Datalink Corporation Revises Second Quarter 2001 Outlook.Business Editors & Technology Writers MINNEAPOLIS--(BUSINESS WIRE)--June 21, 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 its second quarter results for the period ending June 30, 2001. Datalink expects revenue for the June quarter of 2001 to be approximately $26-$30 million and a loss of $.06 to $.11 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 $34.9 million and earnings per diluted share of $.15. 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 expectations for the second quarter reflect an extremely difficult environment for 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. . The current level of economic uncertainty has led to an overall reduction in capital spending including spending for technology. While our pipeline of anticipated sales has remained at high levels, we are experiencing many instances where our customers are postponing their spending decisions." Meland said that information storage growth is not diminishing di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. . "Advance information strategies and technologies, such as SAN's (storage area networks) are still vital to our customers' ability to use information. "For many organizations, these technologies present an opportunity for improved productivity through more efficient management of information. Datalink's model of architecting information storage solutions using the best technologies for customers continues to be well received. In 2001, we have added significant new customers. These include commitments for new SAN implementations at a major financial institution in the Northeastern U.S. and a large health care information management company in the southeastern U.S. totaling over $4 million. Additionally, we recently completed a $600,000 NAS (1) See network access server. (2) (Network Attached Storage) A specialized file server that connects to the network. A NAS device contains a slimmed-down operating system and a file system and processes only I/O requests by supporting the popular (networked attached storage) project with an industrial manufacturer in the Midwest. Even with the reduced estimates for our second quarter, our year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. sales will grow by approximately 10% over the previous year." Meland said, "While industry experts are projecting the demand for data storage products to grow, we expect the near term capital spending environment to remain difficult. We have taken steps to lower our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. by scaling back hiring plans, reducing discretionary spending and limiting travel. We plan to emerge from this difficult period well positioned to take advantage of the growing opportunity in the data storage markets. The near term market conditions do not diminish our long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. confidence for Datalink's success. We continue to have a strong balance sheet with virtually no debt and have the capital strength and flexibility to fund our growth initiatives. Pending further consideration of the impact of current economic conditions, Datalink declined at this time to issue new operating results guidance for the remainder of calendar 2001. The Company plans to issue revised guidance at the time of its second quarter earnings release which is scheduled for July 18, 2001. 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 operating results is scheduled today, June 21, 2001 at 4 p.m. Central Time and can be heard via the Datalink website, www.datalink.com. An audio replay will be available through June 28, 2001. To listen to the audio replay, please dial (800) 839-6713. The pass-code for the replay is 431720. 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; our ability to hire and retain key technical and other personnel; competition and pricing pressures and timing of our installations that may adversely affect our revenues and profits; 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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