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Datalink Corporation Message Board

  • carp_slayer carp_slayer Oct 4, 2012 4:06 PM Flag

    Lowered Third Quarter Guidance Update & Acquisition Details

    See news for the rest of it-

    Datalink purchased StraTech for approximately $13.2 million in cash and the issuance of 269,802 shares of Datalink common stock, assumed approximately $20.8 million of StraTech’s liabilities and acquired approximately $16.0 million of assets, subject to a final audit expected to be performed within 90-120 days after the closing.

    With the addition of StraTech, Datalink will be positioned to close 2012 with an anticipated annualized run rate of more than $500 million and a workforce of over 450 employees.

    Datalink anticipates that, based on its internal projections, the transaction will become accretive to net income within one quarter. Datalink will record a charge associated with the acquisition in the fourth quarter of 2012 of approximately $300,000, or $0.01 per fully diluted share. Datalink expects the full effect of cost synergies to take effect in the first quarter of 2013.

    3Q 2012 Guidance
    Today Datalink also lowered its guidance for the third quarter of 2012. Datalink expects third quarter 2012 revenues to be in the range of $105 million to $106 million. This compares to revenues of $90.1 million in the third quarter of 2011. Datalink expects earnings per share to be in the range of $0.10 per share to $0.11 per share on a GAAP basis; and in the range of $0.14 per share to $0.15 per share on a non-GAAP basis. This compares to GAAP earnings of $0.16 per share and non-GAAP earnings of $0.20 per share in the third quarter of 2011.

    “We continue to see strong demand and a growing pipeline for our data center solutions, especially virtualized data center solutions and big data, as well as all aspects of storage. However, we also continue to see our customers remain cautious regarding large capital expenditures, especially with the uncertainty surrounding the current economic environment,” Lidsky said. “As a result, we saw expected contracts push out as much as 90 days or more. This customer behavior has caused us to miss our previous guidance”

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