Datalink Corporation Revises Second Quarter Outlook.Business Editors 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 June 30, 2002. Datalink expects revenue for the June 2002 quarter to be between $19 and $20 million, with a loss of $.16 to $.18 per diluted share. In the same period a year ago, Datalink posted revenues of $27 million and a loss of $.07 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 second quarter expectations are a result of the continued lack of 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. With persistent economic uncertainty, many companies are freezing their information technology budgets, pending their businesses strengthening. Because many customers are opting to buy only what they require to meet current needs, both our sales and gross margins were lowered, leading to an 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 remains confident about the long-term market opportunity. He noted, "Advanced information strategies and technologies, such as networked storage, replication and information protection are vital to an organization'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. The same difficult conditions that are unfavorably impacting our operating results are also impacting the manufacturers of networked storage products. Several have stated their intention to stay away from big direct sales forces and more fully utilize companies like Datalink. We see this as a growing trend, one that creates greater sales opportunities for us." Meland said that Datalink's pipeline of expected business is higher today than in the previous quarter and that there is more business activity related to larger infrastructure designs than at any time in the last three quarters. Meland continued, "Given the second quarter results, we have continued to reduce operating costs operating costs npl → gastos mpl operacionales . Our fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). for the current quarter will total almost $1 million less than in the prior year's quarter. Our balance sheet remains very strong. Datalink has no funded debt Funded Debt Long-term debt that matures after more than one year. Notes: This is usually issued as a bond or a long-term note. See also: Bond, Debt, Maturity, Note Funded debt Debt maturing after more than one year. , approximately $10 million in cash and the capital strength and flexibility to fund the company's anticipated growth. When technology investment rebounds, we are prepared with 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 the balance of 2002. The Company plans to issue guidance in its second quarter press release, scheduled for July 17, 2002. Datalink Corporation is an information storage architect. The company analyzes, designs, implements, and supports information storage infrastructures that store, protect, and provide continuous access to information. Datalink's specialized capabilities and solutions span storage area networks, network-attached storage See NAS. , direct-attached storage Direct-attached storage (DAS) refers to a digital storage system directly attached to a server or workstation, without a storage network in between. It is a retronym, mainly used to differentiate non-networked storage from SAN and NAS. , and IP-based storage, using industry-leading hardware, software, and technical services. A live Webcast of the Datalink conference call to discuss operating results is scheduled for today, June 27, 2002 at 4:30 p.m. central time and can be heard via the Datalink Website, www.datalink.com. 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; fixed employment costs that may impact profitability if we suffer revenue shortfalls; revenue recognition policies that may unpredictably defer reporting of our revenues; 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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