Dot Hill Systems (HILL) 10-Q 9 May 14 2014 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
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	31-Mar-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	59,989,911

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
ASSETS	'	'
Cash and cash equivalents	$40,322,000	$40,406,000
Accounts receivable, net	33,672,000	42,907,000
Inventories	7,664,000	6,539,000
Prepaid expenses and other assets	6,106,000	7,265,000
Total current assets	87,764,000	97,117,000
Property and equipment, net	8,197,000	7,565,000
Other assets	625,000	702,000
Total assets	96,586,000	105,384,000
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Accounts payable	26,259,000	33,255,000
Accrued compensation	3,527,000	4,922,000
Accrued expenses	7,994,000	8,935,000
Deferred revenue	5,012,000	4,211,000
Credit facility borrowings	0	2,000,000
Total current liabilities	42,792,000	53,323,000
Other long-term liabilities	4,229,000	4,414,000
Total liabilities	47,021,000	57,737,000
Commitments and Contingencies (Note 8)	'	'
Stockholders' Equity:	'	'
Preferred stock, $.001 par value, 10,000 shares authorized, no shares issued or outstanding at December 31, 2013 and March 31, 2014	0	0
Common stock, $.001 par value, 100,000 shares authorized, 59,138 and 59,953 shares issued and outstanding at December 31, 2013 and March 31, 2014, respectively	60,000	59,000
Additional paid-in capital	332,462,000	330,103,000
Accumulated other comprehensive loss	-3,284,000	-3,254,000
Accumulated deficit	-279,673,000	-279,261,000
Total stockholders' equity	49,565,000	47,647,000
Total liabilities and stockholders' equity	$96,586,000	$105,384,000

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
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	59,953,000	59,138,000
Common stock, shares outstanding	59,953,000	59,138,000

Condensed_Consolidated_Stateme

Condensed Consolidated Statements Of Comprehensive Loss (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Income Statement [Abstract]	'	'
NET REVENUE	$48,207	$44,480
COST OF GOODS SOLD	32,942	30,040
GROSS PROFIT	15,265	14,440
OPERATING EXPENSES:	'	'
Research and development	9,476	8,713
Sales and marketing	3,294	3,108
General and administrative	2,898	3,137
Total operating expenses	15,668	14,958
OPERATING LOSS	-403	-518
OTHER INCOME:	'	'
Interest income (expense), net	-18	-7
Other Income, net	10	-1
Total other income (expense), net	-8	-8
LOSS BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS	-411	-526
INCOME TAX EXPENSE	1	34
LOSS FROM CONTINUING OPERATIONS	-412	-560
LOSS FROM DISCONTINUED OPERATIONS	0	-421
NET LOSS	-412	-981
NET INCOME (LOSS) PER SHARE:	'	'
Basic and diluted earnings (loss) per share from continuing operations	($0.01)	($0.01)
Loss per share from discontinued operations	$0	($0.01)
Basic and diluted (in usd per share)	($0.01)	($0.02)
WEIGHTED AVERAGE SHARES USED TO CALCULATE NET INCOME (LOSS) PER SHARE:	'	'
Weighted Average Number of Shares Outstanding, Basic	59,678	58,001
Weighted Average Number of Shares Outstanding, Diluted	59,678	58,001
COMPREHENSIVE LOSS:	'	'
NET LOSS	-412	-981
Foreign currency translation adjustment	-30	144
Comprehensive loss	($442)	($837)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements Of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash Flows From Operating Activities:	'	'
NET LOSS	($412)	($981)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:	'	'
Depreciation and amortization	959	709
Stock-based compensation expense	578	668
Changes in operating assets and liabilities:	'	'
Accounts receivable	9,240	2,521
Inventories	-1,122	91
Prepaid expenses and other assets	1,238	-266
Accounts payable	-7,112	456
Accrued compensation and other expenses	-2,809	-3,074
Deferred revenue	799	682
Other long-term liabilities	-252	142
Net cash provided by operating activities	1,107	948
Cash Flows From Investing Activities:	'	'
Purchases of property and equipment	-995	-1,195
Net cash used in investing activities	-995	-1,195
Cash Flows From Financing Activities:	'	'
Payments on bank borrowings	-2,000	-2,800
Proceeds from bank borrowings	0	2,800
Shares withheld for tax purposes	-72	-114
Proceeds from sale of stock to employees	1,854	387
Net cash provided by (used in) financing activities	-218	273
Effect of Exchange Rate Changes on Cash and Cash Equivalents	22	-44
Net Increase (Decrease) in Cash and Cash Equivalents	-84	-18
Cash and Cash Equivalents, beginning of period	40,406	40,315
Cash and Cash Equivalents, end of period	40,322	40,297
Supplemental Disclosures of Non-Cash Investing and Financing Activities:	'	'
Property and equipment acquired but not yet paid	995	489
Supplemental Cash Flow Data:	'	'
Cash paid for income taxes	$195	$17

Summary_Of_Significant_Account

Summary Of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
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, 2013. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for future quarters or the year ending December 31, 2014.
	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 (see Note 5), the valuation and recognition of stock-based compensation expense, and the valuation of long-lived 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 are integrated with our OEM customers' industry standard hardware and which become essential to 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. 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.
	We exclude from revenues taxes collected from customers on behalf of governmental authorities.
	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 fair value 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 elements related to our products is available. We have established VSOE for the fair value of our software licenses and support services as measured by the prices paid by our customers when the licenses and 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 (PCS) for which we have not established VSOE of fair value of any of the elements. Under specific guidance for recognizing software revenue, we defer all revenue related to each deliverable until the only undelivered element is PCS. We then begin recognizing revenue ratably over the PCS period.
	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 costs are then recognized ratably over the contractual PCS support periods as a component of Costs of Goods Sold.
	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 elements that relate to the hardware product’s essential software, and undelivered non-software services (all non-software related elements), we allocate the transaction price 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 the transaction price 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 of fair value 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 each of the deliverables would be if they were sold regularly on a standalone basis.
	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 customers do not contain any minimum purchase commitments, do not obligate them to purchase their storage solutions exclusively from us and may be terminated at any time upon notice.
	Net revenue consists of all product and services revenue. Net revenue by major customer is as follows (as a percentage of total net revenue):
		Three Months Ended
		March 31,
		2013			2014
	HP	63	%		49	%
	Tektronix	12	%		15	%
	Other customers less than 10%	25	%		36	%
	Total	100	%		100	%
	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 and services 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, 2013 and March 31, 2014, the carrying value of cash and cash equivalents approximates fair value due to the short period of time to maturity.
	As of March 31, 2014, $3.3 million of the $40.3 million of cash and cash equivalents was held by our foreign subsidiaries. We currently intend to repatriate approximately $2.0 million of our cash and cash equivalents held by our Netherlands subsidiary during 2014. We obtained a favorable ruling from one of the foreign jurisdictions and will not be charged foreign taxes on the repatriation and we expect net operating loss carryforwards and foreign tax credits to offset any remaining tax liability. We anticipate that future foreign earnings will be deemed to be permanently reinvested, although we could elect to repatriate funds held in one or more foreign jurisdictions. If applicable, withholding taxes could reduce the net amount repatriated, and we could be required to accrue and remit applicable U.S. income taxes to the extent a tax liability results after the utilization of net operating loss carryforwards and available tax credits.
	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):
		March 31,				March 31,
		2013				2014
	Balance, beginning of the year	$	240			$	23
	Additions to allowance	—				—
	Write-offs	—				—
	Recoveries	(9		)		—
	Balance, quarter ended	$	231			$	23
	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. There were no impairment charges for the periods ended March 31, 2013 or 2014.
	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.

Earnings_Per_Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2014
Earnings Per Share [Abstract]	'
Earnings Per Share	'
	Earnings Per Share
	Basic earnings per share, including 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 earnings per share, including 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 months ended March 31, 2013 or March 31, 2014 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 months ended March 31, 2013 and 2014 (in thousands, except per share data):
		Three Months Ended
		March 31,
		2013				2014
	Loss from continuing operations	$	(560	)		$	(412	)
	Basic weighted-average common shares outstanding	58,001				59,678
	Assumed exercise of dilutive stock options, warrants and restricted stock	—				—
	Diluted weighted-average common shares outstanding	58,001				59,678
	Loss from continuing operations:
	Basic loss per share	$	(0.01	)		$	(0.01	)
	Diluted loss per share	$	(0.01	)		$	(0.01	)
	Outstanding equity awards not included in the calculation of diluted net loss per share because their effect was anti-dilutive were as follows:
		Three Months Ended
		March 31,
		2013							2014
		Number of			Range of				Number of	Range of
		Potential			Exercise Prices				Potential	Exercise Prices
		Shares							Shares
	Stock options	9,159,312			$0.47 - $16.36				10,923,538	$0.47 - $7.84
	Unvested stock awards	508,221			$	—			43,220	—
	Warrants	1,602,489			$	2.4			1,602,489	2.4
	Shares issued
	Common stock activity during the period is as follows (in thousands).
		Three Months Ended
		March 31, 2013			March 31, 2014
	Shares issued:
	Options exercised	4			632
	Shares purchased under stock plan	458			198
	Share decreases:
	Shares repurchased for tax purposes	(87	)		(15	)
	Restricted stock awards canceled	(23	)		—

Discontinued_Operations

Discontinued Operations	3 Months Ended
	Mar. 31, 2014
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 months ended March 31, 2013 and 2014 (in thousands):
		Three Months Ended
		March 31,
		2013			2014
	Net revenue	$	20		$	—
	Cost of goods sold	131			—
	Gross loss	(111		)	—
	Operating expenses:
	Research and development	—			—
	Sales and marketing	—			—
	General and administrative	320			—
	Restructuring charge	(10		)	—
	Total operating expenses	310			—
	Operating loss	(421		)	—
	Other expense, net	—			—
	Loss from discontinued operations	$	(421	)	$	—
	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	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Inventories	'
	Inventories
	The components of inventories consist of the following (in thousands):
		December 31,		March 31,
		2013		2014
	Purchased parts and materials	$	2,911	$	4,367
	Finished goods	3,628		3,297
	Total inventory	$	6,539	$	7,664
	Inventories are comprised of finished goods and purchased parts and assemblies, which include direct labor and overhead, and are valued at the lower of cost (first-in, first-out method) or market value. The valuation of 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 customers may require us to purchase and stock material amounts of inventory to ensure availability to meet forecasts, which increases our risk of excess quantities. Because our markets are volatile and are subject to technological risks, price changes and inventory reduction programs by our customers, and because we are required to make last-time buys of certain components on occasion, there is a risk that we will forecast incorrectly and produce 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 adverse effect on our gross margin and our results of operations. Any write downs to inventory due to the existence of excess quantities, physical obsolescence, changes in pricing, damage, or other causes result in 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.

Product_Warranties

Product Warranties	3 Months Ended
	Mar. 31, 2014
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
		March 31,
		2013			2014
	Balance, beginning of period	$	4,455		$	2,965
	Charges to operations	118			414
	Deductions for payments made	(1,021		)	(175		)
	Changes in estimates	(809		)	40
	Balance, end of period	$	2,743		$	3,244
	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 in estimate. In addition, the decrease in deductions for payments made during the three months ended March 31, 2013 as compared to the three months ended March 31, 2014 relates to price concessions and rebates based on sales volumes to a material customer related to a quality issue associated with certain power supply devices.

Credit_Facilities

Credit Facilities	3 Months Ended
	Mar. 31, 2014
Line of Credit Facility [Abstract]	'
Credit Facilities	'
	Credit Facilities
	We maintain a credit facility with Silicon Valley Bank for cash advances and letters of credit 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 85 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 Silicon Valley Bank's prime rate, which was 4.0% as of March 31, 2014 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. As of March 31, 2014, the Company had significant coverage in regard to this covenant. 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 the bank's prime rate plus 1% and additional restrictions will apply. The maturity date of the credit facility is July 21, 2015.
	As of March 31, 2014, the Company had zero outstanding under the Silicon Valley Bank line of credit. There was $30.0 million available for borrowing under the agreement as of March 31, 2014. We are currently in compliance with all covenant requirements.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2014
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)
		2013
		(in thousands)
	Cash and cash equivalents	$	40,406	$	40,406	$	—	$	—	$	—
				Fair Value Measurements Using
	Description	March 31,		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
		2014
		(in thousands)
	Cash and cash equivalents	$	40,322	$	40,322	$	—	$	—	$	—
	Fair Value of Financial Instruments
	The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, accounts payable and credit facility borrowings. The carrying values on our balance sheet of our cash and cash equivalents, accounts receivable, and accounts payable approximate their fair values due to the short maturities. The following disclosures relate to financial instruments for which the ending balances at December 31, 2013 and March 31, 2014, are not carried at fair value in their entirety on the Unaudited Condensed Consolidated Balance Sheet. This table presents the carrying value and fair value, by fair value hierarchy, of our financial instruments, excluding cash and cash equivalents, accounts receivable and accounts payable at December 31, 2013 (in thousands).
				Fair Value Measurements Using
	Description	December 31, 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	$	2,000	$	—	$	2,000	$	—	$	—
	The Company had no outstanding borrowings on the credit facility as of March 31, 2014.
	The fair value of the Company's debt was estimated using a market approach based on the amount at the measurement date that the Company would receive to enter into the identical liability, since quoted prices for the Company's debt instrument are not available.

Commitments_And_Contingencies

Commitments And Contingencies	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments And Contingencies	'
	Commitments and Contingencies
	We are not party to any significant legal proceedings, but are involved in certain claims from time to time arising in the ordinary course of business involving our products, suppliers, and/or customers. Although adverse decisions or settlements of such claims may occur, we believe that the final disposition of such matters will not have a material adverse effect on our financial position or results of operations.
	Cumulative Translation Adjustment
	If we liquidate any of our foreign subsidiaries, our cumulative translation adjustment recorded in Other Comprehensive Income would be required to be reclassified into earnings. The Company currently anticipates liquidation of its Netherlands operating unit during 2014. The Netherlands operating unit currently has no active operations. Cumulative translation losses of approximately $2.7 million related to the Netherlands operating unit would be reclassified from other comprehensive loss to operating loss.

Segment_Information

Segment Information	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
Segment Information	'
	Segment Information
	Prior to the first quarter of 2014, our Chief Operating Decision Maker, or CODM, who is our President and Chief Executive Officer, managed our business as one reportable operating segment that included the design, manufacture and marketing of a range of software and hardware storage systems for the entry and midrange storage markets. Beginning in the first quarter of 2014, due to the growth and significance of our vertical markets, our CODM is managing our business in three reportable operating segments. Hence, we changed our reporting segments accordingly. Therefore, beginning with the first quarter of 2014, we have reported in the following three segments: Server OEM, Vertical Markets, and Corporate.
	The Server OEM segment consists primarily of large Original Equipment Manufacturers who purchase products from us to sell along with their server products. Our products are typically sold in server led sales into their end-user customers' corporate information technology infrastructure. Major Server OEM customers include HP, Lenovo, Stratus, Dell, and AMD.
	The Vertical Markets segment consists of strategically selected Vertical Markets, that have a propensity for high data growth. Some of our target Vertical Markets include Media & Entertainment, Telecommunications Infrastructure, Oil and Gas, Big Data Analytics and Digital Imaging, among others. These customers typically embed their products into their customer solutions which quite often generate revenue for their end-user customers. We sell to these customers through both Vertical Markets OEM partners or embedded solutions integrators, as well as through channel partners. Major Vertical Markets customers include Teradata, CGG, Motorola, Tektronix, Samsung, Concurrent, Autodesk, and Nokia Siemens.
	The Corporate segment consists primarily of “platform costs” that support both the Server OEM and Vertical Markets segments.
	Segment information for all periods presented has been reclassified to conform to fiscal 2014 presentation.
	Net revenues by segment are as follows (in thousands):
		Three Months Ended March 31,
		2013			2014
	Net revenue:
	Server OEM	$	30,383		$	25,854
	Vertical Markets	14,097			22,353
	Corporate	$	—		$	—
	Consolidated net revenue	$	44,480		$	48,207
	Operating income (loss) is as follows (in thousands):
		Three Months Ended March 31,
		2013			2014
	Operating income (loss):
	Server OEM	$	7,848		$	5,122
	Vertical Markets	4,077			7,407
	Corporate	(12,443		)	(12,932		)
	Consolidated operating income (loss)	$	(518	)	$	(403	)
	The segments use many of the same assets. For internal reporting purposes, we do not allocate assets by segment and therefore asset, depreciation and amortization, or capital expenditure by segment information is not provided to our CODM.

Summary_Of_Significant_Account1

Summary Of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2014
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, 2013. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for future quarters or the year ending December 31, 2014.
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 (see Note 5), the valuation and recognition of stock-based compensation expense, and the valuation of long-lived 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 are integrated with our OEM customers' industry standard hardware and which become essential to 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. 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.
	We exclude from revenues taxes collected from customers on behalf of governmental authorities.
	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 fair value 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 elements related to our products is available. We have established VSOE for the fair value of our software licenses and support services as measured by the prices paid by our customers when the licenses and 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 (PCS) for which we have not established VSOE of fair value of any of the elements. Under specific guidance for recognizing software revenue, we defer all revenue related to each deliverable until the only undelivered element is PCS. We then begin recognizing revenue ratably over the PCS period.
	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 costs are then recognized ratably over the contractual PCS support periods as a component of Costs of Goods Sold.
	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 elements that relate to the hardware product’s essential software, and undelivered non-software services (all non-software related elements), we allocate the transaction price 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 the transaction price 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 of fair value 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 each of the deliverables would be if they were sold regularly on a standalone basis.
	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 customers do not contain any minimum purchase commitments, do not obligate them to purchase their storage solutions exclusively from us and may be terminated at any time upon notice.
	Net revenue consists of all product and services revenue. Net revenue by major customer is as follows (as a percentage of total net revenue):
		Three Months Ended
		March 31,
		2013			2014
	HP	63	%		49	%
	Tektronix	12	%		15	%
	Other customers less than 10%	25	%		36	%
	Total	100	%		100	%
	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 and services 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, 2013 and March 31, 2014, the carrying value of cash and cash equivalents approximates fair value due to the short period of time to maturity.
	As of March 31, 2014, $3.3 million of the $40.3 million of cash and cash equivalents was held by our foreign subsidiaries. We currently intend to repatriate approximately $2.0 million of our cash and cash equivalents held by our Netherlands subsidiary during 2014. We obtained a favorable ruling from one of the foreign jurisdictions and will not be charged foreign taxes on the repatriation and we expect net operating loss carryforwards and foreign tax credits to offset any remaining tax liability. We anticipate that future foreign earnings will be deemed to be permanently reinvested, although we could elect to repatriate funds held in one or more foreign jurisdictions. If applicable, withholding taxes could reduce the net amount repatriated, and we could be required to accrue and remit applicable U.S. income taxes to the extent a tax liability results after the utilization of net operating loss carryforwards and available tax credits.
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.
	Balance sheet details are as follows, (in thousands):
		March 31,				March 31,
		2013				2014
	Balance, beginning of the year	$	240			$	23
	Additions to allowance	—				—
	Write-offs	—				—
	Recoveries	(9		)		—
	Balance, quarter ended	$	231			$	23
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. There were no impairment charges for the periods ended March 31, 2013 or 2014.
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.

Summary_Of_Significant_Account2

Summary Of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2014
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
		March 31,
		2013			2014
	HP	63	%		49	%
	Tektronix	12	%		15	%
	Other customers less than 10%	25	%		36	%
	Total	100	%		100	%
Allowance for doubtful accounts	'
	Balance sheet details are as follows, (in thousands):
		March 31,				March 31,
		2013				2014
	Balance, beginning of the year	$	240			$	23
	Additions to allowance	—				—
	Write-offs	—				—
	Recoveries	(9		)		—
	Balance, quarter ended	$	231			$	23

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2014										Mar. 31, 2013
Earnings Per Share [Abstract]	'										'
Schedule of Weighted Average Number of Shares	'										'
	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 months ended March 31, 2013 and 2014 (in thousands, except per share data):
		Three Months Ended
		March 31,
		2013				2014
	Loss from continuing operations	$	(560	)		$	(412	)
	Basic weighted-average common shares outstanding	58,001				59,678
	Assumed exercise of dilutive stock options, warrants and restricted stock	—				—
	Diluted weighted-average common shares outstanding	58,001				59,678
	Loss from continuing operations:
	Basic loss per share	$	(0.01	)		$	(0.01	)
	Diluted loss per share	$	(0.01	)		$	(0.01	)
Outstanding equity awards not included in calculation of diluted net loss per share	'										'
	Outstanding equity awards not included in the calculation of diluted net loss per share because their effect was anti-dilutive were as follows:
		Three Months Ended
		March 31,
		2013							2014
		Number of			Range of				Number of	Range of
		Potential			Exercise Prices				Potential	Exercise Prices
		Shares							Shares
	Stock options	9,159,312			$0.47 - $16.36				10,923,538	$0.47 - $7.84
	Unvested stock awards	508,221			$	—			43,220	—
	Warrants	1,602,489			$	2.4			1,602,489	2.4
Common stock activity during the period	'										'
											Common stock activity during the period is as follows (in thousands).
												Three Months Ended
												March 31, 2013		March 31, 2014
											Shares issued:
											Options exercised	4		632
											Shares purchased under stock plan	458		198
											Share decreases:
											Shares repurchased for tax purposes	(87	)	(15	)
											Restricted stock awards canceled	(23	)	—

Discontinued_Operations_Tables

Discontinued Operations (Tables)	3 Months Ended
	Mar. 31, 2014
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 months ended March 31, 2013 and 2014 (in thousands):
		Three Months Ended
		March 31,
		2013			2014
	Net revenue	$	20		$	—
	Cost of goods sold	131			—
	Gross loss	(111		)	—
	Operating expenses:
	Research and development	—			—
	Sales and marketing	—			—
	General and administrative	320			—
	Restructuring charge	(10		)	—
	Total operating expenses	310			—
	Operating loss	(421		)	—
	Other expense, net	—			—
	Loss from discontinued operations	$	(421	)	$	—

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Mar. 31, 2014
Inventory Disclosure [Abstract]	'
Components of inventory	'
	The components of inventories consist of the following (in thousands):
		December 31,		March 31,
		2013		2014
	Purchased parts and materials	$	2,911	$	4,367
	Finished goods	3,628		3,297
	Total inventory	$	6,539	$	7,664

Product_Warranties_Tables

Product Warranties (Tables)	3 Months Ended
	Mar. 31, 2014
Product Warranties Disclosures [Abstract]	'
Warranty Accrual and Cost Activity	'
	Our warranty accrual and cost activity is as follows (in thousands):
		Three Months Ended
		March 31,
		2013			2014
	Balance, beginning of period	$	4,455		$	2,965
	Charges to operations	118			414
	Deductions for payments made	(1,021		)	(175		)
	Changes in estimates	(809		)	40
	Balance, end of period	$	2,743		$	3,244

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2014
Fair Value Disclosures [Abstract]	'
Assets Measured at Fair Value on a Recurring Basis	'
	This table presents the carrying value and fair value, by fair value hierarchy, of our financial instruments, excluding cash and cash equivalents, accounts receivable and accounts payable at December 31, 2013 (in thousands).
				Fair Value Measurements Using
	Description	December 31, 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	$	2,000	$	—	$	2,000	$	—	$	—
	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)
		2013
		(in thousands)
	Cash and cash equivalents	$	40,406	$	40,406	$	—	$	—	$	—
				Fair Value Measurements Using
	Description	March 31,		Quoted Prices for Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total (Losses)
		2014
		(in thousands)
	Cash and cash equivalents	$	40,322	$	40,322	$	—	$	—	$	—

Segment_Information_Tables

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2014
Segment Reporting [Abstract]	'
Segment Reporting Information by Segment	'
	Net revenues by segment are as follows (in thousands):
		Three Months Ended March 31,
		2013			2014
	Net revenue:
	Server OEM	$	30,383		$	25,854
	Vertical Markets	14,097			22,353
	Corporate	$	—		$	—
	Consolidated net revenue	$	44,480		$	48,207
	Operating income (loss) is as follows (in thousands):
		Three Months Ended March 31,
		2013			2014
	Operating income (loss):
	Server OEM	$	7,848		$	5,122
	Vertical Markets	4,077			7,407
	Corporate	(12,443		)	(12,932		)
	Consolidated operating income (loss)	$	(518	)	$	(403	)

Summary_Of_Significant_Account3

Summary Of Significant Accounting Policies (Concentration of Customers and Suppliers) (Details)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
	customer
Major customers	'	'
Number of major customers	2	'
Concentration risk, percentage of total net revenues	100.00%	100.00%
HP | Common Stock [Member]	'	'
Major customers	'	'
Warrants to purchase shares of our common stock	1,602,489	'
Warrants, exercise price	2.4	'
Revenue [Member] | Customer Concentration Risk [Member] | HP	'	'
Major customers	'	'
Concentration risk, percentage of total net revenues	49.00%	63.00%
Revenue [Member] | Customer Concentration Risk [Member] | Tektronix	'	'
Major customers	'	'
Concentration risk, percentage of total net revenues	15.00%	12.00%
Revenue [Member] | Customer Concentration Risk [Member] | Other customers less than 10%	'	'
Major customers	'	'
Concentration risk, percentage of total net revenues	36.00%	25.00%

Summary_Of_Significant_Account4

Summary Of Significant Accounting Policies (Allowance for Doubtful Accounts) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Allowance for Doubtful Accounts Receivable [Roll Forward]	'	'
Balance, beginning of the year	$23	$240
Additions to allowance	0	0
Write-offs	0	0
Recoveries	0	9
Balance, quarter ended	$23	$231

Summary_Of_Significant_Account5

Summary Of Significant Accounting Policies (Revenue Recognition) (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Deferred Revenue Arrangement [Line Items]	'	'
Net out-of-period impact	$15,265	$14,440
NET REVENUE	48,207	44,480
Cost of goods sold	$32,942	$30,040
Minimum [Member]	'	'
Deferred Revenue Arrangement [Line Items]	'	'
Product maintenance contract term	'12 months	'
Maximum [Member]	'	'
Deferred Revenue Arrangement [Line Items]	'	'
Product maintenance contract term	'36 months	'
Net Revenue Derived From Services [Member]	'	'
Deferred Revenue Arrangement [Line Items]	'	'
Maximum percentage of total revenue	10.00%	10.00%

Summary_Of_Significant_Account6

Summary Of Significant Accounting Policies Cash and cash equivalents (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Cash and cash equivalents	$40,322,000	$40,406,000	$40,297,000	$40,315,000
Earnings expected to be repatriated during fiscal year	2,100,000	'	'	'
Foreign Subsidiaries [Member]	'	'	'	'
Cash and cash equivalents	$3,300,000	'	'	'

Earnings_Per_Share_Calculation

Earnings Per Share (Calculation of basic and diluted EPS) (Details) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Earnings Per Share [Abstract]	'	'
Income (Loss) from Continuing Operations Attributable to Parent	($412)	($560)
Weighted Average Number of Shares Outstanding, Basic	59,678	58,001
Incremental Common Shares Attributable to Share-based Payment Arrangements	0	0
Weighted Average Number of Shares Outstanding, Diluted	59,678	58,001
Earnings Per Share, Basic	($0.01)	($0.01)
Earnings Per Share, Diluted	($0.01)	($0.01)

Earnings_Per_Share_Details

Earnings Per Share (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Outstanding equity awards not included in the calculation of diluted net loss per share:	'	'
Shares issued: Options exercised	632,000	4,000
Share decreases: Shares repurchased for tax purposes	15,000	87,000
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	10,923,538	9,159,312
Range of exercise prices, lower limit	0.47	0.47
Range of exercise prices, upper limit	7.84	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	43,220	508,221
Share decreases: Restricted stock awards canceled	0	23,000
Warrant	'	'
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
Warrants, exercise price	2.4	2.4
2000ESPP	'	'
Outstanding equity awards not included in the calculation of diluted net loss per share:	'	'
Shares issued: Shares purchased under stock plan	198,000	458,000

Discontinued_Operations_Detail

Discontinued Operations (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Discontinued Operations [Line Items]	'	'
Tangible Asset Impairment Charges	'	$200,000
Impairment of Intangible Assets (Excluding Goodwill)	'	1,600,000
Operating expenses:	'	'
Loss from discontinued operations	0	-421,000
AssuredUVS [Member]	'	'
Loss from discontinued operations	'	'
Net revenue	0	20,000
Cost of goods sold	0	131,000
Gross profit	0	-111,000
Operating expenses:	'	'
Research and development	0	0
Sales and marketing	0	0
General and administrative	0	320,000
Restructuring charge	0	-10,000
Total operating expenses	0	310,000
Operating loss	0	-421,000
Other income (expense), net	0	0
Loss from discontinued operations	$0	($421,000)

Inventories_Details

Inventories (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]	'	'
Purchased parts and materials	$4,367	$2,911
Finished goods	3,297	3,628
Total inventory	$7,664	$6,539

Product_Warranties_Details

Product Warranties (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Product Warranties Disclosures [Abstract]	'	'
Maximum product warranty term	'3 years	'
Movement in Standard Product Warranty Accrual [Roll Forward]	'	'
Balance, beginning of period	$2,965	$4,455
Charges to operations	414	118
Deductions for costs incurred	-175	-1,021
Changes in estimates	40	-809
Balance, end of period	$3,244	$2,743

Credit_Facilities_Details

Credit Facilities (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Credit Facility [Line Items]	'	'
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	'
Letters of credit outstanding	$0	$2,000,000
Covenant Compliance	'. We are currently in compliance with all covenant requirements.	'
Silicon Valley Bank	'	'
Credit Facility [Line Items]	'	'
Letters of credit outstanding	0	'
Remaining borrowing capacity	30,000,000	'
Credit facility | Silicon Valley Bank	'	'
Credit Facility [Line Items]	'	'
Debt Instrument, Interest Rate, Effective Percentage	4.00%	'
Borrowing capacity	30,000,000	'
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	0	'
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	85.00%	'
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 $)

Mar. 31, 2014

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Dec. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Mar. 31, 2014

Dec. 31, 2013

Fair Value

Fair Value

Fair Value

Reported Value

Recurring

Recurring

Recurring

Recurring

Recurring

Recurring

Recurring

Recurring

Recurring

Recurring

Level 1

Level 2

Level 3

Fair Value

Fair Value

Fair Value

Fair Value

Fair Value

Fair Value

Reported Value

Reported Value

Level 1

Level 1

Level 2

Level 2

Level 3

Level 3

Fair Value, Assets and Liabilities Measured on Recurring Basis

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Cash and cash equivalents

'

'

'

'

'

'

'

'

$40,322,000

$40,406,000

$0

$0

$0

$0

$40,322,000

$40,406,000

Assets, Fair Value Adjustment

'

'

'

'

'

'

0

0

'

'

'

'

'

'

'

'

Credit facility borrowings

'

'

0

2,000,000

0

2,000,000

'

'

'

'

'

'

'

'

'

'

Letters of credit outstanding

$0

$2,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Segment_Information_Details

Segment Information (Details)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
	segment	segment
Segment Reporting [Abstract]	'	'
Number of reportable segments	3	1

Segment_Information_Schedule_o

Segment Information Schedule of Net Revenues by Segment (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]	'	'
Net Revenue	$48,207	$44,480
Server OEMs [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Net Revenue	25,854	30,383
Vertical Markets [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Net Revenue	22,353	14,097
Corporate Segment [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Net Revenue	$0	$0

Segment_Information_Schedule_o1

Segment Information Schedule of Operating Income (Loss) by Segment (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Segment Reporting Information [Line Items]	'	'
Operating Income (Loss)	($403)	($518)
Server OEMs [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Operating Income (Loss)	5,122	7,848
Vertical Markets [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Operating Income (Loss)	7,407	4,077
Corporate Segment [Member]	'	'
Segment Reporting Information [Line Items]	'	'
Operating Income (Loss)	($12,932)	($12,443)