Blaming on longer sales cycles, but pipeline grows
“We turned in a solid revenue and earnings performance in the first half of 2012, and our pipeline continues to grow because of rising demand for modern data center infrastructures. At the same time, longer sales cycles that we began to see the last month of the quarter impacted our second quarter revenue. Companies are scrutinizing large capital expenditures more carefully than in the past, and we expect that pattern to continue for the remainder of the year,” said Paul Lidsky, Datalink’s president and CEO. “We have taken that into account in our third-quarter guidance.”
The midpoint of the Q3 non-GAAP EPS moved downwards $0.015, to $0.225 from the current analyst estimates of $0.24.
This isn't good, but this company is doing far better than most if they're looking at what is essentially flat sequential quarters, but up 30% YoY, especially with the current state of the world economy.
While DTLK has no customers in Europe, it's possible that some of their U.S. clients have European ties, and that's slowing things down a bit.
Based on the company’s current backlog, sales pipeline and lengthening sales cycles, the company projects revenues of $117 million to $122 million for the third quarter of 2012 compared to $90.2 million for the third quarter of 2011. This represents an increase in expected revenues of between 30% and 35%. The company expects third quarter 2012 net earnings to be between $0.16 and $0.21 per diluted share on a GAAP basis, and net earnings of between $0.20 and $0.25 per diluted share on a non-GAAP basis. This compares to net earnings of $0.16 per diluted share and $0.21 per diluted share on a GAAP and non-GAAP basis, respectively, for the same period in 2011.
Non-GAAP earnings for the 3rd quarter called between 20-25 cents vs current mean analyst estimate of 24.3 cents.
3rd quarter revenue guided in the range of $117-122 Million vs mean analyst estimate of $127 million.
I would argue that the market had / has priced in much worst performance... up from here... Trying to get some of those sub 8 shs on the AH bid that TDA is showing... ha, no one selling that low... good reason why...