Dot Hill Extends HP Agreement, But Drops Guidance

Longmont, Colorado-based Dot Hill Systems, the developer of storage arrays, reported Wednesday that it has extended an agreement it has with HP, where it will continue to provide its private label RAID storage products to HP. Dot Hill said the extension covers an additional, five-year term, ending October 30, 2016. The extension comes as the company also revised its guidance downwards for the third quarter of 2011, saying it now expects net revenues of approximately $48M. That is below its earlier guidance of $50M to $54M. Dot Hill attributed the lowered guidance to "inventory re-balancing" by an un-named customer, and issues with delinquent payments from a software OEM customer.