Datalink (DTLK) Slashes Q4 Guidance

January 5, 2009 4:42 PM EST

Datalink Corporation (Nasdaq: DTLK) cuts its Q4 sales guidance from $49-$53 million to about $48 million, versus the Street consensus of $51 million. For non-GAAP EPS, Datalink moves its guidance from $0.10-$0.14 to $0.07-$0.08, versus the consensus of $0.12.

"Although we continued to see reasonable bookings activity and customer spending levels in the fourth quarter, we received many of the orders later in the quarter than we had anticipated, which did not allow us time to ship, install and test the solutions. As a result, we were not able to recognize the revenue on these projects by December 31, and therefore we expect Datalink's revenue and earnings for the fourth quarter to be below our October guidance," commented Charlie Westling, Datalink's president and CEO.

"The current economic challenges are impacting customer spending decisions. However, we still believe that the long-term trends for storage growth remain compelling, as businesses generate more data in multiple formats, requiring updated storage products, services and solutions. While the fourth quarter shortfall caused by the timing of orders was disappointing, our backlog entering the first quarter of 2009 is approximately $33 million, a record for Datalink. This compares to $31 million of backlog entering the 2008 fourth quarter."

Datalink Corporation engages in the design, installation, and support of data storage systems that store, manage, and protect business information.

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