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TheStreet Open House

Datalink Reports 2013 Second Quarter And Six Month Operating Results

Datalink (Nasdaq: DTLK), a leading provider of data center infrastructure and services, today reported results for its second quarter and six months that ended June 30, 2013. Revenues for the quarter ended June 30, 2013, increased 23% to $148.2 million compared to $120.0 million for the quarter ended June 30, 2012 and increased 11% over revenues of $133.6 million in the first quarter of 2013. Revenues for the six months ended June 30, 2013, increased 18% to $281.7 million compared to $239.1 million for the six months ended June 30, 2012.

The company’s results for the quarter and six months ended June 30, 2013, include the results of operations from the acquisition of Strategic Technologies, Inc. (“StraTech”), which was completed on October 4, 2012.

GAAP ResultsOn a GAAP basis, the company reported net earnings of $2.9 million or $0.16 per diluted share for the second quarter ended June 30, 2013. This compares to net earnings of $3.2 million or $0.18 per diluted share in the second quarter of 2012. For the six months ended June 30, 2013, the company reported net earnings of $4.0 million or $0.22 per diluted share, compared to net earnings of $5.4 million, or $0.31 per diluted share, for the six months ended June 30, 2012. The decrease in net earnings is due to the amortization of intangible assets related to the acquisition of StraTech.

Non-GAAP ResultsNon-GAAP net earnings for the second quarter of 2013 were $4.7 million, or $0.26 per diluted share, compared to non-GAAP net earnings of $4.0 million, or $0.23 per diluted share, in the second quarter of 2012. For the six months ended June 30, 2013, the company reported non-GAAP net earnings of $7.9 million, or $0.44 per diluted share, compared to non-GAAP net earnings of $6.9 million, or $0.40 per diluted share, for the six months ended June 30, 2012. A detailed reconciliation between GAAP and non-GAAP information is contained in the tables included herein.

Highlights of the quarter and six months ended June 30, 2013, include:

  • Record second quarter and first six month non-GAAP revenues and earnings.
  • Record $54.9 million combined customer support and professional services revenues in second quarter 2013, up 28% from second quarter 2012 and 12% from first quarter 2013. Second quarter professional services revenues alone were up 24% from the second quarter of 2012 and up 30% from first quarter 2013.
  • Continued growth in customers who did over $1 million of business with the company from 22 in second quarter 2012 to 26 in second quarter 2013.
  • Selection as the first Hitachi Data Systems partner authorized to provide OneCall support for Hitachi Unified Compute Platform Select for VMware vSphere with Cisco Unified Computing System, and for Hitachi Virtual Storage Platform, converged infrastructure solutions.
  • Authorized by Cisco to provide OneCall support on all Cisco products Datalink sells with an initial focus on data center products.
  • A major expansion of Datalink’s professional services portfolio with the addition of application, data, and infrastructure migration services.
  • Ranked #52 on CRN’s 2013 Solution Provider 500 list of North America’s top technology integrators – up from 59th last year and 72nd and 195th previous to that – based on annual revenues.

“We turned in a solid revenue and earnings performance in the second quarter and first half of 2013. That performance was fueled by three factors: our continually expanding mix of data center products and services, our emphasis on selling more complex projects with higher wallet share, and rising market demand for modern data center infrastructures,” said Paul Lidsky, Datalink’s president and CEO. “Companies are increasingly aware of our ability to transform their data centers allowing them to drive business agility and facilitate advances such as private and hybrid cloud deployments. This continues to provide a strong foundation for our growth.”

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