Activities:
NET INCOME (LOSS)	$ 4,556	$ (490)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	2,348	1,891
Share-based compensation expense	2,080	1,632
Provision for bad debt expense	9	2
Write-off of property and equipment	0	5
Foreign currency translation adjustment upon liquidation of foreign subsidiary	2,677	0
Changes in operating assets and liabilities:
Accounts receivable	(1,533)	9,861
Inventories	2,140	(1,035)
Prepaid expenses and other assets	4,693	2,544
Accounts payable	(9,225)	(9,122)
Accrued compensation and other expenses	2,378	(3,213)
Deferred revenue	(1,480)	831
Other long-term liabilities	(622)	(143)
Net cash provided by operating activities	8,021	2,763
Cash Flows From Investing Activities:
Purchases of property and equipment	(2,359)	(1,432)
Purchases of intangible assets	(2,177)	0
Net cash used in investing activities	(4,536)	(1,432)
Cash Flows From Financing Activities:
Payments on bank borrowings	0	(2,000)
Shares withheld for tax purposes	(10)	(80)
Proceeds from sale of stock to employees	3,186	2,500
Net cash provided by financing activities	3,176	420
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(16)	39
Net Increase in Cash and Cash Equivalents	6,645	1,790
Cash and Cash Equivalents, beginning of period	42,492	40,406
Cash and Cash Equivalents, end of period	49,137	42,196
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Capital expenditures incurred but not yet paid	970	832
Property and equipment transferred from inventory	0	42
Supplemental Cash Flow Data:
Cash paid for income taxes	$ 262	$ 260

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 49,137	$ 42,492
Accounts receivable, net	44,975	43,328
Inventories	9,201	11,342
Prepaid expenses and other assets	6,444	11,126
Total current assets	109,757	108,288
Property and equipment, net	8,923	8,764
Intangible assets	4,512	2,680
Other assets	485	500
Total assets	123,677	120,232
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	27,998	37,421
Accrued compensation	4,684	4,015
Accrued expenses	9,837	8,039
Deferred revenue	3,836	5,319
Total current liabilities	46,355	54,794
Other long-term liabilities	2,283	2,908
Total liabilities	$ 48,638	$ 57,702
Commitments and Contingencies (Note 8)
Stockholders' Equity:
Preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued or outstanding at December 31, 2014 and June 30, 2015	$ 0	$ 0
Common stock, $0.001 par value, 100,000 and 200,000 shares authorized, 60,777 and 62,251 shares issued and outstanding at December 31, 2014 and June 30, 2015, respectively	62	61
Additional paid-in capital	342,082	336,827
Accumulated other comprehensive loss	(455)	(3,152)
Accumulated deficit	(266,650)	(271,206)
Total stockholders' equity	75,039	62,530
Total liabilities and stockholders' equity	$ 123,677	$ 120,232