NASDAQ: HILL NASDAQ: HILL Dot Hill Systems: 2007 – 2011 Key Financial Metrics 0 0 Exhibit 99.2 |
NASDAQ: HILL NASDAQ: HILL Cautionary Language and Forward-Looking Statements This presentation contains “forward-looking statements” and “forward-looking information”, which may include, but is not limited to, statements with respect to the future financial or operating performance of Dot Hill, estimated operating expenses, Dot Hill’s future prospects and the implementation of Dot Hill’s transition strategy. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “is expecting”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes”, or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may”, “could”, “would”, “might”, or “will” be taken, occur or be achieved. The purpose of forward-looking information is to provide the reader with information about management’s expectations and plans for Dot Hill. Readers are cautioned that forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Dot Hill to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors include, among others, the risk that Dot Hill’s next-generation products may not achieve market acceptance, Dot Hill’s expense reduction and resource allocation plans may not continue to have the anticipated positive effects on Dot Hill’s financial results, the risks associated with macroeconomic factors that are outside of Dot Hill’s control, the fact that no Dot Hill customer agreements provide for mandatory minimum purchase requirements, the risk that one or more of Dot Hill’s OEM or other customers may cancel or reduce orders, not order as forecasted or terminate their agreements with Dot Hill, the risk that Dot Hill’s new products may not prove to be popular, the risk that one or more of Dot Hill’s suppliers or subcontractors may fail to perform or may terminate their agreements with Dot Hill, unforeseen technological, intellectual property, personnel or engineering issues, and the additional risks set forth in the Forms 10-K and 10-Q most recently filed with the Securities and Exchange Commission by Dot Hill. Although Dot Hill has attempted to identify statements containing important factors that could cause actual actions, event or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained herein are made as of the date of this document based on the opinions and estimates of management on the date statements containing such forward looking information are made, and Dot Hill disclaims any obligation to update any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward looking information. 1 1 Safe Harbor Safe Harbor March 14, 2012 March 14, 2012 |
NASDAQ: HILL NASDAQ: HILL About Non-GAAP Financial Measures About Non-GAAP Financial Measures 2 2 The Company’s non-GAAP financial measures exclude the impact of stock-based compensation expense, intangible asset amortization, restructuring and severance charges, legal settlement gains or losses, charges or credits for contingent consideration adjustments, charges for impairment of goodwill and long-lived assets, contra-revenue charges from the grant or extension of customer warrants, specific and significant warranty claims arising from a supplier’s defective products, charges and acquisition costs for Cloverleaf and Ciprico’s assets, and effects of foreign currency gains or losses. In addition, as a result of exiting our relationship with NetApp on or about November 30, 2010, the Company will also be presenting standalone non-GAAP revenue and gross margin metrics excluding the historical revenue and gross margin attributable to NetApp in order to better compare revenue from its continuing business. The Company believes that these non-GAAP financial measures provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operating results and facilitates comparison of operating results across reporting periods. The Company used these non-GAAP measures when evaluating its financial results as well as for internal resource management, planning and forecasting purposes. These non-GAAP measures should not be viewed in isolation from or as a substitute for the Company’s financial results in accordance with GAAP. A reconciliation of GAAP to non-GAAP measures is attached to this presentation. |
NASDAQ: HILL NASDAQ: HILL 3 3 Non-GAAP Revenue - Non-GAAP Revenue - 2007-2011 2007-2011 March 14, 2012 March 14, 2012 Note: NetApp Revenue ($K) + Revenue ($K) excl. NetApp = Total non-GAAP Revenue ($K) |
NASDAQ: HILL NASDAQ: HILL 4 4 March 14, 2012 March 14, 2012 Non-GAAP Gross Margin $ - Non-GAAP Gross Margin $ - 2007-2011 2007-2011 Note: NetApp Gross Margin ($K) + Gross Margin ($K) excl. NetApp = Total non-GAAP Gross Margin ($K) |
NASDAQ: HILL NASDAQ: HILL 5 5 March 14, 2012 March 14, 2012 Non-GAAP Gross Margin % - Non-GAAP Gross Margin % - 2007-2011 2007-2011 |
NASDAQ: HILL NASDAQ: HILL 6 6 Non-GAAP EBITDA ($K) - Non-GAAP EBITDA ($K) - 2007-2011 2007-2011 |
NASDAQ: HILL NASDAQ: HILL 7 7 March 14, 2012 March 14, 2012 Cash ($K) - Cash ($K) - 2007-2011 2007-2011 |
NASDAQ: HILL NASDAQ: HILL GAAP to non-GAAP Reconciliation 8 8 |
NASDAQ: HILL NASDAQ: HILL 9 9 March 14, 2012 March 14, 2012 GAAP to non-GAAP Reconciliation GAAP to non-GAAP Reconciliation 2007 2008 2009 2010 2011 Net revenue, as reported 207,095 $ 272,879 $ 234,383 $ 252,494 $ 197,461 $ Effect of warrants - (2,282) - - (1,007) Non-GAAP net revenue 207,095 $ 275,161 $ 234,383 $ 252,494 $ 198,468 $ Gross profit, as reported 26,433 $ 30,388 $ 37,827 $ 42,830 $ 41,633 $ Effect of stock-based compensation 365 377 382 489 828 Effect of severance costs 50 246 - 37 13 Effect of warrants - 2,282 - - 1,007 Effect of gain from insurance recovery - - - - (555) Effect of power supply component failures - - - - 4,270 Effect of long-lived asset impairment - - - - 2,928 Effect of intangible asset amortization 1,625 - - 2,004 2,054 Non-GAAP gross profit 28,473 $ 33,293 $ 38,209 $ 45,360 $ 52,178 $ Net loss, as reported (60,228) $ (25,765) $ (13,625) $ (13,251) $ (22,024) $ Effect of currency (gain) loss (2,220) (586) 148 (189) (254) Effect of stock-based compensation 2,351 2,884 2,825 3,003 5,385 Effect of goodwill impairment 40,725 5,432 - - 4,140 Effect of contingent consideration - - (649) (144) 21 Effect of restructuring charge - 813 2,430 2,196 668 Effect of intangible asset amortization 2,102 1,559 1,136 2,004 2,054 Effect of gain from insurance recovery - - - - (555) Effect of power supply component failures - - - - 4,270 Effect of long-lived asset impairment - - - - 2,928 Effect of legal settlement - (3,836) - - - Effect of warrants - 2,282 - - 1,007 Effect of severance costs 974 533 - 95 126 Effect of Cloverleaf acquisition costs - - 469 314 - Non-GAAP net income (loss) (16,296) $ (16,684) $ (7,267) $ (5,972) $ (2,234) $ Non-GAAP net income (loss) (16,296) $ (16,686) $ (7,269) $ (5,972) $ (2,234) $ Interest expense (3) 57 57 36 44 Income tax expense (177) 191 (40) 213 129 Depreciation 4,428 4,274 1,735 2,028 2,701 Non-GAAP EBITDA (12,048) $ (12,164) $ (5,517) $ (3,695) $ 640 $ DOT HILL SYSTEMS CORP. UNAUDITED RECONCILIATION OF CONSOLIDATED NON-GAAP MEASURES (In thousands, except per share amounts) |
NASDAQ: HILL NASDAQ: HILL 10 10 March 14, 2012 March 14, 2012 GAAP to non-GAAP Reconciliation – GAAP to non-GAAP Reconciliation – excl. NetApp excl. NetApp 2007 2008 2009 2010 2011 Net revenue, as reported 207,095 $ 272,879 $ 234,383 $ 252,494 $ 197,461 $ Effect of warrants - (2,282) - - (1,007) Removal of NetApp (25,857) (63,184) (57,966) (65,603) - Non-GAAP net revenue 181,238 $ 211,977 $ 176,417 $ 186,891 $ 198,468 $ Gross profit, as reported 26,433 $ 30,388 $ 37,827 $ 42,830 $ 41,633 $ Effect of stock-based compensation 365 377 382 489 828 Effect of severance costs 50 246 - 37 13 Effect of warrants - 2,282 - - 1,007 Effect of gain from insurance recovery - - - - (555) Effect of power supply component failures - - - - 4,270 Effect of long-lived asset impairment - - - - 2,928 Effect of intangible asset amortization 1,625 - - 2,004 2,054 Removal of NetApp (1,216) (5,019) (7,604) (8,540) - Non-GAAP gross profit 27,257 $ 28,274 $ 30,605 $ 36,820 $ 52,178 $ DOT HILL SYSTEMS CORP. UNAUDITED RECONCILIATION OF CONSOLIDATED NON-GAAP MEASURES (In thousands, except per share amounts) |