Datalink Corporation Revises Fourth Quarter Outlook.Business Editors MINNEAPOLIS--(BUSINESS WIRE)--Dec. 20, 2001 Datalink Corporation Datalink Corporation (NASDAQ: DTLK) is an American data storage corporation with operations throughout the United States. The company engages in the design, installation, and support of data storage infrastructures that store, protect, and provide continuous access to (Nasdaq: DTLK), a premier independent information storage architect, today presented a revised outlook for the period ending December 31, 2001. Datalink expects revenue for the December 2001 quarter to be between $24-$26 million, with a loss of $.12-$.15 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. In the same period a year ago, Datalink posted revenues of $38.9 million and earnings of $.06 per diluted share. Greg Meland, Datalink's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented, "Our lower fourth quarter expectations are a result of the decline in overall capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. by our customers. An uncertain economic environment was made worse by the tragic events of September 11. This led many companies to delay the amount they spend on technology initiatives. While our business activity level has recently increased, it came too late to have a significant impact on our current quarter." Meland underscored his optimism about information storage growth. He noted, "We strongly believe that the need for networked storage solutions has never been greater. Advanced information strategies and technologies, such as networked storage, replication and information protection are vital to a company's information fabric. Our opportunity is the widespread acceptance of networked storage technologies coupled with relatively low market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" . Datalink has the capabilities to seize this opportunity. Unfortunately, many companies have decided in the near term not to move forward with the adoption of more significant enterprise networked storage infrastructures. Opting in many cases to buy only what is needed to scale and support their current needs. These factors have greatly contributed to our lower sales and gross margins, leading to a quarterly operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. ." Meland continued, "In response to this difficult operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. , we have continued to reduce our operating costs operating costs npl → gastos mpl operacionales in all areas. Our balance sheet remains very strong. Datalink has almost no debt and has the capital strength and flexibility to fund our anticipated growth. Our top objective is to generate profitable growth. Near-term, we expect the business climate to stabilize stabilize See peg. and the economy to gradually improve in 2002. We have the trained sales, engineering and support personnel on board to create networked storage solutions for the marketplace." Due to uncertain economic conditions, Datalink declined at this time to issue new operating results guidance for 2002. The Company plans to issue guidance in January 2002. Datalink Corporation, based in Minneapolis, Minnesota “Minneapolis” redirects here. For other uses, see Minneapolis (disambiguation). Minneapolis (pronounced IPA: /ˌmɪniˈæpəlɪs/) is the largest city in the U.S. , is the nation's leading independent architect of enterprise-class information storage infrastructures. As an independent, Datalink designs, builds, and supports information storage architectures using the best possible technologies. Datalink's customized storage infrastructures ensure information availability, storage, protection, and continuity for clients. A live webcast of the Datalink conference call to discuss the revised fourth-quarter guidance is scheduled today, December 20, 2001 at 4:00 P.M. Central Time and can be heard via the Datalink website, www.datalink.com. An audio replay will be available through December 27, 2001. To listen to the audio replay, please dial (800) 839-6713. The pass-code for the replay is 4744690. A replay is also available via webcast on Datalink's website. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . This press release contains forward-looking statements, 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 conditions; competition and pricing pressures and timing of our installations that may adversely affect our revenues and profits; our ability to hire and retain key technical and other personnel; our dependence on key suppliers; the strain placed on our resources by growth and expansion; our ability to adapt to rapid technological change; risks associated with possible future acquisitions; fluctuations in our quarterly operating results; future changes in applicable accounting rules; and volatility in our stock price. |
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