Datalink Corporation Reports 2001 Third Quarter
Storage company Datalink Corporation reported that revenues for the quarter ended September 30, 2001 were $32.2 million compared to $36.3 million in the same period a year ago and up 19 percent sequentially from $27.0 million in the 2001 second quarter. Net earnings were $290,000, or $.03 per diluted share, compared to earnings of $1.6 million, or $.17 per diluted share, for the same period in the prior year. These results are consistent with guidance issued on July 18, 2001.
Greg Meland, Datalink's President and CEO, commented, "In a business environment that was extremely difficult, Datalink accomplished its goals for the quarter of; revenue growth from the June quarter, healthy margins, lower operating expenses and modest earnings. The tragic events of September 11 introduced additional delays and uncertainties for many companies which hindered our sales during the quarter. However, we were pleased with the improvement in our operating performance. Gross profit as a percent of sales reached nearly 29% for the quarter, its highest level of the year. Further, the growth of our services revenue was particularly gratifying as we continue to build our service value to our customers."
Meland continued, "Despite the sluggishness in current spending from many of our customers and prospects, we believe that advanced information strategies and technologies, such as SANs (storage area networks) are more vital than ever to an organization's information protection, productivity and effectiveness. Datalink's model of architecting information storage solutions selecting the best technologies for customers continues to be well received."