Datalink (Nasdaq: DTLK), a leading provider of data center infrastructure and services, today announced that it expects to exceed its previous revenue and earnings guidance for the fourth quarter of 2013. The company now expects fourth quarter 2013 revenues to be approximately $174 million. The company previously had provided fourth quarter 2013 revenue guidance of between $160 million and $170 million. The company now expects fourth quarter 2013 earnings per share to be in the range of $0.23 to $0.27 per share on a GAAP basis, and $0.33 to $0.37 per share on a non-GAAP basis. That is an increase over the company’s previous guidance of $0.15 to $0.21 per share for GAAP earnings and $0.24 to $0.30 per share for non-GAAP earnings. The company will report its fourth quarter financial results and hold an investor conference call after the market closes on February 20, 2014. Upcoming Investor ConferencesPaul Lidsky, president and CEO, and Greg Barnum, chief financial officer, are scheduled to present at the following investor conferences:
- 16th Annual Needham Growth Conference on Thursday January 16th at 10:00 a.m. (EST), from the New York Palace Hotel. To access the Webcast of the presentation go to http://wsw.com/webcast/needham64/DTLK. An archived version of the presentation will be available at the same Internet address for 90 days following the live Webcast.
- Noble Financial Capital Markets’ Tenth Annual Equity Conference on Monday January 20th at 11:00 a.m. (EST), from Sandpiper Bay, Florida. To access the Webcast of the presentation go to www.nobleresearch.com/TEN/2014.htm. An archived version of the presentation will be available at the same Internet address for 90 days following the live Webcast.
- Stifel 2014 Technology, Internet & Media Conference on Monday February 10th at 8:00 a.m. (PST) from the Fairmont Hotel in San Francisco.
Non-GAAP DetailsNon-GAAP financial measures exclude the impact from acquisition accounting adjustments to deferred revenue and costs, stock-based compensation expense, amortization of acquisition intangible assets, integration and transaction costs related to acquisitions, charge associated with the write-down of the receivable from the seller of StraTech to its current estimated realizable value and the related effects on income taxes. The company estimates this total effect will be approximately $0.10 per diluted share for the fourth quarter of 2013.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. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures. These non-GAAP financial measures facilitate management's internal comparisons to our 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. We believe 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 our financial condition and results of operations.
|RECONCILIATION BETWEEN GAAP AND NON-GAAP EARNINGS PER SHARE|
|Three Months Ended|
|Net earnings per share on a GAAP basis||$0.23 - $0.27|
|Purchase accounting adjustment to StraTech deferred revenue and cost, net||$0.00 - $0.01|
|Stock based compensation expense||$0.03 - $0.05|
|Amortization of intangible assets||$0.05 - $0.07|
|Write-down of receivable from seller of StraTech||$0.04 - $0.06|
|Income tax expense impact of Non-GAAP items||($0.05 - $0.07)|
|Non-GAAP net earnings per share||$0.33 - $0.37|
|Shares used in non-GAAP per share calculation - Basic||21,516,357|
|Shares used in non-GAAP per share calculation - Diluted||21,961,593|