CARLSBAD, Calif., Dec. 9 /PRNewswire-FirstCall/ -- Dot Hill Systems Corp. announced that its board of directors had completed its review of potential restructuring and cost reduction opportunities and decided to implement a restructuring plan that will include severance costs and fees associated with facility reductions in the range of $1.25 million to $1.75 million. The company's board of directors also plans to consider additional restructuring measures as needed. Included in the restructuring plan is a 10 percent reduction in workforce, the majority of which will be completed in the current quarter. While the company was originally planning to consolidate most of its United States operations into Longmont, Colorado by the middle of 2009, in light of the current macro economic environment, it will now defer the facilities move until 2010 in order to preserve cash. Instead, the company currently plans to shut down approximately 40 percent of its Carlsbad facility by the end of the fourth quarter of fiscal 2008. "We expect the restructuring measures we have taken to result in savings of $2.5 million to $3.5 million in 2009," stated Hanif Jamal, Dot Hill's senior vice president and chief financial officer. "We will continue to consider additional expense reduction opportunities throughout 2009. We are very focused on reducing our operating losses and returning to profitability as soon as possible." The company's president and chief executive officer, Dana Kammersgard stated, "We have undertaken these cost-saving initiatives in the context of the global recession and its uncertain potential impact on the demand for our products. We continue to remain focused on executing on programs for our Tier-1 and other customers, while improving gross margins through product cost reductions and increased software sales. The actions we have announced today serve to lower our breakeven point. We intend to return to profitability and I remain cautiously optimistic about 2009." The company also reiterated the guidance it issued on November 6, 2008 for fourth quarter 2008 net revenues in the range of $70 million to $76 million and a net loss per fully diluted share of $0.05 to $0.10 on a non-GAAP basis, which excludes the effects of share-based compensation expense, severance and restructuring charges and currency gains and losses. About Dot Hill Systems Corp. Delivering innovative technology and global support, Dot Hill (NASDAQ: HILL) empowers the OEM 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, advanced technology and telecommunications companies as well as government agencies. Dot Hill solutions are certified to meet rigorous industry standards and military specifications, as well as RoHS and WEEE international environmental standards. Headquartered in Carlsbad, Calif., Dot Hill has offices and/or representatives in China, Germany, Japan, United Kingdom 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 anticipated costs and fees associated with the restructuring plan; the timing of future facilities relocations; the potential for additional expense reductions; and Dot Hill's projected financial results for the fourth quarter of 2008. 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 fourth quarter 2008 may be different from the financial guidance provided in this press release; the fact that Dot Hill does not have any minimum purchase agreements with any of its customers; the risk that Dot Hill's 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 be accepted by end-users; 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; unforeseen technological, intellectual property, personnel or engineering issues; and the additional risks set forth in the forms 8-K, 10-K and 10-Q most recently filed 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. DATASOURCE: Dot Hill Systems Corp. CONTACT: Hanif Jamal, Chief Financial Officer of Dot Hill Systems Corp., +1-760-931-5500, Web Site: http://www.dothill.com/

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