On Jul 6, 2013, Zacks Investment Research upgraded
Dot Hill Systems Corp.
) to a Zacks Rank #1 (Strong Buy).
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With an impressive first quarter 2013 performance, better
visibility for the upcoming quarters, growing need for advanced
storage solutions to cope with the increasing demand for data
generation and data sharing activities, product launches and
expected growth in deal pipeline, this storage area network
solutions provider is an attractive investment opportunity. The
stock's return was 80.2% in the past one year. Dot Hill's shares
set a new 52-week high on Jun 27.
Why the Upgrade?
On May 9, 2013, Dot Hill reported first quarter 2013 results with
loss per share of 2 cents. The loss was narrower than the Zacks
Consensus Estimate of 3 cents loss per share. Revenues fell 18.5%
year over year but grew 1.0% sequentially to $48.5 million. An
unexpected surge in demand from one of its telecom customers in
the first quarter of 2012 led to an uneven year-over-year revenue
Dot Hill serves vertical markets such as media &
entertainment, telecommunications, big data/data analytics, oil
& gas, and digital image capture. The company believes that
the telecommunications and media & entertainment markets
continue to leverage from increasing data generated by smartphone
users and film studios, respectively.
Considering the demand growth, the company's disciplined cost
management and product ramp, Dot Hill expects higher revenue
growth and non-GAAP EPS accretion in the second half of 2013 and
further growth in 2014.
On May 7, 2013, Dot Hill announced the availability of its
AssuredSAN and AssuredSAN Pro storage solutions that feature
high-capacity 4 terabyte SAS hard disk drives. The newly offered
storage arrays will be energy efficient and will allow its
customers to reduce their cost-per-gigabyte. Apart from this, the
storage arrays will have reduced downtime and lower maintenance
and disposal cost.
There was no estimate revision in the past 30 days. But one
estimate each for fiscal 2013 and 2014 moved up over the past 60
days. The Zacks Consensus Estimate for 2013 and 2014 are $0.00
and 14 cents, up 2 cents and 14 cents over the last 60 days.
Other Stocks to Consider:
Investors could also consider similar stocks that are doing well
right now. These include
), carrying a Zacks Rank #1 (Strong Buy), and
), carrying a Zacks Rank #2 (Buy).