Datalink Corporation Reports Revenues
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Datalink Corporation, an information storage company, reported that revenues for the quarter ended June 30, 2001 were $27.0 million compared to $34.9 million in the same period a year ago. Net loss was $623,000, or $.07 per diluted share, compared to earnings of $1.4 million, or $.15 per diluted share, for the same period in the prior year. These results are consistent with guidance issued on June 21, 2001.
For the six months ended June 30, 2001, revenues totaled $67.9 million, up 8% over the $62.9 million generated in the first half of 2000. Net income before the cumulative impact from a change in accounting method was $453,000 or $.05 per diluted share, compared to net income before the cumulative impact from a change in accounting method of $2.3 million or $.25 per diluted share, in the same period a year ago.
Greg Meland, Datalink's President and CEO, commented, "During the second quarter, we experienced a very difficult operating environment. The current level of economic uncertainty has led to the well-documented overall reduction in capital spending, including spending for technology. We faced the challenge of a 34% sequential decline in revenues from our first quarter of 2001. As a result of the drop in revenues, we posted our first quarterly operating loss as a public company. Even with these challenges, our year to date revenues have grown 8% over the prior year."
Meland continued, "Despite the lack of current spending from many of our customers, we believe that advanced information strategies and technologies, such as SANs (storage area networks) are more vital than ever to an organization's productivity and effectiveness. Datalink's model of architecting information storage solutions selecting the best technologies for customers continues to be well received. As mentioned in our June press release, we recently received a commitment for two new SAN implementations that together exceed $4 million. One is for a major financial institution in the Northeast and the other a large health care information management company in the Southeast."
For the three-month period ended September 30, 2001, Datalink expects revenues to range from $33 to $38 million and its operating results to range from breakeven to earnings of $.04 per diluted share.