Network Computing is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Dot Hill's Alive & Well: Page 2 of 3

Sun business accounted for $48.5 million of Dot Hill’s fourth-quarter revenue, up by $4.6 million over the third quarter. Sun is Dot Hill's largest OEM, Lambert said.

But the company's got its sights set further, too. Lambert laid out Dot Hill’s two major goals for 2004: increase sales through Sun and increase sales through all its other OEMs.

Lambert gave no details of what products might be added to the relationship, but Sun has been testing Dot Hill SATA and UltraSCSI drives. When asked if Dot Hill might provide Sun with midrange SANs, CFO Preston Romm waxed oblique: “We are really focused overall on the volume part of the marketplace. It’s somewhat of an artificial line as to where you divide the entry level and mid-range. We do not have every one of the features that some of our largest competitors like EMC
or Hitachi Data Systems
have. But I can assure you we have those features on our roadmap.”

Sun appears to be stymied about drawing that midrange line. It reported total storage sales of $376 million when it announced earnings earlier this month. And storage sales grew at a lower rate than overall sales (see Sun Reduces Q2 Loss). But even though storage sales dropped 4 percent sequentially, they increased on the low end, where Sun OEMs Dot Hill gear, and at the high end, where it gets systems from Hitachi.

Other highlights of the Dot Hill call:

  • Sales to OEMs besides Sun increased 28 percent from the third quarter, and the company is focused on adding new, large OEMs;
  • Headcount grew in the fourth quarter, but staffing decreased overall for 2003;
  • Dot Hill shipped 19,954 units of its SANnet II Blade server;
  • Lambert gave guidance for the next quarter of revenue flat with last quarter and slightly higher net income.