Ends Quarter with Record Backlog
CHANHASSEN, Minn., Oct 04, 2010 (BUSINESS WIRE) --
Datalink
(Nasdaq: DTLK), a leading provider of data center infrastructure and
services, today confirmed its guidance for the third quarter of 2010.
The Company expects third quarter 2010 revenues to be in the range of
$69.0 million to $70.0 million. This compares to revenues of $42.7
million in the third quarter of 2009, a 62% increase. On a GAAP basis
the company expects results per share to be in the range of a loss of
$0.01 per share to earnings of $0.01 per share. On a non-GAAP basis the
company expects earnings per share in the range of $0.07 per share to
$0.09 per share.
The company ended the quarter with a record backlog of over $52 million.
Paul Lidsky, Datalink's president and CEO, commented, "Customer demand
for our data center solutions remained strong during the quarter as
result of a steadily increasing trend in technology spending coupled
with the success we are seeing from the investments we made to expand
Datalink's market share around data center solutions. This is evidenced
by both record third quarter revenues and backlog."
The company will report its third quarter financial results and hold an
investor conference call after the market closes on October 19, 2010.
The company's president and chief executive officer, Paul Lidsky, and
its vice president of administration and chief financial officer, Greg
Barnum, will be presenting at the 2010 Craig-Hallum Capital Group's
Alpha Select Investor Conference being held at The Roosevelt Hotel in
New York City. Datalink's presentation will take place on Wednesday,
October 6, 2010 at 11:35AM.
About Datalink
A complete data center solutions and services provider for Fortune 500
and mid-tier enterprises, Datalink transforms data centers so they
become more efficient, manageable and responsive to changing business
needs. Datalink helps leverage and protect storage, server, and network
investments with a focus on long-term value, offering a full lifecycle
of services, from consulting and design to implementation, management
and support. Datalink solutions span virtualization
and consolidation, data
storage and protection, advanced
networks, and business
continuity. Each delivers measurable performance gains and maximizes
the business value of IT. For more information, call 800.448.6314 or
visit www.datalink.com.
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for certain forward-looking statements. This press release
contains forward-looking statements, including our internal projections
of anticipated 2010 results, which reflect our views regarding future
events and financial performance. These forward-looking statements are
subject to certain risks and uncertainties, including those identified
below, which could cause actual results to differ materially from
historical results or those anticipated. The words "aim, "believe,"
"expect," "anticipate," "intend," "estimate" and other expressions which
indicate future events and trends identify forward-looking statements.
Actual future results and trends may differ materially from historical
results or those anticipated depending upon a variety of factors,
including, but not limited to: the level of continuing demand for
storage, including the effects of current economic and credit
conditions; competition and pricing pressures and timing of our
installations that may adversely affect our revenues and profits; fixed
employment costs that may impact profitability if we suffer revenue
shortfalls; revenue recognition policies that may unpredictably defer
reporting of our revenues; our ability to hire and retain key technical
and sales personnel; our dependence on key suppliers; our ability to
adapt to rapid technological change; risks associated with integrating
possible future acquisitions; fluctuations in our quarterly operating
results; future changes in applicable accounting rules; and volatility
in our stock price. Further, our revenues for any particular quarter are
not necessarily reflected by our backlog of contracted orders, which
also may fluctuate unpredictably. We cannot assure that our recent
acquisition of Cross Telecom assets will increase our revenues or
profits. We also cannot assure that in conjunction with our December
2009 acquisition of certain assets and assumption of certain liabilities
of Incentra, LLC's reseller business we will retain Incentra's employee
base, customer and advanced technology certifications, or generate
anticipated revenues or profits from the acquired business.
Non-GAAP Details
Non-GAAP financial measures exclude the impact from acquisition
accounting adjustments to deferred revenue and costs, stock-based
compensation expense, amortization of intangible assets, integration and
transaction costs related to acquisitions and the related effects on
income taxes. These non-GAAP measures are not in accordance with, or an
alternative for measures prepared in accordance with, GAAP and may be
different from non-GAAP measures used by other companies. In addition,
these non-GAAP measures are not based on any comprehensive set of
accounting rules or principles. Datalink believes that non-GAAP measures
have limitations in that they do not reflect all of the amounts
associated with Datalink's results of operations as determined in
accordance with GAAP and that these measures should only be used to
evaluate Datalink's results of operations in conjunction with the
corresponding GAAP measures.
These non-GAAP financial measures facilitate management's internal
comparisons to the Datalink's historical operating results and
comparisons to competitors' operating results. We include these non-GAAP
financial measures in our earnings announcement because we believe they
are useful to investors in allowing for greater transparency with
respect to supplemental information used by management in its financial
and operational decision making, such as employee compensation planning.
Datalink believes that the presentation of these non-GAAP measures when
shown in conjunction with the corresponding GAAP measures provides
useful information to investors and management regarding financial and
business trends relating to its financial condition and results of
operations.
SOURCE: Datalink
Company Contacts:
Media & Alliances:
Suzanne Gallagher, 720-566-5110
SVP of Marketing
Email: sgallagher@datalink.com
or
Investors & Analysts:
Greg Barnum, 952-944-3462
Vice President and CFO
Email: gbarnum@datalink.com
