Dot Hill Systems (HILL) 10-Q/A 7 Feb 14 2013 Q2 Quarterly report (amended) Financial data

Document_And_Entity_Informatio

Document And Entity Information	6 Months Ended
	Jun. 30, 2013	Jul. 31, 2013
Document And Entity Information [Abstract]	'	'
Entity Registrant Name	'DOT HILL SYSTEMS CORP	'
Entity Central Index Key	'0001042783	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Accelerated Filer	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-13	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q2	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	58,964,467

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Jun. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
ASSETS	'	'
Cash and cash equivalents	$40,402	$40,315
Accounts receivable, net	29,072	25,025
Inventories	4,193	5,037
Prepaid expenses and other assets	6,047	5,810
Total current assets	79,714	76,187
Property and equipment, net	7,842	7,147
Other assets	559	603
Total assets	88,115	83,937
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Accounts payable	24,528	22,659
Accrued compensation	5,163	4,863
Accrued expenses	7,312	8,690
Deferred revenue	3,970	2,889
Credit facility borrowings	2,100	2,800
Total current liabilities	43,073	41,901
Other long-term liabilities	3,397	3,261
Total liabilities	46,470	45,162
Commitments and Contingencies (Note 9)	'	'
Stockholders' Equity:	'	'
Preferred stock, $.001 par value, 10,000 shares authorized, zero shares issued and outstanding at December 31, 2012 and June 30, 2013	0	0
Common stock, $.001 par value, 100,000 shares authorized, 58,265 and 58,613 shares issued and outstanding at December 31, 2012 and June 30, 2013, respectively	58	58
Additional paid-in capital	328,145	326,575
Accumulated other comprehensive loss	-3,329	-3,533
Accumulated deficit	-283,229	-284,325
Total stockholders' equity	41,645	38,775
Total liabilities and stockholders' equity	$88,115	$83,937

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	58,613,000	58,265,000
Common stock, shares outstanding	58,613,000	58,265,000

Condensed_Consolidated_Stateme

Condensed Consolidated Statements Of Comprehensive Loss (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
NET REVENUE	$50,683	$47,708	$95,163	$102,306
COST OF GOODS SOLD	33,676	35,047	63,716	74,080
GROSS PROFIT	17,007	12,661	31,447	28,226
OPERATING EXPENSES:	'	'	'	'
Research and development	8,908	9,660	17,621	18,857
Sales and marketing	3,187	3,380	6,295	6,857
General and administrative	2,767	2,166	5,904	5,000
Total operating expenses	14,862	15,206	29,820	30,714
OPERATING INCOME (LOSS)	2,145	-2,545	1,627	-2,488
OTHER INCOME:	'	'	'	'
Interest income (expense), net	-8	-7	-15	0
Other Income, net	1	7	0	12
Total other income (expense), net	-7	0	-15	12
INCOME (LOSS) BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS	2,138	-2,545	1,612	-2,476
INCOME TAX EXPENSE	49	400	83	309
INCOME (LOSS) FROM CONTINUING OPERATIONS	2,089	-2,945	1,529	-2,785
LOSS FROM DISCONTINUED OPERATIONS	-12	-2,103	-433	-4,131
NET INCOME (LOSS)	2,077	-5,048	1,096	-6,916
NET EARNINGS (LOSS) PER SHARE:	'	'	'	'
Basic and diluted earnings (loss) per share from continuing operations	$0.04	($0.05)	$0.03	($0.05)
Loss per share from discontinued operations	$0	($0.04)	($0.01)	($0.07)
Basic and diluted (in usd per share)	$0.04	($0.09)	$0.02	($0.12)
WEIGHTED AVERAGE SHARES USED TO CALCULATE NET INCOME (LOSS) PER SHARE:	'	'	'	'
Weighted Average Number of Shares Outstanding, Basic	58,384	56,934	58,194	56,484
Weighted Average Number of Shares Outstanding, Diluted	58,797	56,934	58,616	56,484
COMPREHENSIVE LOSS:	'	'	'	'
NET INCOME (LOSS)	2,077	-5,048	1,096	-6,916
Foreign currency translation adjustment	60	-36	204	39
Comprehensive loss	$2,137	($5,084)	$1,300	($6,877)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements Of Cash Flows (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2013	Jun. 30, 2012
Cash Flows From Operating Activities:	'	'
NET INCOME (LOSS)	$1,096	($6,916)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	1,463	1,959
Stock-based compensation expense	1,357	2,076
Provision for doubtful accounts, net of recoveries	-5	25
Impairment of Intangible Assets (Excluding Goodwill)	0	1,647
Tangible Asset Impairment Charges	0	244
Changes in operating assets and liabilities:	'	'
Accounts receivable	-4,053	4,582
Inventories	839	595
Prepaid expenses and other assets	-240	3,194
Accounts payable	2,123	-9,162
Accrued compensation and other expenses	-836	-3,341
Deferred revenue	1,098	602
Other long-term liabilities	160	412
Net cash provided by (used in) operating activities	3,002	-4,083
Cash Flows From Investing Activities:	'	'
Purchases of property and equipment	-2,327	-1,425
Net cash used in investing activities	-2,327	-1,425
Cash Flows From Financing Activities:	'	'
Principal payment of note payable	0	-71
Payments on bank borrowings	-5,600	0
Proceeds from bank borrowings	4,900	0
Adjustments Related to Tax Withholding for Share-based Compensation	-215	-533
Proceeds from sale of stock to employees	428	448
Net cash used in financing activities	-487	-156
Effect of Exchange Rate Changes on Cash and Cash Equivalents	-101	-5
Net (Decrease) Increase in Cash and Cash Equivalents	87	-5,669
Cash and Cash Equivalents, beginning of period	40,315	46,168
Cash and Cash Equivalents, end of period	40,402	40,499
Supplemental Disclosures of Non-Cash Investing Activities:	'	'
Property and equipment acquired but not yet paid	308	811
Supplemental Cash Flow Data:	'	'
Cash paid for income taxes	$84	$39

Summary_Of_Significant_Account

Summary Of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2013
Accounting Policies [Abstract]	'
Summary Of Significant Accounting Policies	'
	Summary of Significant Accounting Policies
	Basis of Presentation
	The financial statements of Dot Hill Systems Corp. (referred to herein as Dot Hill, we, our or us) contained herein are unaudited and in the opinion of management contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented. The interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and with the instructions to Securities and Exchange Commission, or SEC, Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and disclosures required by GAAP for complete financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012. Operating results for the three and six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for future quarters or the year ending December 31, 2013.
	2012 amounts in our unaudited condensed consolidated financial statements have been retrospectively adjusted for discontinued operations. See Note 3.
	Use of Accounting Estimates
	The preparation of our unaudited condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of net revenue and expenses in the reporting periods. The accounting estimates that require management’s most significant and subjective judgments include revenue recognition, inventory valuation, recurring and specific issue warranty obligations, the valuation and recognition of stock-based compensation expense, and the valuation of long-lived assets, including intangible assets. In addition, we have other accounting policies that involve estimates such as the determination of useful lives of long-lived assets, accruals for restructuring, and income taxes, including the valuation allowance for deferred tax assets. Actual results may differ from these estimates and such differences could be material.
	Revenue Recognition
	We derive our revenue from sales of our hardware products, software and services.
	Hardware
	Hardware product revenue consists of revenue from sales of our AssuredSAN storage systems that is integrated with industry standard hardware which is essential to the functionality of the integrated system product. We recognize hardware product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred; (iii) the price is fixed or determinable; and (iv) collectability is reasonably assured. Revenue is recognized for hardware product sales upon transfer of title and risk of loss to the customer and in addition, upon installation for certain of our AssuredUVS appliance products. We record reductions to revenue for estimated product returns and pricing adjustments in the same period that the related revenue is recorded. These estimates are based on historical sales returns, analysis of credit memo data and other factors known at the time. If actual future returns and pricing adjustments differ from past experience and our estimates, additional revenue reserves may be required.
	Software
	In accordance with the specific guidance for recognizing software revenue, where applicable, we recognize revenue from perpetual software licenses at the inception of the license term assuming all revenue recognition criteria have been met. We use the relative method to allocate revenue to software licenses at the inception of the license term when vendor-specific objective evidence, or VSOE, of fair value for all undelivered elements related to our products is available. We have established VSOE for the fair value of our support services as measured by the stated renewal prices paid by our customers when the services are sold separately on a standalone basis.
	Specific long-term software contracts may contain multiple deliverables including software licenses, services, training and post-contract support for which we have not established VSOE for the fair value of any of the elements. Under specific guidance for recognizing software revenue, we begin recognizing revenue upon the delivery of all the elements except post-contract support (PCS). We defer all the direct and incremental costs related to the deliverables in these contracts until delivery of all the elements except PCS. The deferred revenue and costs are amortized over the contractual PCS support periods.
	During the preparation of the Company's consolidated financial statements for the year ended December 31, 2012 and the accounting analysis for the renewal of a long-term software contract, the Company determined that it had applied an inappropriate revenue recognition methodology to one of its long-term software contracts in 2010, 2011 and during the first three quarters of 2012. The Company recorded revenue as royalty payments were received on this contract and should have deferred all the revenue and direct and incremental costs until all the deliverables, except PCS, were delivered in 2012. This resulted in an understatement of $0.1 million and $2.2 million of revenue and $0.3 million and $1.9 million of costs for the three and six months ended June 30, 2012, respectively, which was corrected in the fourth quarter of 2012.
	Service
	Our service revenue primarily includes out-of-warranty repairs and product maintenance contracts. Out-of warranty repairs primarily consist of product repair services performed by our contract manufacturers for those customers that allowed their original product warranty to expire without purchasing one of our higher level support service plans. Revenue from these out-of-warranty repairs, and the associated cost of sales, is recognized in the period these services are provided. Service revenue also consists of product maintenance contracts purchased by our customers as an extension of our standard warranty. Revenue from our product maintenance contracts is deferred and recognized ratably over the contract term, generally 12 to 36 months. Net revenue derived from services was less than 10% of total revenue for all periods presented.
	Revenue Recognition for Arrangements with Multiple Deliverables
	For multi-element arrangements that include hardware products containing software essential to the hardware product’s functionality, undelivered software elements that relate to the hardware product’s essential software, and undelivered non-software services, we allocate revenue to all deliverables based on their relative selling prices. In such circumstances, we use a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) VSOE of fair value, (ii) third-party evidence of selling price, or TPE, and (iii) best estimate of the selling price, or ESP. VSOE generally exists only when we sell the deliverable separately and represents the actual price charged by us for that deliverable. ESPs reflect our best estimates of what the selling prices of elements would be if they were sold regularly on a standalone basis.
	From time to time, we enter into arrangements with customers that include acceptance criteria. In such instances, we defer all revenue on the arrangement until customer acceptance is obtained or the acceptance clause lapses.
	Revenue Recognition for Sales to Channel Partners
	On sales to channel partners, we evaluate whether fees are considered fixed or determinable by considering a number of factors, including our ability to estimate returns, payment terms and our relationship and past history with the particular channel partner. If fees are not considered fixed or determinable at the time of sale to a channel partner, revenue recognition is deferred until there is persuasive evidence indicating the product has sold through to an end-user. Persuasive evidence of sell-through may include reports from channel partners documenting sell-through activity or data indicating an order has shipped to an end-user.
	Deferred Revenue
	We defer revenue on upfront nonrefundable payments from our customers and recognize it ratably over the term of the agreement, unless the payment is in exchange for products delivered that represent the culmination of a separate earnings process. When we provide consideration to a customer, we recognize the value of that consideration as a reduction in net revenue. We may be required to maintain inventory with certain of our largest OEM customers, which we refer to as hubbing arrangements. Pursuant to these arrangements we deliver products to a customer or a designated third-party warehouse based upon the customer’s projected needs, but do not recognize product revenue unless and until the customer has removed our product from the warehouse to incorporate into its end products.
	Concentration of Customers and Suppliers
	A majority of our net revenue is derived from a limited number of customers. We currently have two customers that account for more than 10% of our total net revenue: Hewlett Packard, or HP, and Tektronix, Inc., or Tektronix. Our agreements with our original equipment manufacturers, or OEM, partners do not contain any minimum purchase commitments, do not obligate our OEM partners to purchase their storage solutions exclusively from us and may be terminated at any time upon notice from the applicable partner.
	Net revenue by major customer is as follows (as a percentage of total net revenue):
		Three Months Ended					Six Months Ended
		June 30,					June 30,
		2012		2013			2012		2013
	HP	72	%	52	%		66	%	57	%
	Tektronix	7	%	21	%		13	%	16	%
	Other customers less than 10%	21	%	27	%		21	%	27	%
	Total	100	%	100	%		100	%	100	%
	HP and Tektronix continue to account for a significant percentage of our sales. If our relationship with HP or Tektronix were disrupted or declined significantly, we would lose a substantial portion of our anticipated net revenue and our business could be materially harmed. We cannot guarantee that our relationship with HP, Tektronix or our other customers will expand or not otherwise be disrupted.
	We expect that the sale of our products to a limited number of customers will continue to account for a high percentage of net revenue for the foreseeable future. Our Product Purchase Agreement with HP, as amended, terminates on October 30, 2016. HP also holds warrants to purchase 1,602,489 shares of our common stock at an exercise price of $2.40 per share, expiring on October 30, 2016.
	We currently rely on a limited number of contract manufacturing partners to produce substantially all of our products. As a result, should any of our current manufacturing partners, such as Foxconn Technology Group, or parts suppliers not produce and deliver inventory for us to sell on a timely basis, operating results may be adversely impacted.
	Cash and Cash Equivalents
	We classify investments as cash equivalents if they are readily convertible to cash and have original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist primarily of money market mutual funds issued or managed in the United States. As of December 31, 2012 and June 30, 2013, the carrying value of cash and cash equivalents approximates fair value due to the short period of time to maturity.
	As of June 30, 2013, $3.1 million of the $40.4 million of cash and cash equivalents was held by our foreign subsidiaries.
	Allowance for Doubtful Accounts
	We establish an allowance for doubtful accounts for accounts receivable amounts that may not be collectible. We determine the allowance for doubtful accounts based on the aging of our accounts receivable balances and an analysis of our historical experience of bad debt write-offs.
	Balance sheet details are as follows, (in thousands):
		June 30,			June 30,
		2012			2013
	Balance, beginning of the year	$	203		$	240
	Additions to allowance	25			3
	Write-offs	—			(213		)
	Recoveries	—			(8		)
	Balance, quarter ended	$	228		$	22
	Long-lived Asset Impairment
	We periodically review the recoverability of the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. An impairment in the carrying value of an asset group is recognized whenever anticipated future undiscounted cash flows from an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk.
	In September 2011, our primary AssuredUVS customer informed us that the AssuredUVS software would no longer be a component of its business strategy, resulting in significant declines in revenues for the Company. Our long-lived assets consisted of the intangible assets associated with our acquisition of certain identified Cloverleaf Communications, Inc., or Cloverleaf, assets acquired in January 2010. The impairment of these long-lived assets is now reported in discontinued operations (see Note 3) since we have ceased all ongoing operational activities as of September 30, 2012.
	Recent Accounting Pronouncements
	From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective will not have a material impact on our results of operations and financial position.
	In February 2013, the FASB issued Accounting Standards Update 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"). This update requires presentation of reclassifications from accumulated other comprehensive income by component to net income either on the face of the income statement or in a single footnote, but does not require any new information to be disclosed. This update is effective for the interim and annual periods beginning after December 15, 2012. The Company has adopted ASU 2013-2 as of the Company's interim period ending March 31, 2013. The adoption of this update has not had any impact on the Company's financial statements as the Company has not had any reclassifications from accumulated other comprehensive income to net income. Other comprehensive income in each period is comprised solely of foreign currency translation adjustments.

Earnings_Per_Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2013
Earnings Per Share [Abstract]	'
Earnings Per Share	'
	Earnings Per Share
	Basic earnings per share, for both continuing and discontinued operations, is calculated by dividing net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share, for both continuing and discontinued operations, is computed by dividing net income (loss) for the period by the weighted average number of shares of common stock outstanding during the period and including the dilutive effect of common stock that would be issued assuming conversion or exercise of outstanding warrants, stock options, share based compensation awards and other dilutive securities. No such items were included in the computation of diluted loss per share in the three and six months ended June 30, 2012 because we incurred net losses in the periods and the effect of inclusion would have been anti-dilutive.
	The following is a reconciliation of weighted-average shares outstanding used in the calculation of basic and diluted earnings from continuing operations per share for the three and six months ended June 30, 2012 and 2013 (in thousands, except per share data):
		Three Months Ended							Six Months Ended
		June 30,							June 30,
		2012				2013			2012			2013
	Income (loss) from continuing operations	$	(2,945	)		$	2,089		$	(2,785	)	$	1,529
	Basic weighted-average common shares outstanding	56,934				58,384			56,484			58,194
	Assumed exercise of dilutive stock options and restricted stock	—				413			—			422
	Diluted weighted-average common shares outstanding	56,934				58,797			56,484			58,616
	Income (loss) from continuing operations:
	Basic earnings (loss) per share	$	(0.05	)		$	0.04		$	(0.05	)	$	0.03
	Diluted earnings (loss) per share	$	(0.05	)		$	0.04		$	(0.05	)	$	0.03
	Outstanding equity awards not included in the calculation of diluted net income (loss) per share because their effect was anti-dilutive were as follows:
		Three Months Ended											Six Months Ended
		June 30,											June 30,
		2012						2013					2012			2013
		Number of			Range of			Number of			Range of		Number of	Range of		Number of	Range of
		Potential			Exercise Prices			Potential			Exercise Prices		Potential	Exercise Prices		Potential	Exercise Prices
		Shares						Shares					Shares			Shares
	Stock options	9,298,263			$0.47 - $16.36			7,299,887			$1.26 - $16.36		9,298,263	$0.47 - $16.36		8,725,951	$1.06 - $16.36
	Unvested stock awards	1,132,568			$	—		5,550			—		1,132,568	$	—	11,753	$	—
	Warrants	1,602,489			$	2.4		1,602,489			2.4		1,602,489	$	2.4	1,602,489	$	2.4
	Shares issued
	During the six months ended June 30, 2013, there were 31,000 shares issued from exercise of stock options, 30,000 restricted stock awards granted, and 458,000 shares purchased through our Employee Stock Purchase Plan. Additionally, during the six months ended June 30, 2013, there were 147,000 shares repurchased for tax purposes and 23,000 restricted stock awards canceled. During the year ended December 31, 2012, there were 27,000 shares issued from exercise of stock options, 844,000 restricted stock awards granted, and 675,000 shares purchased through our Employee Stock Purchase Plan. Additionally, during the year ended December 31, 2012, there were 485,000 shares repurchased for tax purposes and 495,000 restricted stock awards canceled.

Discontinued_Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]	'
Discontinued Operations	'
	Discontinued Operations
	During 2011, our primary AssuredUVS customer informed us that the AssuredUVS software would no longer be a component of its business strategy, which would result in a significant decline in revenues for the Company. In February 2012, our Board of Directors approved a plan to exit our AssuredUVS business and close down our Israel Technology Development Center. During the second quarter of 2012, we explored the potential sale of the AssuredUVS business, but were unsuccessful in locating a buyer and ended efforts to sell the business or its component assets as of June 30, 2012. Accordingly, we recognized an impairment of $0.2 million of property, plant and equipment and $1.6 million for the remaining value of acquired software as a component of cost of goods sold during the three months ended June 30, 2012. The AssuredUVS business is now recorded in discontinued operations since we ceased all significant ongoing operational activities as of September 30, 2012.
	The following is a summary of the components of loss from discontinued operations for the three and six months ended June 30, 2012 and 2013 (in thousands):
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2012			2013			2012			2013
	Net revenue	$	60		$	2		$	206		$	22
	Cost of goods sold	1,766			11			2,303			142
	Gross loss	(1,706		)	(9		)	(2,097		)	(120		)
	Operating expenses:
	Research and development	17			—			762			—
	Sales and marketing	—			—			56			—
	General and administrative	308			3			486			323
	Restructuring charge (recovery)	72			—			729			(10		)
	Total operating expenses	397			3			2,033			313
	Operating loss	(2,103		)	(12		)	(4,130		)	(433		)
	Other expense, net	—			—			(1		)	—
	Loss from discontinued operations	$	(2,103	)	$	(12	)	$	(4,131	)	$	(433	)
	The activity in 2013 is limited to the continued support of certain maintenance contracts entered into prior to shutting down the Israel Technology Development Center, as well as expenses related to the resolution of a dispute with the former primary AssuredUVS customer.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2013
Inventory Disclosure [Abstract]	'
Inventories	'
	Inventories
	The components of inventories consist of the following (in thousands):
		December 31,		June 30,
		2012		2013
	Purchased parts and materials	$	3,051	$	2,139
	Finished goods	1,986		2,054
	Total inventory	$	5,037	$	4,193
	Inventories are valued at the lower of cost (first-in, first-out method) or market value. The valuation of production inventory requires us to estimate excess or obsolete inventory. The determination of excess or obsolete inventory requires us to estimate the future demand for our products. Our markets are volatile, subject to technological risks and price changes and inventory reduction programs by our customers. In addition, we are required to make last time buys of certain components on occasion. These factors result in a risk that we will forecast incorrectly and purchase excess inventories of particular products or have commitments to purchase excess inventory components from our suppliers. As a result, actual demand will differ from forecasts, and such a difference has in the past and may in the future have a material effect on our financial statements. Any write downs to inventory due to the existence of excess quantities, physical obsolescence, changes in pricing, damage, or other causes establish a new cost basis for the inventory. When we sell or dispose of reserved inventory the new cost basis is charged to cost of sales. Service inventory is amortized ratably over the estimated life of the related product series.

Intangible_Assets

Intangible Assets	6 Months Ended
	Jun. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Assets	'
	Intangible Assets
	Identifiable intangible assets are as follows (in thousands), as of December 31, 2012 and June 30, 2013:
		Estimated Useful	Gross		Accumulated			Net
		Life			Amortization
	RaidCore technology	4 years	$	4,256	$	(4,256	)	$	—
	Total intangible assets		$	4,256	$	(4,256	)	$	—
	Amortization expense related to intangible assets totaled $0.3 million and $0.7 million for the three and six months ended June 30, 2012, respectively, including $0.0 million and $0.2 million, respectively, included in discontinued operations. There was no amortization expense related to intangible assets during the three and six months ended June 30, 2013.

Product_Warranties

Product Warranties	6 Months Ended
	Jun. 30, 2013
Product Warranties Disclosures [Abstract]	'
Product Warranties	'
	Product Warranties
	Our standard warranty provides that if our systems do not function to published specifications, we will repair or replace the defective component or system without charge generally for a period of three years. We generally extend to our customers the warranties provided to us by our suppliers, and accordingly, the majority of our warranty obligations to customers are intended to be covered by corresponding supplier warranties. For warranty costs not covered by our suppliers, we provide for estimated warranty costs in the period the revenue is recognized. Estimated liabilities for product warranties are included in accrued expenses.
	Our warranty accrual and cost activity is as follows (in thousands):
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2012			2013			2012			2013
	Balance, beginning of period	$	6,930		$	2,743		$	6,871		$	4,455
	Charges to operations	106			372			474			490
	Deductions for payments made	(2,199		)	(145		)	(2,508		)	(1,166		)
	Changes in estimates	(58		)	(287		)	(58		)	(1,096		)
	Balance, end of period	$	4,779		$	2,683		$	4,779		$	2,683
	During the first quarter of 2013, we were able to negotiate more favorable rates with a third-party service provider. Accordingly, we adjusted our warranty accrual by $0.8 million to reflect this change.

Credit_Facilities

Credit Facilities	6 Months Ended
	Jun. 30, 2013
Line of Credit Facility [Abstract]	'
Credit Facilities	'
	Credit Facilities
	We maintain a credit facility with Silicon Valley Bank for cash advances of up to an aggregate of $30 million based upon an advance rate dependent on certain concentration limits within eligible accounts receivable. These limits exclude certain eligible customer receivables if an individual customer account balance exceeds 25, 50 or 70 percent of the total eligible accounts receivable, depending on the customer, as defined by our Loan and Security Agreement with Silicon Valley Bank. Borrowings under the credit facility bear interest at the prime rate, which was 4% as of June 30, 2013 and are secured by substantially all of our accounts receivable, deposit and securities accounts. The agreement provides for a negative pledge on our inventory and intellectual property, subject to certain exceptions, and contains usual and customary covenants for an arrangement of its type, including an obligation that we maintain at all times a net worth, as defined in the agreement, of $50 million, increasing by 50% of net income, 50% of issuances of equity and 50% of the principal amount of any subordinated debt. The agreement also includes provisions to increase the financing facility by $20 million subject to our meeting certain requirements, including $40 million in borrowing base for the immediately preceding 90 days, and Silicon Valley Bank locating a lender willing to finance the additional facility. In addition, if our cash and cash equivalents net of the total amount outstanding under the credit facility fall below $20 million (measured on a rolling three-month basis), the interest rate will increase to prime plus 1% and additional restrictions will apply. The maturity date of the credit facility is July 21, 2015. As of June 30, 2013, there was $2.1 million outstanding under the Silicon Valley Bank line of credit. There was $21.0 million available for borrowing under the agreement as of June 30, 2013. We are currently in compliance with all covenant requirements.

Fair_Value_Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2013
Fair Value Disclosures [Abstract]	'
Fair Value Measurements	'
	Fair Value Measurements
	The short-term nature of our financial instruments expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market interest rates. There were no transfers between Level I, II or III inputs for any of our assets measured at fair value during the reporting period.
	Assets Measured at Fair Value on a Recurring Basis
				Fair Value Measurements Using
	Description	December 31,		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
		2012
		(in thousands)
	Cash and cash equivalents	$	40,315	$	40,315	$	—	$	—	$	—
				Fair Value Measurements Using
	Description	June 30,		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
		2013
		(in thousands)
	Cash and cash equivalents	$	40,402	$	40,402	$	—	$	—	$	—
	Fair Value of Financial Instruments
	The Company’s financial instruments consist of cash and cash equivalents, and credit facility borrowings. The following disclosures relate to financial instruments for which the ending balances at December 31, 2012 and June 30, 2013, are not carried at fair value in their entirety on the Unaudited Condensed Consolidated Balance Sheets. These tables present the carrying value and fair value, by fair value hierarchy, of our financial instruments, excluding cash and cash equivalents at December 31, 2012 and June 30, 2013, respectively (in thousands).
				Fair Value Measurements Using
	Description	December 31, 2012		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
	Credit facility borrowings	$	2,800	$	—	$	2,800	$	—	$	—
				Fair Value Measurements Using
	Description	June 30, 2013		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
	Credit facility borrowings	$	2,100	$	—	$	2,100	$	—	$	—
	The short-term nature of our financial instruments expose the Company to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market interest rates.

Commitments_And_Contingencies

Commitments And Contingencies	6 Months Ended
	Jun. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments And Contingencies	'
	Commitments and Contingencies
	We are involved in certain legal actions and claims from time to time arising in the ordinary course of business. Management believes that the outcome of such litigation and claims could have a material effect on our financial statements. Historically, the outcome of such litigation and claims has not had a material adverse effect on our financial condition or results of operations.

Segment_Information

Segment Information	6 Months Ended
	Jun. 30, 2013
Segment Reporting [Abstract]	'
Segment Information	'
	Segment Information
	Operating segments, as defined in Accounting Standard Codification, or ASC, 280 Segment Reporting, are components of an enterprise for which separate financial information is available and is evaluated regularly by the Chief Operating Decision Maker, or CODM, in deciding how to allocate resources and in assessing performance. ASC 280 also requires disclosures about products and services, geographic areas and significant customers.
	Our CODM operates our business in one reportable operating segment that includes the design, manufacture and marketing of a range of software and hardware storage systems for the entry and midrange storage markets.
	Geographic Revenues
	Net revenue is recorded in the geographic area in which the sale originated. Information concerning principal geographic areas in which we operate is as follows (in thousands):
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2012		2013		2012		2013
	Net revenue:
	United States	$	47,346	$	50,518	$	101,433	$	94,682
	Europe, Middle East and Africa	4		1		9		2
	Asia	358		164		864		479
	Total net revenue	$	47,708	$	50,683	$	102,306	$	95,163

Summary_Of_Significant_Account1

Summary Of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2013
Accounting Policies [Abstract]	'
Basis of Presentation	'
	Basis of Presentation
	The financial statements of Dot Hill Systems Corp. (referred to herein as Dot Hill, we, our or us) contained herein are unaudited and in the opinion of management contain all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for the periods presented. The interim unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and with the instructions to Securities and Exchange Commission, or SEC, Form 10-Q and Article 10 of SEC Regulation S-X. They do not include all of the information and disclosures required by GAAP for complete financial statements. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012. Operating results for the three and six months ended June 30, 2013 are not necessarily indicative of the results that may be expected for future quarters or the year ending December 31, 2013.
	2012 amounts in our unaudited condensed consolidated financial statements have been retrospectively adjusted for discontinued operations.
Use of Accounting Estimates	'
	Use of Accounting Estimates
	The preparation of our unaudited condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the dates of the financial statements and the reported amounts of net revenue and expenses in the reporting periods. The accounting estimates that require management’s most significant and subjective judgments include revenue recognition, inventory valuation, recurring and specific issue warranty obligations, the valuation and recognition of stock-based compensation expense, and the valuation of long-lived assets, including intangible assets. In addition, we have other accounting policies that involve estimates such as the determination of useful lives of long-lived assets, accruals for restructuring, and income taxes, including the valuation allowance for deferred tax assets. Actual results may differ from these estimates and such differences could be material.
Revenue Recognition	'
	Revenue Recognition
	We derive our revenue from sales of our hardware products, software and services.
	Hardware
	Hardware product revenue consists of revenue from sales of our AssuredSAN storage systems that is integrated with industry standard hardware which is essential to the functionality of the integrated system product. We recognize hardware product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists; (ii) delivery has occurred; (iii) the price is fixed or determinable; and (iv) collectability is reasonably assured. Revenue is recognized for hardware product sales upon transfer of title and risk of loss to the customer and in addition, upon installation for certain of our AssuredUVS appliance products. We record reductions to revenue for estimated product returns and pricing adjustments in the same period that the related revenue is recorded. These estimates are based on historical sales returns, analysis of credit memo data and other factors known at the time. If actual future returns and pricing adjustments differ from past experience and our estimates, additional revenue reserves may be required.
	Software
	In accordance with the specific guidance for recognizing software revenue, where applicable, we recognize revenue from perpetual software licenses at the inception of the license term assuming all revenue recognition criteria have been met. We use the relative method to allocate revenue to software licenses at the inception of the license term when vendor-specific objective evidence, or VSOE, of fair value for all undelivered elements related to our products is available. We have established VSOE for the fair value of our support services as measured by the stated renewal prices paid by our customers when the services are sold separately on a standalone basis.
	Specific long-term software contracts may contain multiple deliverables including software licenses, services, training and post-contract support for which we have not established VSOE for the fair value of any of the elements. Under specific guidance for recognizing software revenue, we begin recognizing revenue upon the delivery of all the elements except post-contract support (PCS). We defer all the direct and incremental costs related to the deliverables in these contracts until delivery of all the elements except PCS. The deferred revenue and costs are amortized over the contractual PCS support periods.
	During the preparation of the Company's consolidated financial statements for the year ended December 31, 2012 and the accounting analysis for the renewal of a long-term software contract, the Company determined that it had applied an inappropriate revenue recognition methodology to one of its long-term software contracts in 2010, 2011 and during the first three quarters of 2012. The Company recorded revenue as royalty payments were received on this contract and should have deferred all the revenue and direct and incremental costs until all the deliverables, except PCS, were delivered in 2012. This resulted in an understatement of $0.1 million and $2.2 million of revenue and $0.3 million and $1.9 million of costs for the three and six months ended June 30, 2012, respectively, which was corrected in the fourth quarter of 2012.
	Service
	Our service revenue primarily includes out-of-warranty repairs and product maintenance contracts. Out-of warranty repairs primarily consist of product repair services performed by our contract manufacturers for those customers that allowed their original product warranty to expire without purchasing one of our higher level support service plans. Revenue from these out-of-warranty repairs, and the associated cost of sales, is recognized in the period these services are provided. Service revenue also consists of product maintenance contracts purchased by our customers as an extension of our standard warranty. Revenue from our product maintenance contracts is deferred and recognized ratably over the contract term, generally 12 to 36 months. Net revenue derived from services was less than 10% of total revenue for all periods presented.
	Revenue Recognition for Arrangements with Multiple Deliverables
	For multi-element arrangements that include hardware products containing software essential to the hardware product’s functionality, undelivered software elements that relate to the hardware product’s essential software, and undelivered non-software services, we allocate revenue to all deliverables based on their relative selling prices. In such circumstances, we use a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) VSOE of fair value, (ii) third-party evidence of selling price, or TPE, and (iii) best estimate of the selling price, or ESP. VSOE generally exists only when we sell the deliverable separately and represents the actual price charged by us for that deliverable. ESPs reflect our best estimates of what the selling prices of elements would be if they were sold regularly on a standalone basis.
	From time to time, we enter into arrangements with customers that include acceptance criteria. In such instances, we defer all revenue on the arrangement until customer acceptance is obtained or the acceptance clause lapses.
	Revenue Recognition for Sales to Channel Partners
	On sales to channel partners, we evaluate whether fees are considered fixed or determinable by considering a number of factors, including our ability to estimate returns, payment terms and our relationship and past history with the particular channel partner. If fees are not considered fixed or determinable at the time of sale to a channel partner, revenue recognition is deferred until there is persuasive evidence indicating the product has sold through to an end-user. Persuasive evidence of sell-through may include reports from channel partners documenting sell-through activity or data indicating an order has shipped to an end-user.
	Deferred Revenue
	We defer revenue on upfront nonrefundable payments from our customers and recognize it ratably over the term of the agreement, unless the payment is in exchange for products delivered that represent the culmination of a separate earnings process. When we provide consideration to a customer, we recognize the value of that consideration as a reduction in net revenue. We may be required to maintain inventory with certain of our largest OEM customers, which we refer to as hubbing arrangements. Pursuant to these arrangements we deliver products to a customer or a designated third-party warehouse based upon the customer’s projected needs, but do not recognize product revenue unless and until the customer has removed our product from the warehouse to incorporate into its end products.
Concentration of Customers and Suppliers	'
	Concentration of Customers and Suppliers
	A majority of our net revenue is derived from a limited number of customers. We currently have two customers that account for more than 10% of our total net revenue: Hewlett Packard, or HP, and Tektronix, Inc., or Tektronix. Our agreements with our original equipment manufacturers, or OEM, partners do not contain any minimum purchase commitments, do not obligate our OEM partners to purchase their storage solutions exclusively from us and may be terminated at any time upon notice from the applicable partner.
	Net revenue by major customer is as follows (as a percentage of total net revenue):
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2012		2013		2012		2013
	HP	72	%	52	%	66	%	57	%
	Tektronix	7	%	21	%	13	%	16	%
	Other customers less than 10%	21	%	27	%	21	%	27	%
	Total	100	%	100	%	100	%	100	%
	HP and Tektronix continue to account for a significant percentage of our sales. If our relationship with HP or Tektronix were disrupted or declined significantly, we would lose a substantial portion of our anticipated net revenue and our business could be materially harmed. We cannot guarantee that our relationship with HP, Tektronix or our other customers will expand or not otherwise be disrupted.
	We expect that the sale of our products to a limited number of customers will continue to account for a high percentage of net revenue for the foreseeable future. Our Product Purchase Agreement with HP, as amended, terminates on October 30, 2016. HP also holds warrants to purchase 1,602,489 shares of our common stock at an exercise price of $2.40 per share, expiring on October 30, 2016.
	We currently rely on a limited number of contract manufacturing partners to produce substantially all of our products. As a result, should any of our current manufacturing partners, such as Foxconn Technology Group, or parts suppliers not produce and deliver inventory for us to sell on a timely basis, operating results may be adversely impacted.
Cash and Cash Equivalents	'
	Cash and Cash Equivalents
	We classify investments as cash equivalents if they are readily convertible to cash and have original maturities of three months or less at the time of acquisition. Cash and cash equivalents consist primarily of money market mutual funds issued or managed in the United States. As of December 31, 2012 and June 30, 2013, the carrying value of cash and cash equivalents approximates fair value due to the short period of time to maturity.
	As of June 30, 2013, $3.1 million of the $40.4 million of cash and cash equivalents was held by our foreign subsidiaries.
Allowance for Doubtful Accounts	'
	Allowance for Doubtful Accounts
	We establish an allowance for doubtful accounts for accounts receivable amounts that may not be collectible. We determine the allowance for doubtful accounts based on the aging of our accounts receivable balances and an analysis of our historical experience of bad debt write-offs.
Long-lived Asset Impairment	'
	Long-lived Asset Impairment
	We periodically review the recoverability of the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate that their carrying value may not be recoverable. An impairment in the carrying value of an asset group is recognized whenever anticipated future undiscounted cash flows from an asset group are estimated to be less than its carrying value. The amount of impairment recognized is the difference between the carrying value of the asset group and its fair value. Fair value estimates are based on assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk.
	In September 2011, our primary AssuredUVS customer informed us that the AssuredUVS software would no longer be a component of its business strategy, resulting in significant declines in revenues for the Company. Our long-lived assets consisted of the intangible assets associated with our acquisition of certain identified Cloverleaf Communications, Inc., or Cloverleaf, assets acquired in January 2010. The impairment of these long-lived assets is now reported in discontinued operations (see Note 3) since we have ceased all ongoing operational activities as of September 30, 2012.
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that the impact of recently issued standards that are not yet effective will not have a material impact on our results of operations and financial position.
	In February 2013, the FASB issued Accounting Standards Update 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"). This update requires presentation of reclassifications from accumulated other comprehensive income by component to net income either on the face of the income statement or in a single footnote, but does not require any new information to be disclosed. This update is effective for the interim and annual periods beginning after December 15, 2012. The Company has adopted ASU 2013-2 as of the Company's interim period ending March 31, 2013. The adoption of this update has not had any impact on the Company's financial statements as the Company has not had any reclassifications from accumulated other comprehensive income to net income. Other comprehensive income in each period is comprised solely of foreign currency translation adjustments.

Summary_Of_Significant_Account2

Summary Of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2013
Accounting Policies [Abstract]	'
Net revenue by major customer	'
	Net revenue by major customer is as follows (as a percentage of total net revenue):
		Three Months Ended					Six Months Ended
		June 30,					June 30,
		2012		2013			2012		2013
	HP	72	%	52	%		66	%	57	%
	Tektronix	7	%	21	%		13	%	16	%
	Other customers less than 10%	21	%	27	%		21	%	27	%
	Total	100	%	100	%		100	%	100	%
Allowance for doubtful accounts	'
	Balance sheet details are as follows, (in thousands):
		June 30,			June 30,
		2012			2013
	Balance, beginning of the year	$	203		$	240
	Additions to allowance	25			3
	Write-offs	—			(213		)
	Recoveries	—			(8		)
	Balance, quarter ended	$	228		$	22

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2013
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]	'
Schedule of Weighted Average Number of Shares [Table Text Block]	'
	The following is a reconciliation of weighted-average shares outstanding used in the calculation of basic and diluted earnings from continuing operations per share for the three and six months ended June 30, 2012 and 2013 (in thousands, except per share data):
		Three Months Ended							Six Months Ended
		June 30,							June 30,
		2012				2013			2012			2013
	Income (loss) from continuing operations	$	(2,945	)		$	2,089		$	(2,785	)	$	1,529
	Basic weighted-average common shares outstanding	56,934				58,384			56,484			58,194
	Assumed exercise of dilutive stock options and restricted stock	—				413			—			422
	Diluted weighted-average common shares outstanding	56,934				58,797			56,484			58,616
	Income (loss) from continuing operations:
	Basic earnings (loss) per share	$	(0.05	)		$	0.04		$	(0.05	)	$	0.03
	Diluted earnings (loss) per share	$	(0.05	)		$	0.04		$	(0.05	)	$	0.03
Outstanding equity awards not included in calculation of diluted net loss per share	'
	Outstanding equity awards not included in the calculation of diluted net income (loss) per share because their effect was anti-dilutive were as follows:
		Three Months Ended											Six Months Ended
		June 30,											June 30,
		2012						2013					2012			2013
		Number of			Range of			Number of			Range of		Number of	Range of		Number of	Range of
		Potential			Exercise Prices			Potential			Exercise Prices		Potential	Exercise Prices		Potential	Exercise Prices
		Shares						Shares					Shares			Shares
	Stock options	9,298,263			$0.47 - $16.36			7,299,887			$1.26 - $16.36		9,298,263	$0.47 - $16.36		8,725,951	$1.06 - $16.36
	Unvested stock awards	1,132,568			$	—		5,550			—		1,132,568	$	—	11,753	$	—
	Warrants	1,602,489			$	2.4		1,602,489			2.4		1,602,489	$	2.4	1,602,489	$	2.4

Discontinued_Operations_Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]	'
Summary of the components of loss from discontinued operations	'
	The following is a summary of the components of loss from discontinued operations for the three and six months ended June 30, 2012 and 2013 (in thousands):
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2012			2013			2012			2013
	Net revenue	$	60		$	2		$	206		$	22
	Cost of goods sold	1,766			11			2,303			142
	Gross loss	(1,706		)	(9		)	(2,097		)	(120		)
	Operating expenses:
	Research and development	17			—			762			—
	Sales and marketing	—			—			56			—
	General and administrative	308			3			486			323
	Restructuring charge (recovery)	72			—			729			(10		)
	Total operating expenses	397			3			2,033			313
	Operating loss	(2,103		)	(12		)	(4,130		)	(433		)
	Other expense, net	—			—			(1		)	—
	Loss from discontinued operations	$	(2,103	)	$	(12	)	$	(4,131	)	$	(433	)
	The activity in 2013 is limited to the continued support of certain maintenance contracts entered into prior to shutting down the Israel Technology Development Center, as well as expenses related to the resolution of a dispute with the former primary AssuredUVS customer.

Inventories_Tables

Inventories (Tables)	6 Months Ended
	Jun. 30, 2013
Inventory Disclosure [Abstract]	'
Components of inventory	'
	The components of inventories consist of the following (in thousands):
		December 31,		June 30,
		2012		2013
	Purchased parts and materials	$	3,051	$	2,139
	Finished goods	1,986		2,054
	Total inventory	$	5,037	$	4,193

Intangible_Assets_Tables

Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Schedule of identifiable intangible assets	'
	Identifiable intangible assets are as follows (in thousands), as of December 31, 2012 and June 30, 2013:
		Estimated Useful	Gross		Accumulated			Net
		Life			Amortization
	RaidCore technology	4 years	$	4,256	$	(4,256	)	$	—
	Total intangible assets		$	4,256	$	(4,256	)	$	—

Product_Warranties_Tables

Product Warranties (Tables)	6 Months Ended
	Jun. 30, 2013
Product Warranties Disclosures [Abstract]	'
Warranty Accrual and Cost Activity	'
	Our warranty accrual and cost activity is as follows (in thousands):
		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2012			2013			2012			2013
	Balance, beginning of period	$	6,930		$	2,743		$	6,871		$	4,455
	Charges to operations	106			372			474			490
	Deductions for payments made	(2,199		)	(145		)	(2,508		)	(1,166		)
	Changes in estimates	(58		)	(287		)	(58		)	(1,096		)
	Balance, end of period	$	4,779		$	2,683		$	4,779		$	2,683

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2013
Fair Value Disclosures [Abstract]	'
Assets Measured at Fair Value on a Recurring Basis	'
				Fair Value Measurements Using
	Description	December 31, 2012		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
	Credit facility borrowings	$	2,800	$	—	$	2,800	$	—	$	—
				Fair Value Measurements Using
	Description	June 30, 2013		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
	Credit facility borrowings	$	2,100	$	—	$	2,100	$	—	$	—
				Fair Value Measurements Using
	Description	December 31,		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
		2012
		(in thousands)
	Cash and cash equivalents	$	40,315	$	40,315	$	—	$	—	$	—
				Fair Value Measurements Using
	Description	June 30,		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
		2013
		(in thousands)
	Cash and cash equivalents	$	40,402	$	40,402	$	—	$	—	$	—

Segment_Information_Tables

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2013
Segment Reporting [Abstract]	'
Net revenue by geographic area	'
	Net revenue is recorded in the geographic area in which the sale originated. Information concerning principal geographic areas in which we operate is as follows (in thousands):
		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2012		2013		2012		2013
	Net revenue:
	United States	$	47,346	$	50,518	$	101,433	$	94,682
	Europe, Middle East and Africa	4		1		9		2
	Asia	358		164		864		479
	Total net revenue	$	47,708	$	50,683	$	102,306	$	95,163

Summary_Of_Significant_Account3

Summary Of Significant Accounting Policies (Concentration of Customers and Suppliers) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013						Jun. 30, 2012
	customer		customer
Major customers	'	'	'						'
Allowance for doubtful accounts [Table Text Block]	'	'	'						'
			Balance sheet details are as follows, (in thousands):
				June 30,		June 30,
				2012		2013
			Balance, beginning of the year	$	203	$	240
			Additions to allowance	25		3
			Write-offs	—		(213		)
			Recoveries	—		(8		)
			Balance, quarter ended	$	228	$	22
Number of major customers	2	'	2						'
Concentration risk, percentage of total net revenues	100.00%	100.00%	100.00%						100.00%
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | HP	'	'	'						'
Major customers	'	'	'						'
Concentration risk, percentage of total net revenues	52.00%	72.00%	57.00%						66.00%
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Tektronix	'	'	'						'
Major customers	'	'	'						'
Concentration risk, percentage of total net revenues	21.00%	7.00%	16.00%						13.00%
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | Other customers less than 10%	'	'	'						'
Major customers	'	'	'						'
Concentration risk, percentage of total net revenues	27.00%	21.00%	27.00%						21.00%
Common Stock [Member] | HP	'	'	'						'
Major customers	'	'	'						'
Warrants to purchase shares of our common stock	1,602,489	'	1,602,489						'
Warrants, exercise price	2.4	'	2.4						'

Summary_Of_Significant_Account4

Summary Of Significant Accounting Policies (Allowance for Doubtful Accounts) (Details) (USD $)	6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2013						Jun. 30, 2012
Accounting Policies [Abstract]	'						'
Allowance for doubtful accounts [Table Text Block]	'						'
	Balance sheet details are as follows, (in thousands):
		June 30,		June 30,
		2012		2013
	Balance, beginning of the year	$	203	$	240
	Additions to allowance	25		3
	Write-offs	—		(213		)
	Recoveries	—		(8		)
	Balance, quarter ended	$	228	$	22
Allowance for Doubtful Accounts Receivable [Roll Forward]	'						'
Balance, beginning of the year	$240						$203
Provision for Doubtful Accounts	3						25
Allowance for Doubtful Accounts Receivable, Charge-offs	-213						0
Valuation Allowances and Reserves, Recoveries	8						0
Balance, quarter ended	$22						$228

Summary_Of_Significant_Account5

Summary Of Significant Accounting Policies (Revenue Recognition) (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2013	Jun. 30, 2013	Jun. 30, 2013	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2012	Jun. 30, 2012
					Foreign Subsidiaries [Member]	Minimum [Member]	Maximum [Member]	Net Revenue Derived From Services [Member]	Net Revenue Derived From Services [Member]	Revenue Recognition, Software [Member]	Revenue Recognition, Software [Member]
Deferred Revenue Arrangement [Line Items]	'	'	'	'	'	'	'	'	'	'	'
Overstatement of revenue	'	'	'	'	'	'	'	'	'	$100,000	$2,200,000
Overstatement of costs	'	'	'	'	'	'	'	'	'	300,000	1,900,000
Product maintenance contract term	'	'	'	'	'	'12 months	'36 months	'	'	'	'
Maximum percentage of total revenue	'	'	'	'	'	'	'	10.00%	10.00%	'	'
Cash and cash equivalents	$40,402,000	$40,315,000	$40,499,000	$46,168,000	$3,100,000	'	'	'	'	'	'

Summary_Of_Significant_Account6

Summary Of Significant Accounting Policies Cash and cash equivalents (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Dec. 31, 2011
In Thousands, unless otherwise specified
Cash and Cash Equivalents, at Carrying Value	$40,402	$40,315	$40,499	$46,168
Foreign Subsidiaries [Member]	'	'	'	'
Cash and Cash Equivalents, at Carrying Value	$3,100	'	'	'

Earnings_Per_Share_Details

Earnings Per Share (Details) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012	Dec. 31, 2012
Outstanding equity awards not included in the calculation of diluted net loss per share:	'	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period	'	'	-31,000	'	-27,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	'	'	'	0	'
Shares Paid for Tax Withholding for Share Based Compensation	'	'	-147,000	'	-485,000
Stock options	'	'	'	'	'
Outstanding equity awards not included in the calculation of diluted net loss per share:	'	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	7,299,887	9,298,263	8,725,951	9,298,263	'
Range of exercise prices, lower limit	1.26	0.47	1.06	0.47	'
Range of exercise prices, upper limit	16.36	16.36	16.36	16.36	'
Unvested restricted stock awards	'	'	'	'	'
Outstanding equity awards not included in the calculation of diluted net loss per share:	'	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5,550	1,132,568	11,753	1,132,568	'
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period	'	'	-23,000	'	-495,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	'	'	30,000	'	844,000
Warrant [Member]	'	'	'	'	'
Outstanding equity awards not included in the calculation of diluted net loss per share:	'	'	'	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,602,489	1,602,489	1,602,489	1,602,489	'
Warrants, exercise price	2.4	2.4	2.4	2.4	'
2000ESPP [Member]	'	'	'	'	'
Outstanding equity awards not included in the calculation of diluted net loss per share:	'	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	'	'	458,000	'	675,000

Earnings_Per_Share_Calculation

Earnings Per Share (Calculation of basic and diluted EPS) (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share [Abstract]	'	'	'	'
Income (Loss) from Continuing Operations Attributable to Parent	$2,089	($2,945)	$1,529	($2,785)
Weighted Average Number of Shares Outstanding, Basic	58,384	56,934	58,194	56,484
Incremental Common Shares Attributable to Share-based Payment Arrangements	413	0	422	0
Weighted Average Number of Shares Outstanding, Diluted	58,797	56,934	58,616	56,484
Earnings Per Share, Basic	$0.04	($0.05)	$0.03	($0.05)
Earnings Per Share, Diluted	$0.04	($0.05)	$0.03	($0.05)

Discontinued_Operations_Detail

Discontinued Operations (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Discontinued Operations [Line Items]	'	'	'	'
Tangible Asset Impairment Charges	'	$200	$0	$244
Loss from discontinued operations	'	'	'	'
Net revenue	'	'	22	206
Cost of goods sold	'	'	142	2,303
Gross profit	'	'	-120	-2,097
Operating expenses:	'	'	'	'
Research and development	'	'	0	762
Sales and marketing	'	'	0	56
General and administrative	'	'	323	486
Restructuring charge	'	'	-10	729
Total operating expenses	'	'	313	2,033
Operating loss	'	'	-433	-4,130
Other income (expense), net	'	'	0	1
Loss from discontinued operations	-12	-2,103	-433	-4,131
Impairment of Intangible Assets (Excluding Goodwill)	'	1,600	0	1,647
AssuredUVS [Member]	'	'	'	'
Loss from discontinued operations	'	'	'	'
Net revenue	2	60	'	'
Cost of goods sold	11	1,766	'	'
Gross profit	-9	-1,706	'	'
Operating expenses:	'	'	'	'
Research and development	0	17	'	'
Sales and marketing	0	0	'	'
General and administrative	3	308	'	'
Restructuring charge	0	72	'	'
Total operating expenses	3	397	'	'
Operating loss	-12	-2,103	'	'
Other income (expense), net	0	0	'	'
Loss from discontinued operations	($12)	($2,103)	'	'

Inventories_Details

Inventories (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]	'	'
Inventory, Raw Materials, Net of Reserves	$2,139	$3,051
Inventory, Finished Goods, Net of Reserves	2,054	1,986
Total inventory	$4,193	$5,037

Intangible_Assets_Details

Intangible Assets (Details) (USD $)	3 Months Ended		6 Months Ended		3 Months Ended	6 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2012	Dec. 31, 2012	Jun. 30, 2012	Jun. 30, 2012	Dec. 31, 2012	Jun. 30, 2013
					Discontinued Pperations [Member]	Discontinued Pperations [Member]	RaidCore Technology [Member]	RaidCore Technology [Member]
Finite-Lived Intangible Assets	'	'	'	'	'	'	'	'
Estimated Useful Life	'	'	'	'	'	'	'4 years	'4 years
Gross	$4,256,000	'	'	$4,256,000	'	'	$4,256,000	$4,256,000
Accumulated Amortization	-4,256,000	'	'	-4,256,000	'	'	-4,256,000	-4,256,000
Net	0	'	'	0	'	'	0	0
Amortization of intangible assets	$0	$300,000	$700,000	'	$0	$200,000	'	'

Product_Warranties_Details

Product Warranties (Details) (USD $)	3 Months Ended			6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Product Liability Contingency [Line Items]	'	'	'	'	'
Maximum product warranty term	'	'	'	'3 years	'
Warranty accrual	$2,683	$2,743	$4,779	$2,683	$4,779
Movement in Standard Product Warranty Accrual [Roll Forward]	'	'	'	'	'
Balance, beginning of period	2,743	4,455	6,930	4,455	6,871
Charges to operations	372	'	106	490	474
Deductions for costs incurred	-145	'	-2,199	-1,166	-2,508
Changes in estimates	-287	-809	-58	-1,096	-58
Balance, end of period	$2,683	$2,743	$4,779	$2,683	$4,779

Credit_Facilities_Details

Credit Facilities (Details) (USD $)	6 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Credit Facility [Line Items]	'	'
Letters of credit outstanding	$2,100,000	$2,800,000
Line of Credit Facility, Covenant Compliance	'. We are currently in compliance with all covenant requirements.	'
Line of Credit Facility, Interest Rate Description	'prime rate, which was 4% as of June 30, 2013	'
Line of Credit Facility, Collateral	' and are secured by substantially all of our accounts receivable, deposit and securities accounts. The agreement provides for a negative pledge on our inventory and intellectual property, subject to certain exceptions	'
Silicon Valley Bank	'	'
Credit Facility [Line Items]	'	'
Line of Credit Facility, Remaining Borrowing Capacity	21,000,000	'
Credit facility | Silicon Valley Bank	'	'
Credit Facility [Line Items]	'	'
Borrowing capacity	30,000,000	'
Minimum net worth requirement	50,000,000	'
Line of Credit Facility, Covenant Terms, Borrowing Base, Possible Increase	20,000,000	'
Period for borrowing base requirement	'90 days	'
Cash and cash equivalents, net of amount outstanding under credit agreement	20,000,000	'
Variable rate basis	'prime	'
Interest rate over prime	1.00%	'
Letters of credit | Silicon Valley Bank	'	'
Credit Facility [Line Items]	'	'
Letters of credit outstanding	2,100,000	'
Threshold One [Member]	'	'
Credit Facility [Line Items]	'	'
Customer accounts receivable concentration limit	25.00%	'
Threshold Two [Member]	'	'
Credit Facility [Line Items]	'	'
Customer accounts receivable concentration limit	50.00%	'
Threshold Three [Member]	'	'
Credit Facility [Line Items]	'	'
Customer accounts receivable concentration limit	70.00%	'
Required Borrowing Base Immediately Preceeding 90 Days [Member] | Credit facility | Silicon Valley Bank	'	'
Credit Facility [Line Items]	'	'
Borrowing base requirement	$40,000,000	'

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring Basis	'	'
Letters of credit outstanding	$2,100,000	$2,800,000
Liabilities, Fair Value Adjustment	0	0
Total	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis	'	'
Cash and cash equivalents	40,402,000	40,315,000
Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis	'	'
Line of Credit Facility, Fair Value of Amount Outstanding	0	0
Level 2	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis	'	'
Line of Credit Facility, Fair Value of Amount Outstanding	2,100,000	2,800,000
Level 3	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis	'	'
Line of Credit Facility, Fair Value of Amount Outstanding	0	0
Fair Value, Measurements, Recurring [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis	'	'
Assets, Fair Value Adjustment	0	0
Fair Value, Measurements, Recurring [Member] | Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis	'	'
Cash and cash equivalents	40,402,000	40,315,000
Fair Value, Measurements, Recurring [Member] | Level 2	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis	'	'
Cash and cash equivalents	0	0
Fair Value, Measurements, Recurring [Member] | Level 3	'	'
Fair Value, Assets and Liabilities Measured on Recurring Basis	'	'
Cash and cash equivalents	$0	$0

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended		6 Months Ended
In Thousands, unless otherwise specified	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
			segment
Segment Reporting Information [Line Items]	'	'	'	'
Number of reportable segments	'	'	1	'
Net revenue	$50,683	$47,708	$95,163	$102,306
United States	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Net revenue	50,518	47,346	94,682	101,433
Europe	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Net revenue	1	4	2	9
Asia	'	'	'	'
Segment Reporting Information [Line Items]	'	'	'	'
Net revenue	$164	$358	$479	$864