Datalink Corp. (DTLK)

[trendmkr]

Why Big Data Needs Some Roll-Up - article discusses Datalink

http://marketexclusive.com/why-big-data-needs-some-roll-up/1106/

[lecorb]

CHART:Beautiful black hammer in the head. RSI(14)79.15. Warns a strong fall

In shorted with SPX



http://stockcharts.com/freecharts/gallery.html?s=DTLK

[lecorb]

THE CHART IS IN SHORTING RSI(14)78, overbought, Big black hammer!
Turning point in fallen $9.28

Be carefull, short sellers!


http://stockcharts.com/h-sc/ui?s=DTLK&p=D&b=5&g=0&id=p26099102557&a=264845671

[adama1984]

PPS continues to slide due to a number of internal and external factors. Mostly internal imho.

-Adama

[Art Vandeley]

http://ih.advfn.com/p.php?pid=nmona&article=60664873

[Art Vandeley]

http://ih.advfn.com/p.php?pid=nmona&article=60664873

[Art Vandeley]

This is getting interesting

[Art Vandeley]

up 3.7% today. Nice!

[Art Vandeley]

up 3.7% today. Nice!

[Det_Robert_Thorne]

Datalink Raises 2013 Q4 Revenue and EPS Guidance

Raised revenue guidance by $4M, to $174M and non-GAAP EPS to $0.33 - $0.37 from $0.24 - $0.30.

Nice.

The PR also includes dates for investor conferences they'll be attending in the next couple of months.

Datalink (DTLK), a leading provider of data center infrastructure and services, today announced that it expects to exceed its previous revenue and earnings guidance for the fourth quarter of 2013. The company now expects fourth quarter 2013 revenues to be approximately $174 million. The company previously had provided fourth quarter 2013 revenue guidance of between $160 million and $170 million.

The company now expects fourth quarter 2013 earnings per share to be in the range of $0.23 to $0.27 per share on a GAAP basis, and $0.33 to $0.37 per share on a non-GAAP basis. That is an increase over the company’s previous guidance of $0.15 to $0.21 per share for GAAP earnings and $0.24 to $0.30 per share for non-GAAP earnings.

The company will report its fourth quarter financial results and hold an investor conference call after the market closes on February 20, 2014.

Upcoming Investor Conferences
Paul Lidsky, president and CEO, and Greg Barnum, chief financial officer, are scheduled to present at the following investor conferences:

16th Annual Needham Growth Conference on Thursday January 16th at 10:00 a.m. (EST), from the New York Palace Hotel. To access the Webcast of the presentation go to wsw.com/webcast/needham64/DTLK. An archived version of the presentation will be available at the same Internet address for 90 days following the live Webcast.

Noble Financial Capital Markets’ Tenth Annual Equity Conference on Monday January 20th at 11:00 a.m. (EST), from Sandpiper Bay, Florida. To access the Webcast of the presentation go to www.nobleresearch.com/TEN/2014.htm. An archived version of the presentation will be available at the same Internet address for 90 days following the live Webcast.

Stifel 2014 Technology, Internet & Media Conference on Monday February 10th at 8:00 a.m. (PST) from the Fairmont Hotel in San Francisco.

http://finance.yahoo.com/news/datalink-updates-2013-fourth-quarter-210500603.html

[Det_Robert_Thorne]

Another solid quarterly report from $DTLK

Datalink (Nasdaq: DTLK), a leading provider of data center infrastructure and services, today reported results for its first quarter that ended March 31, 2013. Revenues for the quarter increased 12% to a record first quarter $133.6 million compared to $119.1 million for the prior-year period.

GAAP Results

On a GAAP basis, the company reported net earnings of $1.1 million or $0.06 per diluted share for the first quarter ended March 31, 2013. This compares to net earnings of $2.2 million or $0.12 per diluted share in the first quarter of 2012.

Non-GAAP Results

Non-GAAP net earnings for the first quarter of 2013 were $3.2 million, or $0.18 per diluted share, compared to non-GAAP net earnings of $2.9 million, or $0.17 per diluted share, in the first quarter of 2012. Earnings from operations for the first quarter of 2013 were $5.5 million or 4.1% of revenues, compared to $4.9 million or 4.1% of revenues in the first quarter of 2012. See “Non-GAAP Details” tables included herein for a detailed reconciliation between GAAP and non-GAAP information.

The company’s results for the quarter ended March 31, 2013, include the results of operations from the acquisition of Strategic Technologies, Inc. (“StraTech”), which was completed on October 4, 2012.

“We had a strong first-quarter performance with a sales cadence that kept pace with the fourth quarter, and significant increases in key strategic areas of the business,” said Paul Lidsky, Datalink’s president and CEO. “We continue to realize the benefits of our portfolio diversification strategy, our focus on converging data center infrastructure, and our ability to provide a complete suite of products and services that simplifies sourcing, implementation and support for enterprises that are modernizing their data center technology.”

Key year-over-year growth areas included:

* A 5% increase in product revenues, reflecting ongoing expansion in the company’s product portfolio as well as new customer acquisition;

* A 26% increase in service revenues, with services moving from 33% to 37% of the revenue mix;

* A 33% increase in virtual data center orders and 34% increase in virtual data center revenues, capitalizing on the market shift to unified data center infrastructures;

* A 37% revenue increase from Datalink’s OneCall unified support service, which enables customers to call one number for issues with platform components from multiple vendors; and

* A 240% revenue increase in managed services, achieved in part because of ongoing expansion of the company’s managed services portfolio.

Outlook

Based on the company’s current backlog and sales pipeline, the company projects revenues of $143 million to $153 million for the second quarter of 2013 compared to $120 million for the second quarter of 2012. The company expects second quarter 2013 net earnings to be between $0.09 and $0.15 per diluted share on a GAAP basis, and net earnings of between $0.22 and $0.28 per diluted share on a non-GAAP basis. This compares to net earnings of $0.18 per diluted share and $0.23 per diluted share on a GAAP and non-GAAP basis, respectively, for the same period in 2012.

Non-GAAP earnings per share exclude the effect of acquisition accounting adjustments from the StraTech acquisition to deferred revenue and costs, integration and transaction costs related to acquisitions, stock-based compensation expense, amortization of intangible assets, and the related effects on income taxes. The company estimates this total effect will be approximately $0.13 per diluted share for the second quarter of 2013.

http://www.sec.gov/Archives/edgar/data/1056923/000110465913034204/a13-10988_1ex99d1.htm

[Det_Robert_Thorne]

Needham Raises Price Target to $14

Article out within the last hour.

Here's an excerpt, with link:

Datalink Corporation (NASDAQ: DTLK) is solidly higher Monday after Needham & Company reiterated their Buy rating and raised their price target from $13 to $14 per share following a positive investors meetings with the company's CEO and CFO.

"The tone was quite positive from a DTLK perspective, reinforcing our confidence in its strategy and execution," analyst Glenn Hanus said.

http://www.streetinsider.com/Analyst+Comments/Needham+%26+Company+Lifts+PT+on+Datalink+%28DTLK%29+after+Upbeat+Meetings/8192370.html

[Det_Robert_Thorne]

I didn't look back far enough

I only looked at the last five years. The actual all time high was in March, 2000, right at the peak of the internet bubble in the NASDAQ, when DTLK hit about $35.

It ran from about $20 in Feb, 2000, to $35 in mid-March, only to fall back to the low $20s just before they filed the FY1999 10-K at the end of March.

Back then, the PE at $20 was about 20. Now, the forward PE is about $10 (I didn't use the trailing PE of 19 because it doesn't look at non-GAAP earnings).

[Det_Robert_Thorne]

Today's $11.70 close was an all-time closing high

DTLK has never closed above $11 before yesterday's $11.06 close, and it hit an intraday high of $11.29 on Aug 2, 2011.

Not only is today's intraday high of $11.71 a 52-week and all-time high, but the $11.70 close is an all-time closing high!

[Det_Robert_Thorne]

Good article about Q2 from a VAR-focused site

IMO, the company needs to see more articles like the one at the following link. It's from a news site dedicated to serving VARs, and isn't just a rehash of the press release.

It's also not a Seeking Alpha article by a self-interested blogger.

The author obviously listened to the CC, or used a transcript.

Here's an excerpt, followed by the link:

While Datalink enjoyed a 34-percent growth in revenue over last year, the quarter's revenue total was below previous guidance, said Paul Lidsky, Datalink's president and CEO, during the company's financial analyst call.

The lower-than-expected revenue resulted from a lengthening of the sales cycle, and not from a drop in large projects, Lidsky said.

"Sales cycles are lengthening because we are selling larger projects, which require a longer time," he said.

Customer demands for modernizing their data centers has not abated, Lidsky said. "It is simply taking longer," he said.

Datalink sold 24 virtualized data center projects during the second quarter which equated to revenue of $21.7 million, which is up from 17 deals worth $16.6 million in the first quarter of the year, Lidsky said.

These resulted from strong partnerships with Cisco and NetApp on their jointly-developed FlexPod converged infrastructure architecture, as well as a strong partnership with EMC on its newly-unveiled VSPEX reference architecture, Lidsky said.

Datalink was the first North American solution provider to get the FlexPod Premium Partner status, and was one of the first in the world to be certified by EMC for VSPEX, he said.

Lidsky also said that revenue from selling Cisco server and networking products rose 11 percent during the quarter over last year, while EMC-related revenue rose 66 percent over the same period.

"Both our Cisco and EMC partnerships are playing an increasing role in our data center business," he said.

http://www.crn.com/news/storage/240004439/converged-infrastructure-virtualized-data-center-business-drive-datalinks-2q-revenue-earnings.htm

[Silvr Surfr]

I bought shares today, too cheap.
Going back up IMO.

EOM

[Det_Robert_Thorne]

Totally ridiculous pounding before report

DTLK price, at $8.21, is down over 17% from the $9.95 closing price on the day they last announced earnings (after the close on April 25).

At that report, they beat on revenue, earnings and guided higher.

In the PR announcing this Thursday's quarterly CC, they didn't warn.

None of their business is in Europe or Asia, and a good portion of it is based on annual contracts, which they show as Deferred Revenue on the Balance sheet.

Yet the stock is getting smashed today.

Pretty effin' ridiculous.

[Det_Robert_Thorne]

Decline due to addition to Russel 3000?

DTLK is being added to the Russell 3000 and Global indexes today.

http://www.russell.com/indexes/tools-resources/reconstitution/reconstitution-changes.asp

We could be seeing the push lower as an effort to accumulate at a better price.

[Det_Robert_Thorne]

Pretty much able to drive it at will

Whoever is driving the algorithmic trading of DTLK stock is pretty much able to push it around at will.

Many times, it doesn't matter what the rest of the market is doing, or how other data-related stocks are performing.

[Det_Robert_Thorne]

Cantor and FBN Securities Raise Targets

They both raise targets, while maintaining prior ratings

April 26 (Reuters) - Datalink Corp :

* Cantor raises Datalink Corp price target to $11.50 from $10.50;

rating buy

http://www.cnbc.com/id/47187129

April 26 (Reuters) - Datalink Corp :

* FBN Securities raises Datalink Corp price target to $15 from $12.5;

rating outperform

http://www.cnbc.com/id/47186633

[Det_Robert_Thorne]

4/25/12: Datalink Reports Today After the Market Closes

From their April 10, 2012 PR:

Datalink (Nasdaq: DTLK - News), a leading provider of data center infrastructure and services, announced today that it will issue a news release Wednesday April 25th, 2012 at approximately 3:00pm central time to announce first quarter operating results for 2012.

Datalink will hold a conference call shortly afterward at 4:00pm central time during which time Datalink’s president and chief executive officer, Paul Lidsky, and vice president of finance and chief financial officer, Greg Barnum, will discuss company results and provide a business overview. Participants can access the conference call by dialing [phone]. Participants will be asked to identify the Datalink conference call and provide the designated identification number (69217552). A slide presentation and live Webcast of the conference call can be heard via Datalink’s Investor Relations website at www.datalink.com.

http://finance.yahoo.com/news/datalink-2012-first-quarter-operating-203800545.html

The webcast, which begins at 5PM EDT (4PM CDT and 2PM PDT) can be found at the following link:

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=65517&eventID=4751861

[Silvr Surfr]

I dumped a bunch of shares, too stagnate right now. Might buy back, if it drops significantly.

[Det_Robert_Thorne]

Looks like someone's holding it down

After the run up from the $8.60s to the $9.50 range, it looks like it's being held back, either for consolidation, or perhaps because whoever ran it up is offloading shares bought lower, or building a short position to run it back down before they report in mid-late April.

Annoying to see it stuck at one level for so long, but that's the way it is.

[Silvr Surfr]

Stock oversold IMO.
Should see an bullish trend if the market does not correct more.

[Det_Robert_Thorne]

Interesting positive close on down-market day

DTLK was down most of the day, along with the market, then at about 2:28PM EST, roughly 30K shares traded in a couple of minutes, and the stock began to move up into the close.

IMO, someone completed their acquisition (for short covering or for a new long position,) then moved the stock up for their next sell/short cycle.

[Det_Robert_Thorne]

No, it was intentional, Silvr Surfr

He and I have a history, and he followed me here for what he laughably thinks is "payback".

[Silvr Surfr]

I believe the maestro composed on the wrong board.

[Det_Robert_Thorne]

Please explain your DD, Maestro.

Who are these Chinese competitors you speak of?

I'd also like to know how you value a company with zero debt, a 2011 EPS of $0.80 and an anticipated 2012 EPS of $0.90 at $1.50.

Dazzle us.

[Silvr Surfr]

LOL I think you better do your research on this company again. It seems you have the wrong ticker symbol.

Unless you are shorting this stock, then nice try shorty! LOL

[maestro_of_Ihub]

You mean $1.50 right!!

this company is getting crushed by Chinese competition!!

You need to do some DD right now!!

GL2U!!

I spent a week looking at this one, and I wouldn't put a dime in harms way on this!!

WAY MORE OPPS out there with better risk/rewards!!

maestro

[Silvr Surfr]

$10.50 complete, next stop $11.
Lets roll!

[Silvr Surfr]

Next stop $10.50!
Go DTLK!

[Det_Robert_Thorne]

Good move on your part!

I made three sales today, at $9.79, $9.97, and $10.13. Each sale was at least a 10% gain from the purchase price, and the shares were bought on margin, so selling early doesn't bother me too much, as it reduces my margin balance, and I still have a crazy number (for me) of shares remaining.

Had another sale set for $10.22, but it missed executing by a penny. With Cisco's results after the close, DTLK is at $10.27 in the AH, so maybe we'll see a little more tomorrow. Then again, CSCO is down in a bit in the AH, because the guidance was roughly in line with the estimates.

[Silvr Surfr]

Sold a block today at $10.07, too much profit to ignore. Still hold a large position. Be significant if the pps holds above $10 tomorrow.

[Silvr Surfr]

Busting through $10 was a nice crack in resistance. Should run higher now. Profit time!
I am averaging around $7.40 share.

[Det_Robert_Thorne]

Broke $10. Good call Silvr Surfr!

It was a few days late, but $10.05 as I write this.

BTW, just as I was buying small quantities at intervals down into the $7s, I've been selling in similar quantites on the way back up.

Sold a few more at $9.97.

[Silvr Surfr]

Pps still climbing, could touch $10 soon.

[Det_Robert_Thorne]

I doubt it. Algorithm still in charge.

A lot of the trading is someone running an algorithm, and unless there is significant news from the company to drive lots of volume, that program is in charge.

It will get to $10, but only on the program's schedule.

[Silvr Surfr]

Next stop $10. All aboard!

[Silvr Surfr]

If someone shorts this stock, they will get burned. This is a growth company with great earnings. Aquisition of Midwave should help propel this company for increase sales. We should expect to see +5 basis points above expectations on next earnings report. Accumulate.

[Det_Robert_Thorne]

Good couple of days. Probably consolidating now

Datalink up more than 8% since last Friday, so I think we're seeing a little consolidation today.

IMO, someone was accumulating throughout last week, holding the price in a tight range around $8.75 until they got their fill. Don't know if it was to establish a position or cover a short.

[Silvr Surfr]

I was in a while back when IPO initiated. Got out and did not get back in until 2010. Been trading in and out. I have accumulated 2k shares to date and see this as a LT hold if pps holds above $6.5. Lots of growth potential for this company.

[Det_Robert_Thorne]

I've been in DTLK since 2007

It kind of sat there doing nothing for quite awhile, but I added shares between $3 and $4 in 2010, so last year was really good for me. Those shares were all sold in 2011 in the $9.50 - $11 range, then rebuilt a small LT position when it fell back into the mid-$7s, but am also short-term trading the swings.

IF they continue on their growth path, I have no reason to think it won't eventually hit the mid-teens.

[Silvr Surfr]

I did not know if it was related to something else that I did not know about.
We should see another good financial result. Great stock to own LT.

[Det_Robert_Thorne]

No talk of financials before actual report

Their Q4 ended at the end of December, and they plan to report the results in mid-February, so they won't talk about financials until then. They might not even put out other news that might effect the stock price.

A lot of companies do these quiet periods before earnings.

[Silvr Surfr]

What is the quite period about?

[Det_Robert_Thorne]

FWIW, I think DTLK's under accumulation

Not sure if it's accumulating for the purpose of short covering or just accumulating ahead of the report, but there's an algorithm that been running this stock that's really apparent on low volume days.

It's been holding the stock in a very tight range since the Needham conference last week.

[Det_Robert_Thorne]

Datalink's recent presentation at the Needham Growth Conference

Good presentation about the company, but because they're in the quiet period, no mention at all of Q4 results, not even the guidance provided in the Q3 report.

I believe that CEO Paul Lidsky said they would report on Feb 16:

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=65517&eventID=4695373

[Silvr Surfr]

Chaaa ching $

[Silvr Surfr]

BUY DTLK thank me later!