Datadobi

Datalink: Fiscal 3Q16 Financial Results

Sales decreasing before acquisition by Insight Enterprises
This is a Press Release edited by StorageNewsletter.com on 2016.11.11

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(in $ million) 3Q15 3Q16 9 mo. 16 9 mo. 16
Revenues 198.0 184.0 556.0 547.8
Growth   -7%   -1%
Net income (loss) (1.3) (0.5) (2.0) (4.0)

Datalink Corp. reported results for its third quarter and nine months that ended September 30, 2016.

Revenues for the quarter ended September 30, 2016, decreased 7% to $184.0 million compared to $198.0 million for the quarter ended September 30, 2015. Included in the third quarter of 2016 is approximately $10.3 million of fulfillment revenues compared to $22.3 million in the third quarter of 2015. Without these fulfillment revenues, which the company has now discontinued, revenue would have decreased 1% from the comparable quarter.

Revenues for the nine months ended September 30, 2016, decreased 1% to $547.8 million compared to $556.0 million for the nine months ended September 30, 2015.

GAAP Results
On a GAAP basis, the company reported net earnings of $546,000 or $0.03 per diluted share for the third quarter ended September 30, 2016. This compares to net earnings of $1.3 million or $0.06 per diluted share in the third quarter of 2015. For the nine months ended September 30, 2016, the company reported net earnings of $4.0 million or $0.18 per diluted share, compared to net earnings of $2.0 million, or $0.09 per diluted share, for the nine months ended September 30, 2015.

Non-GAAP Results
Non-GAAP net earnings for the third quarter of 2016 were $2.6 million, or $0.12 per diluted share, compared to non-GAAP net earnings of $3.3 million, or $0.15 per diluted share, in the third quarter of 2015. For the nine months ended September 30, 2016, the company reported non-GAAP net earnings of $7.9 million, or $0.37 per diluted share, compared to non-GAAP net earnings of $8.3 million, or $0.37 per diluted share, for the nine months ended September 30, 2015.

Acquisition
The company announced that it has entered into a definitive merger agreement with Insight Enterprises, Inc. pursuant to which Insight would acquire Datalink for $11.25 per share of common stock in cash. As a result of this announcement, the company is cancelling its earnings conference call.

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