Dot Hill Systems (HILL) 10-Q 8 May 15 2015 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2015	Apr. 30, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	DOT HILL SYSTEMS CORP
Entity Central Index Key	1042783
Current Fiscal Year End Date	-28
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	FALSE
Entity Common Stock, Shares Outstanding		61,217,348

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
ASSETS
Cash and cash equivalents	$46,281	$42,492
Accounts receivable, net	42,180	43,328
Inventories	9,452	11,342
Prepaid expenses and other assets	7,660	11,126
Total current assets	105,573	108,288
Property and equipment, net	9,112	8,764
Intangible assets	3,332	2,680
Other assets	288	500
Total assets	118,305	120,232
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	30,829	37,421
Accrued compensation	3,260	4,015
Accrued expenses	9,594	8,039
Deferred revenue	4,692	5,319
Total current liabilities	48,375	54,794
Other long-term liabilities	2,484	2,908
Total liabilities	50,859	57,702
Commitments and Contingencies (Note 8)
Stockholders' Equity:
Preferred stock, $0.001 par value, 10,000 shares authorized, no shares issued or outstanding at December 31, 2014 and March 31, 2015	0	0
Common stock, $0.001 par value, 100,000 shares authorized, 60,777 and 61,121 shares issued and outstanding at December 31, 2014 and March 31, 2015, respectively	61	61
Additional paid-in capital	337,879	336,827
Accumulated other comprehensive loss	-3,159	-3,152
Accumulated deficit	-267,335	-271,206
Total stockholders' equity	67,446	62,530
Total liabilities and stockholders' equity	$118,305	$120,232

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
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	61,121,000	60,777,000
Common stock, shares outstanding	61,121,000	60,777,000

Condensed_Consolidated_Stateme

Condensed Consolidated Statements Of Comprehensive Loss (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
NET REVENUE	$61,121	$48,207
COST OF GOODS SOLD	40,091	32,942
GROSS PROFIT	21,030	15,265
OPERATING EXPENSES:
Research and development	10,119	9,476
Sales and marketing	3,804	3,294
General and administrative	3,212	2,898
Total operating expenses	17,135	15,668
OPERATING INCOME (LOSS)	3,895	-403
OTHER INCOME (EXPENSE):
Interest income (expense), net	-14	-18
Other Income, net	0	10
Total other income (expense), net	-14	-8
INCOME (LOSS) BEFORE INCOME TAXES	3,881	-411
INCOME TAX EXPENSE	10	1
NET INCOME (LOSS)	3,871	-412
NET INCOME (LOSS) PER SHARE:
Basic and diluted (in usd per share)	$0.06	($0.01)
WEIGHTED AVERAGE SHARES USED TO CALCULATE NET INCOME (LOSS) PER SHARE:
Weighted Average Number of Shares Outstanding, Basic	60,760	59,678
Weighted Average Number of Shares Outstanding, Diluted	64,816	59,678
COMPREHENSIVE LOSS:
NET INCOME (LOSS)	3,871	-412
Foreign currency translation adjustment	-7	-30
Comprehensive loss	$3,864	($442)

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements Of Cash Flows (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash Flows From Operating Activities:
NET INCOME (LOSS)	$3,871	($412)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	1,153	959
Share-based compensation expense	880	578
Changes in operating assets and liabilities:
Accounts receivable	1,213	9,240
Inventories	1,890	-1,122
Prepaid expenses and other assets	3,680	1,238
Accounts payable	-5,890	-7,112
Accrued compensation and other expenses	725	-2,809
Deferred revenue	-628	799
Other long-term liabilities	-425	-252
Net cash provided by operating activities	6,469	1,107
Cash Flows From Investing Activities:
Purchases of property and equipment	-1,517	-995
Purchases of intangible assets	-1,342	0
Net cash used in investing activities	-2,859	-995
Cash Flows From Financing Activities:
Payments on bank borrowings	0	-2,000
Shares withheld for tax purposes	0	-72
Proceeds from sale of stock to employees	172	1,854
Net cash provided by (used in) financing activities	172	-218
Effect of Exchange Rate Changes on Cash and Cash Equivalents	7	22
Net Increase (Decrease) in Cash and Cash Equivalents	3,789	-84
Cash and Cash Equivalents, beginning of period	42,492	40,406
Cash and Cash Equivalents, end of period	46,281	40,322
Supplemental Disclosures of Non-Cash Investing and Financing Activities:
Capital expenditures incurred but not yet paid	461	995
Supplemental Cash Flow Data:
Cash paid for income taxes	$98	$195

Summary_Of_Significant_Account

Summary Of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
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 and Form 10-K/A for the year ended December 31, 2014. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for future quarters or the year ending December 31, 2015.
	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 (refer to Note 3, Inventories) and recurring and specific issue warranty obligations (refer to Note 5, Product Warranties). In addition, we have other accounting policies that involve estimates such as the determination of useful lives of long-lived assets, the valuation of long-lived assets, accruals for restructuring, capitalization of software development costs, contingent liabilities and income taxes, including the valuation allowance for deferred tax assets, and recognition of share-based compensation expense. 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 original equipment manufacturers, or 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 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 contractual return rights, 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. Software revenue represents less than 5% of our net revenue for all periods presented.
	Specific long-term software contracts may contain multiple deliverables including software licenses, services, training and post-contract support, or 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 relates to 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 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 taken legal title of our product from the warehouse to incorporate into its end products.
	Research and Development and Capitalized Software Development Costs
	Research and development costs are expensed as incurred. In conjunction with the development of our products, we incur certain software development costs. For the majority of our software development projects, no costs have been capitalized because the period between achieving technological feasibility and completion of such software is relatively short and software development costs qualifying for capitalization have been insignificant. On a specific software project under development, it was determined that the period between achieving technological feasibility and completion of the software is not relatively short and software development costs qualifying for capitalization will be significant. For this project, since technological feasibility has been established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. We have determined that technological feasibility for our software products is reached after all high-risk development issues have been resolved through coding and testing. The amortization of these costs will be included in cost of revenue over the estimated life of the products. Refer to Note 4, Intangible Assets.
	Contingent Liabilities
	We are involved in certain claims from time to time arising in the ordinary course of business involving our products, suppliers, and/or customers. We may incur settlements, fines, penalties or judgments in connection with some of these matters. While we may be unable to estimate the ultimate dollar amount of exposure or loss in connection with these matters, we make accruals as warranted. The amounts we accrue could vary substantially from amounts we pay due to several factors including the following: possible third-party contributions, the inherent uncertainties of the estimation process, and the uncertainties involved in litigation. We believe that we have adequately provided in our consolidated financial statements for the impact of these contingencies. We also believe that the outcomes will not materially affect our results of operations, our financial position or our cash flows, except as disclosed. Refer to Note 8, Commitments and Contingencies.
	Concentration of Customers and Suppliers
	A majority of our net revenue is derived from a limited number of customers. For the three months ended March 31, 2014, we had two customers, Customer A and Customer C, that accounted for 10% or more of our total net revenue. For the three months ended March 31, 2015, we had three customers, Customer A, Customer C and Customer D, that accounted for 10% or more of our total net revenue. 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, or a customer who has accounted for 10% or more of our total net revenue in the current quarter and/or any quarter in the prior fiscal year, is as follows (as a percentage of total net revenue):
		Three Months Ended
		March 31,
		2014		2015
	Customer A	49	%	35	%
	Customer B	1	%	7	%
	Customer C	15	%	18	%
	Customer D	7	%	17	%
	If our relationship with our major customers 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 our major customers or our other customers will expand or not otherwise be disrupted.
	We currently rely on one contract manufacturing partner, Foxconn Technology Group, or Foxconn, to produce substantially all of our products. As a result, should Foxconn not produce and deliver inventory for us to sell on a timely basis, operating results may be adversely impacted. In November 2011, we amended our agreement with Foxconn to extend the manufacturing agreement for a period of three years. In November 2014, we extended the agreement to March 11, 2015, and in March 2015, we extended the agreement to September 1, 2015. We are currently in negotiations to further extend our contract. If the agreement is not further extended, pursuant to terms in the existing agreement, we can continue to operate with Foxconn for a period of six months following the expiration of the agreement, as the Company may issue purchase orders and Foxconn may accept purchase orders under the terms and conditions of the existing agreement.
	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. At December 31, 2014 and March 31, 2015, the carrying value of cash and cash equivalents approximates fair value due to the short period of time to maturity.
	As of March 31, 2015, $3.0 million of the $46.3 million of cash, cash equivalents and marketable securities was held by our foreign subsidiaries, as compared to $3.0 million of the $42.5 million of cash, cash equivalents and marketable securities held by our foreign subsidiaries as of December 31, 2014. We currently intend to repatriate approximately $2.0 million of our cash and cash equivalents when we close down our Netherlands subsidiary during 2015. We obtained a favorable ruling from the Netherlands and will not be charged foreign taxes on the repatriation and we expect that our net operating loss carryforwards and foreign tax credits will be available to offset any United States tax liability, should one arise.
	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 United States income taxes to the extent a tax liability results after the utilization of net operating loss carryforwards and available tax credits. Refer to Note 8, Commitments and Contingencies, for a discussion of the associated cumulative translation loss.
	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. Allowance for doubtful accounts was $0.1 million at December 31, 2014 and March 31, 2015.
	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 three months ended March 31, 2014 or 2015.
	Recent Accounting Pronouncements
	From time to time, new accounting pronouncements are issued that we adopt as of the specified effective date. We believe that, other than the matter described below, 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 May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), or ASU 2014-09. This update creates modifications to various revenue accounting standards for specialized transactions and industries. ASU 2014-09 is intended to conform revenue accounting principles with a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The updated guidance is effective for public entities for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. Early adoption is not permitted and entities have the choice to apply ASU 2014-09 either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying ASU 2014-09 at the date of initial application and not adjusting comparative information. In April 2015, the FASB tentatively decided to defer for one year the effective date of ASU 2014-09, which will extend the effective date for public entities to annual reporting periods beginning on or after December 15, 2017, and determined that Company's will be permitted to early adopt the standard as of the original effective date of ASU 2014-09. The Company is currently evaluating the requirements of ASU 2014-09 and has not yet determined its impact on the Company's unaudited condensed consolidated financial statements. The Company does not expect to early adopt the standard.
	In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), or ASU 2015-05. This update provides guidance to customers about whether a cloud computing arrangement includes a software license, and if so, to apply the accounting requirements for other intangible assets. If the cloud computing arrangement does not include a software license, ASU 2015-05 indicates that the arrangement should be accounted for as a service contract. The updated guidance is effective for public entities for annual reporting periods beginning on or after December 15, 2015, and interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the requirements of ASU 2015-05 and has not yet determined its impact on the Company's unaudited condensed consolidated financial statements.

Earnings_Per_Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2015
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.
	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, 2014 and 2015 (in thousands, except per share data):
		Three Months Ended
		March 31,
		2014				2015
	Net income (loss)	$	(412	)		$	3,871
	Basic weighted-average common shares outstanding	59,678				60,760
	Assumed exercise of dilutive stock options, warrants and restricted stock	—				4,056
	Diluted weighted-average common shares outstanding	59,678				64,816
	Net income (loss):
	Basic income (loss) per share	$	(0.01	)		$	0.06
	Diluted income (loss) per share	$	(0.01	)		$	0.06
	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
		March 31,
		2014						2015
		Number of			Range of			Number of	Range of
		Potential			Exercise Prices			Potential	Exercise Prices
		Shares						Shares
	Stock options	10,923,538			$0.47 - $7.84			4,401,602	$4.00 - $7.04
	Unvested stock awards	43,220			$	—		336,708	$	—
	Warrants	1,602,489			$	2.4		—	$	—
	Shares issued
	Common stock activity during the period is as follows (in thousands):
		Three Months Ended
		March 31,
		2014			2015
	Shares issued:
	Options exercised	632			62
	Restricted stock awards granted	—			283
	Shares purchased under stock plan	198			—
	Share decreases:
	Shares repurchased for tax purposes	(15	)		(1	)

Inventories

Inventories	3 Months Ended
	Mar. 31, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories
	The components of inventories consist of the following (in thousands):
		December 31,		March 31,
		2014		2015
	Purchased parts and materials	$	2,273	$	2,568
	Finished goods	9,069		6,884
	Total inventory	$	11,342	$	9,452
	Inventories are comprised of finished goods and purchased parts and assemblies, which include costs to purchase assembled units 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. The decrease in inventory from December 31, 2014 to March 31, 2015 is due to lower required levels of inventory for a significant customer maintained at a vendor managed inventory location.

Intangible_Assets

Intangible Assets	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	Intangible Assets
	Identifiable intangible assets are as follows (in thousands):
			31-Dec-14
		Estimated Useful Life	Gross		Accumulated Amortization		Net
	Technology-based intangible assets	Not yet determined	$	2,680	$	—	$	2,680
	Total intangible assets		$	2,680	$	—	$	2,680
			31-Mar-15
		Estimated Useful Life	Gross		Accumulated Amortization		Net
	Technology-based intangible assets	Not yet determined	$	3,332	$	—	$	3,332
	Total intangible assets		$	3,332	$	—	$	3,332
	Technology-based intangible assets consist of software to be sold, leased or otherwise marketed, and includes capitalized software development costs. The estimated useful life and projected date that the intangible assets will be generally available for release to customers is not readily determinable as of December 31, 2014 or March 31, 2015. Intangible assets have not been allocated to reporting segments as they are used across the operating segments.
	There was no amortization of intangible assets for the three months ended March 31, 2014 as there were no technology-based intangible assets as of March 31, 2014, and there was no amortization of intangible assets for the three months ended March 31, 2015 as the intangible assets product was not generally available for release to customers.

Product_Warranties

Product Warranties	3 Months Ended
	Mar. 31, 2015
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, system or firmware without charge generally for a period of approximately 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 typically 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. There can be no assurance that our suppliers will continue to provide such warranties to us in the future or that our warranty obligations to our customers will be covered by corresponding warranties from our suppliers, the absence of which could have a material effect on our financial statements. 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,
		2014			2015
	Balance, beginning of period	$	2,965		$	3,363
	Charges to operations	414			342
	Deductions for payments made	(175		)	(385		)
	Changes in estimates	40			149
	Balance, end of period	$	3,244		$	3,469

Credit_Facilities

Credit Facilities	3 Months Ended
	Mar. 31, 2015
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 $30.0 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, 2015, 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, agreeing that other than in the ordinary course of business, we will not convey, sell, lease, transfer or otherwise dispose of these assets without the prior written consent of Silicon Valley Bank, 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, 2015, the Company had significant coverage in regard to this covenant. The agreement also includes provisions to increase the financing facility by $20.0 million subject to our meeting certain requirements, including $40.0 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 $20.0 million (measured on a rolling three-month basis), the interest rate will increase to the Silicon Valley Bank's prime rate plus 1.0% and additional restrictions will apply. The maturity date of the credit facility is July 21, 2017.
	As of March 31, 2015, the Company had no outstanding borrowings under the Silicon Valley Bank line of credit. There was $30.0 million available for borrowing under the agreement as of March 31, 2015. We are currently in compliance with all covenant requirements.

Fair_Value_Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2015
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)
		2014
		(in thousands)
	Cash and cash equivalents	$	42,492	$	42,492	$	—	$	—	$	—
				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)
		2015
		(in thousands)
	Cash and cash equivalents	$	46,281	$	46,281	$	—	$	—	$	—
	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 Company had no outstanding borrowings on the credit facility as of December 31, 2014 or March 31, 2015, and as such, no fair value estimate was required.

Commitments_And_Contingencies

Commitments And Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	Commitments and Contingencies
	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 2015. 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.
	Legal Proceedings
	We are not party to any significant legal proceedings, except as described below, but are involved in certain legal actions and claims from time to time arising in the ordinary course of business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters will not have a material adverse effect on its financial position or results of operations.
	Crossroads, Inc. - During the quarter ended September 30, 2014, the Company met with Crossroads Inc., or Crossroads, to establish a framework to resolve the dispute regarding the Amended Settlement and License Agreement dated October 2006. On September 19, 2014, the United States District Court for the Western District of Texas partially granted the Company’s motion for partial summary judgment as to Crossroads’ claims concerning royalty payments on product sales to Hewlett Packard, or HP, for the period after the Fall of 2011 and at the same time held that the Company is not entitled to the benefit of a license Crossroads granted to HP for the period prior to fall 2011. In addition, a patent claim construction hearing occurred on October 6-7, 2014 but no claim construction order was issued and no trial date has been set. On February 27, 2015, the Company filed motions to join two inter partes reviews of the validity of the patent that are being conducted by the United States Patent Office and filed a motion to stay the district court litigation pending the entry of final written decisions in the inter partes reviews. No trial date has been set. Based on the United States District Court’s response to the Company’s motion for partial summary judgment and ongoing discussions with Crossroads, it is probable that the Company will resolve this contractual dispute for royalty payments from 2009 to the current period for a total amount in the range of $1.0 million to $3.4 million. As of March 31, 2015, there was a $1.0 million balance accrued, which was charged to general and administrative expense for the year ended December 31, 2014. We are in the early stages of a potential settlement of this matter.  Accordingly, the actual amount of a settlement could be different than the amount accrued or the currently estimated maximum amount and the difference could be material.

Segment_Information

Segment Information	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Segment Information	Segment Information
	Operating segments, as defined in 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.
	The Company's CODM is the President and Chief Executive Officer. The CODM manages the Company's business as three reportable operating segments: Server OEM, Vertical Markets, and Corporate.
	Server OEM - The Server OEM segment consists primarily of large OEMs 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. Server OEM customers include Customer A (refer to Note 1, Summary of Significant Accounting Policies - Concentration of Customers and Suppliers).
	Vertical Markets - 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 and 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. Vertical Markets customers include Customer B, Customer C and Customer D (refer to Note 1, Summary of Significant Accounting Policies - Concentration of Customers and Suppliers).
	Corporate - The Corporate segment consists primarily of costs that support both the Server OEM and Vertical Markets segments.
	Net revenues by segment are as follows (in thousands):
		Three Months Ended
		March 31,
		2014			2015
	Net revenue:
	Server OEM	$	25,854		$	25,178
	Vertical Markets	22,353			35,943
	Corporate	—			—
	Total net revenue	$	48,207		$	61,121
	Operating income (loss) by segment and a reconciliation to consolidated income (loss) before income taxes is as follows (in thousands):
		Three Months Ended
		March 31,
		2014			2015
	Operating income (loss):
	Server OEM	$	5,122		$	5,394
	Vertical Markets	7,407			12,486
	Corporate	(12,932		)	(13,985		)
	Total operating income (loss)	(403		)	3,895
	Total other income (expense), net	(8		)	(14		)
	Income (loss) before income taxes	$	(411	)	$	3,881
	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.

Subsequent_Event_Notes

Subsequent Event (Notes)	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Subsequent Event
	In April 2015, the Company announced an agreement with Quantum Corporation, or Quantum, whereby Quantum will integrate the Company's full line of disk storage systems into their tiered storage offerings, and will provide global channel sales and marketing resources, service and support. As a result, the Company may initially experience a reduction in sales and marketing expenses, and expects to record less than $0.2 million of severance and related restructuring costs associated with this agreement in the second quarter of 2015. Correspondingly, the gross profit on sales through the channel may decline, however, the impact on future net income is not expected to be material.

Summary_Of_Significant_Account1

Summary Of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
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 and Form 10-K/A for the year ended December 31, 2014. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results that may be expected for future quarters or the year ending December 31, 2015.
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 (refer to Note 3, Inventories) and recurring and specific issue warranty obligations (refer to Note 5, Product Warranties). In addition, we have other accounting policies that involve estimates such as the determination of useful lives of long-lived assets, the valuation of long-lived assets, accruals for restructuring, capitalization of software development costs, contingent liabilities and income taxes, including the valuation allowance for deferred tax assets, and recognition of share-based compensation expense. 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 original equipment manufacturers, or 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 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 contractual return rights, 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. Software revenue represents less than 5% of our net revenue for all periods presented.
	Specific long-term software contracts may contain multiple deliverables including software licenses, services, training and post-contract support, or 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 relates to 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 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 taken legal title of our product from the warehouse to incorporate into its end products.
Research and Development and Capitalized Software Development Costs	Research and Development and Capitalized Software Development Costs
	Research and development costs are expensed as incurred. In conjunction with the development of our products, we incur certain software development costs. For the majority of our software development projects, no costs have been capitalized because the period between achieving technological feasibility and completion of such software is relatively short and software development costs qualifying for capitalization have been insignificant. On a specific software project under development, it was determined that the period between achieving technological feasibility and completion of the software is not relatively short and software development costs qualifying for capitalization will be significant. For this project, since technological feasibility has been established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. We have determined that technological feasibility for our software products is reached after all high-risk development issues have been resolved through coding and testing. The amortization of these costs will be included in cost of revenue over the estimated life of the products. Refer to Note 4, Intangible Assets.
Contingent Liabilities	Contingent Liabilities
	We are involved in certain claims from time to time arising in the ordinary course of business involving our products, suppliers, and/or customers. We may incur settlements, fines, penalties or judgments in connection with some of these matters. While we may be unable to estimate the ultimate dollar amount of exposure or loss in connection with these matters, we make accruals as warranted. The amounts we accrue could vary substantially from amounts we pay due to several factors including the following: possible third-party contributions, the inherent uncertainties of the estimation process, and the uncertainties involved in litigation. We believe that we have adequately provided in our consolidated financial statements for the impact of these contingencies. We also believe that the outcomes will not materially affect our results of operations, our financial position or our cash flows, except as disclosed. Refer to Note 8, Commitments and Contingencies.
Concentration of Customers and Suppliers	Concentration of Customers and Suppliers
	A majority of our net revenue is derived from a limited number of customers. For the three months ended March 31, 2014, we had two customers, Customer A and Customer C, that accounted for 10% or more of our total net revenue. For the three months ended March 31, 2015, we had three customers, Customer A, Customer C and Customer D, that accounted for 10% or more of our total net revenue. 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, or a customer who has accounted for 10% or more of our total net revenue in the current quarter and/or any quarter in the prior fiscal year, is as follows (as a percentage of total net revenue):
		Three Months Ended
		March 31,
		2014		2015
	Customer A	49	%	35	%
	Customer B	1	%	7	%
	Customer C	15	%	18	%
	Customer D	7	%	17	%
	If our relationship with our major customers 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 our major customers or our other customers will expand or not otherwise be disrupted.
	We currently rely on one contract manufacturing partner, Foxconn Technology Group, or Foxconn, to produce substantially all of our products. As a result, should Foxconn not produce and deliver inventory for us to sell on a timely basis, operating results may be adversely impacted. In November 2011, we amended our agreement with Foxconn to extend the manufacturing agreement for a period of three years. In November 2014, we extended the agreement to March 11, 2015, and in March 2015, we extended the agreement to September 1, 2015. We are currently in negotiations to further extend our contract. If the agreement is not further extended, pursuant to terms in the existing agreement, we can continue to operate with Foxconn for a period of six months following the expiration of the agreement, as the Company may issue purchase orders and Foxconn may accept purchase orders under the terms and conditions of the existing agreement.
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. At December 31, 2014 and March 31, 2015, the carrying value of cash and cash equivalents approximates fair value due to the short period of time to maturity.
	As of March 31, 2015, $3.0 million of the $46.3 million of cash, cash equivalents and marketable securities was held by our foreign subsidiaries, as compared to $3.0 million of the $42.5 million of cash, cash equivalents and marketable securities held by our foreign subsidiaries as of December 31, 2014. We currently intend to repatriate approximately $2.0 million of our cash and cash equivalents when we close down our Netherlands subsidiary during 2015. We obtained a favorable ruling from the Netherlands and will not be charged foreign taxes on the repatriation and we expect that our net operating loss carryforwards and foreign tax credits will be available to offset any United States tax liability, should one arise.
	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 United States income taxes to the extent a tax liability results after the utilization of net operating loss carryforwards and available tax credits. Refer to Note 8, Commitments and Contingencies, for a discussion of the associated cumulative translation loss.
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. Allowance for doubtful accounts was $0.1 million at December 31, 2014 and March 31, 2015.
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 three months ended March 31, 2014 or 2015.
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, other than the matter described below, 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 May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606), or ASU 2014-09. This update creates modifications to various revenue accounting standards for specialized transactions and industries. ASU 2014-09 is intended to conform revenue accounting principles with a concurrently issued International Financial Reporting Standards with previously differing treatment between United States practice and those of much of the rest of the world, as well as, to enhance disclosures related to disaggregated revenue information. The updated guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. The updated guidance is effective for public entities for annual reporting periods beginning on or after December 15, 2016, and interim periods within those annual periods. Early adoption is not permitted and entities have the choice to apply ASU 2014-09 either retrospectively to each reporting period presented or by recognizing the cumulative effect of applying ASU 2014-09 at the date of initial application and not adjusting comparative information. In April 2015, the FASB tentatively decided to defer for one year the effective date of ASU 2014-09, which will extend the effective date for public entities to annual reporting periods beginning on or after December 15, 2017, and determined that Company's will be permitted to early adopt the standard as of the original effective date of ASU 2014-09. The Company is currently evaluating the requirements of ASU 2014-09 and has not yet determined its impact on the Company's unaudited condensed consolidated financial statements. The Company does not expect to early adopt the standard.
	In April 2015, the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), or ASU 2015-05. This update provides guidance to customers about whether a cloud computing arrangement includes a software license, and if so, to apply the accounting requirements for other intangible assets. If the cloud computing arrangement does not include a software license, ASU 2015-05 indicates that the arrangement should be accounted for as a service contract. The updated guidance is effective for public entities for annual reporting periods beginning on or after December 15, 2015, and interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the requirements of ASU 2015-05 and has not yet determined its impact on the Company's unaudited condensed consolidated financial statements.

Summary_Of_Significant_Account2

Summary Of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Net revenue by major customer	Net revenue by major customer, or a customer who has accounted for 10% or more of our total net revenue in the current quarter and/or any quarter in the prior fiscal year, is as follows (as a percentage of total net revenue):
		Three Months Ended
		March 31,
		2014		2015
	Customer A	49	%	35	%
	Customer B	1	%	7	%
	Customer C	15	%	18	%
	Customer D	7	%	17	%

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2015
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, 2014 and 2015 (in thousands, except per share data):
		Three Months Ended
		March 31,
		2014				2015
	Net income (loss)	$	(412	)		$	3,871
	Basic weighted-average common shares outstanding	59,678				60,760
	Assumed exercise of dilutive stock options, warrants and restricted stock	—				4,056
	Diluted weighted-average common shares outstanding	59,678				64,816
	Net income (loss):
	Basic income (loss) per share	$	(0.01	)		$	0.06
	Diluted income (loss) per share	$	(0.01	)		$	0.06
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
		March 31,
		2014						2015
		Number of			Range of			Number of	Range of
		Potential			Exercise Prices			Potential	Exercise Prices
		Shares						Shares
	Stock options	10,923,538			$0.47 - $7.84			4,401,602	$4.00 - $7.04
	Unvested stock awards	43,220			$	—		336,708	$	—
	Warrants	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,
		2014			2015
	Shares issued:
	Options exercised	632			62
	Restricted stock awards granted	—			283
	Shares purchased under stock plan	198			—
	Share decreases:
	Shares repurchased for tax purposes	(15	)		(1	)

Inventories_Tables

Inventories (Tables)	3 Months Ended
	Mar. 31, 2015
Inventory Disclosure [Abstract]
Components of inventory	The components of inventories consist of the following (in thousands):
		December 31,		March 31,
		2014		2015
	Purchased parts and materials	$	2,273	$	2,568
	Finished goods	9,069		6,884
	Total inventory	$	11,342	$	9,452

Intangible_Assets_Tables

Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of identifiable intangible assets	Identifiable intangible assets are as follows (in thousands):
			31-Dec-14
		Estimated Useful Life	Gross		Accumulated Amortization		Net
	Technology-based intangible assets	Not yet determined	$	2,680	$	—	$	2,680
	Total intangible assets		$	2,680	$	—	$	2,680
			31-Mar-15
		Estimated Useful Life	Gross		Accumulated Amortization		Net
	Technology-based intangible assets	Not yet determined	$	3,332	$	—	$	3,332
	Total intangible assets		$	3,332	$	—	$	3,332

Product_Warranties_Tables

Product Warranties (Tables)	3 Months Ended
	Mar. 31, 2015
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,
		2014			2015
	Balance, beginning of period	$	2,965		$	3,363
	Charges to operations	414			342
	Deductions for payments made	(175		)	(385		)
	Changes in estimates	40			149
	Balance, end of period	$	3,244		$	3,469

Fair_Value_Measurements_Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2015
Fair Value Disclosures [Abstract]
Assets Measured at Fair Value on a Recurring Basis	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)
		2014
		(in thousands)
	Cash and cash equivalents	$	42,492	$	42,492	$	—	$	—	$	—
				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)
		2015
		(in thousands)
	Cash and cash equivalents	$	46,281	$	46,281	$	—	$	—	$	—

Segment_Information_Tables

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Segment Reporting Information by Segment	Net revenues by segment are as follows (in thousands):
		Three Months Ended
		March 31,
		2014			2015
	Net revenue:
	Server OEM	$	25,854		$	25,178
	Vertical Markets	22,353			35,943
	Corporate	—			—
	Total net revenue	$	48,207		$	61,121
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]	Operating income (loss) by segment and a reconciliation to consolidated income (loss) before income taxes is as follows (in thousands):
		Three Months Ended
		March 31,
		2014			2015
	Operating income (loss):
	Server OEM	$	5,122		$	5,394
	Vertical Markets	7,407			12,486
	Corporate	(12,932		)	(13,985		)
	Total operating income (loss)	(403		)	3,895
	Total other income (expense), net	(8		)	(14		)
	Income (loss) before income taxes	$	(411	)	$	3,881

Summary_Of_Significant_Account3

Summary Of Significant Accounting Policies (Concentration of Customers and Suppliers) (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Major customers
Number of major customers	3	2
Revenue [Member] | Customer Concentration Risk [Member] | Customer A [Member]
Major customers
Concentration risk, percentage of total net revenues	35.00%	49.00%
Revenue [Member] | Customer Concentration Risk [Member] | Customer B [Member]
Major customers
Concentration risk, percentage of total net revenues	7.00%	1.00%
Revenue [Member] | Customer Concentration Risk [Member] | Customer C [Member]
Major customers
Concentration risk, percentage of total net revenues	18.00%	15.00%
Revenue [Member] | Customer Concentration Risk [Member] | Customer D [Member]
Major customers
Concentration risk, percentage of total net revenues	17.00%	7.00%

Summary_Of_Significant_Account4

Summary Of Significant Accounting Policies (Allowance for Doubtful Accounts) (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Accounting Policies [Abstract]
Balance, quarter ended	$87	$87

Summary_Of_Significant_Account5

Summary Of Significant Accounting Policies (Revenue Recognition) (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Minimum [Member]
Concentration Risk [Line Items]
Product maintenance contract term	12 months
Maximum [Member]
Concentration Risk [Line Items]
Product maintenance contract term	36 months
Net Revenue Derived From Services [Member]
Concentration Risk [Line Items]
Maximum percentage of total revenue	10.00%	10.00%
Revenue, Software [Member] [Member]
Concentration Risk [Line Items]
Maximum percentage of total revenue	5.00%	5.00%

Summary_Of_Significant_Account6

Summary Of Significant Accounting Policies Cash and cash equivalents (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013
Cash and cash equivalents	$46,281,000	$42,492,000	$40,322,000	$40,406,000
Earnings expected to be repatriated during fiscal year	2,000,000
Foreign Subsidiaries [Member]
Cash and cash equivalents	$3,000,000	$3,000,000

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, 2015	Mar. 31, 2014
Earnings Per Share [Abstract]
Net Income (Loss)	$3,871	($412)
Weighted Average Number of Shares Outstanding, Basic	60,760	59,678
Assumed exercise of dilutive stock options, warrants and restricted stock	4,056	0
Weighted Average Number of Shares Outstanding, Diluted	64,816	59,678
Earnings Per Share, Basic	$0.06	($0.01)
Earnings Per Share, Diluted	$0.06	($0.01)

Earnings_Per_Share_Details

Earnings Per Share (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Outstanding equity awards not included in the calculation of diluted net loss per share:
Shares issued: Options exercised	62,000	632,000
Share decreases: Shares repurchased for tax purposes	-1,000	-15,000
Stock options
Outstanding equity awards not included in the calculation of diluted net loss per share:
Number of antidilutive securities excluded from computation of earnings per share	4,401,602	10,923,538
Range of exercise prices, lower limit	4	0.47
Range of exercise prices, upper limit	7.04	7.84
Unvested restricted stock awards
Outstanding equity awards not included in the calculation of diluted net loss per share:
Number of antidilutive securities excluded from computation of earnings per share	336,708	43,220
Shares issued: Restricted stock awards granted	283,000	0
Warrant
Outstanding equity awards not included in the calculation of diluted net loss per share:
Number of antidilutive securities excluded from computation of earnings per share	0	1,602,489
Warrants, exercise price	0	2.4
2000ESPP
Outstanding equity awards not included in the calculation of diluted net loss per share:
Shares issued: Shares purchased under stock plan	0	198,000

Inventories_Details

Inventories (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Inventory Disclosure [Abstract]
Purchased parts and materials	$2,568	$2,273
Finished goods	6,884	9,069
Total inventory	$9,452	$11,342

Intangible_Assets_Details

Intangible Assets (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Gross	$3,332,000	$2,680,000
Accumulated Amortization	0	0
Finite-Lived Intangible Assets, Net	3,332,000	2,680,000
Amortization of Intangible Assets	0
Technology-based Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Gross	3,332,000	2,680,000
Accumulated Amortization	0	0
Finite-Lived Intangible Assets, Net	$3,332,000	$2,680,000

Product_Warranties_Details

Product Warranties (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Product Warranties Disclosures [Abstract]
Maximum product warranty term	3 years
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance, beginning of period	$3,363	$2,965
Charges to operations	342	414
Deductions for costs incurred	-385	-175
Changes in estimates	149	40
Balance, end of period	$3,469	$3,244

Credit_Facilities_Details

Credit Facilities (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Credit Facility [Line Items]
Letters of credit outstanding	$0	$0
Threshold One
Credit Facility [Line Items]
Customer accounts receivable concentration limit	25.00%
Threshold Two
Credit Facility [Line Items]
Customer accounts receivable concentration limit	50.00%
Threshold Three
Credit Facility [Line Items]
Customer accounts receivable concentration limit	85.00%
Silicon Valley Bank
Credit Facility [Line Items]
Remaining borrowing capacity	30,000,000
Credit facility | Silicon Valley Bank
Credit Facility [Line Items]
Borrowing capacity	30,000,000
Effective interest rate (as a percentage)	4.00%
Possible Increase in financing facility	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
Credit facility | Silicon Valley Bank | Prime Rate
Credit Facility [Line Items]
Interest rate over prime (as a percentage)	1.00%
Credit facility | Silicon Valley Bank | Required Borrowing Base Immediately Preceeding 90 Days
Credit Facility [Line Items]
Borrowing base requirement	40,000,000
Letters of credit | Silicon Valley Bank
Credit Facility [Line Items]
Letters of credit outstanding	$0

Fair_Value_Measurements_Detail

Fair Value Measurements (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring Basis
Letters of credit outstanding	$0	$0
Recurring
Fair Value, Assets and Liabilities Measured on Recurring Basis
Assets, Fair Value Adjustment	0	0
Recurring | Reported Value
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash and cash equivalents	46,281,000	42,492,000
Recurring | Fair Value | Level 1
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash and cash equivalents	46,281,000	42,492,000
Recurring | Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash and cash equivalents	0	0
Recurring | Fair Value | Level 3
Fair Value, Assets and Liabilities Measured on Recurring Basis
Cash and cash equivalents	$0	$0

Commitments_And_Contingencies_

Commitments And Contingencies (Details) (USD $)	12 Months Ended
In Millions, unless otherwise specified	Dec. 31, 2015	Mar. 31, 2015
Forecast
Loss Contingencies [Line Items]
Cumulative foreign currency translation adjustments to be reclassified	$2.70
Contract Dispute
Loss Contingencies [Line Items]
Range of possible loss, minimum		1
Range of possible loss, maximum		3.4
Loss contingency accrual		$1

Segment_Information_Details

Segment Information (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
	segment	segment
Segment Reporting [Abstract]
Number of reportable segments	3	3

Segment_Information_Schedule_o

Segment Information Schedule of Net Revenues by Segment (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Net Revenue	$61,121	$48,207
Server OEMs [Member]
Segment Reporting Information [Line Items]
Net Revenue	25,178	25,854
Vertical Markets [Member]
Segment Reporting Information [Line Items]
Net Revenue	35,943	22,353
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, 2015	Mar. 31, 2014
Segment Reporting Information [Line Items]
Total operating income (loss)	$3,895	($403)
Total other income (expense), net	-14	-8
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest	3,881	-411
Server OEMs [Member]
Segment Reporting Information [Line Items]
Total operating income (loss)	5,394	5,122
Vertical Markets [Member]
Segment Reporting Information [Line Items]
Total operating income (loss)	12,486	7,407
Corporate Segment [Member]
Segment Reporting Information [Line Items]
Total operating income (loss)	($13,985)	($12,932)

Subsequent_Event_Details

Subsequent Event (Details) (Scenario, Forecast [Member], USD $)	3 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2015
Scenario, Forecast [Member]
Subsequent Event [Line Items]
Severance Costs	$0.20