Shawn O’Grady to Lead Also Sales and Services at Datalink

Datalink announced that Shawn O’Grady, 47, will lead its nationwide sales and services organization.

O’Grady will continue to serve as executive vice president of strategy and field operations, while also overseeing the company’s sales and professional services operations in 32 locations across the United States.

“Shawn is a proven executive. He has a strong track record of creating successful solutions teams, developing both products and services for the enterprise markets, and understanding the complete solutions approach. Leading our sales and services efforts is a natural extension of his abilities,” said Paul Lidsky, president and CEO of Datalink. “As we continue to leverage the benefits from the integration of Datalink and Incentra, we feel combining sales and services with strategy and field operations, under a proven leader, will strengthen the execution of our data center solutions strategy. Since 2009, Datalink has significantly enhanced its ability to provide customers with solutions that span the data center. We now deliver products and services that solve the complexities of a data center, which in the long run delivers increased productivity and efficiency for our customers’ IT operations. With more than 20 years of experience, Shawn is an integral part of ensuring that Datalink’s operations are continuously improving and that we’re expanding relationships with current and prospective clients.”

O’Grady joined Datalink after four years as president and chief operating officer of Incentra, where he was responsible for the day-to-day management of the business, including sales, service delivery, and field and headquarters operations. During his tenure, through both organic and acquired growth, sales grew from $13 million in 2004 to $212 million in 2008, which was Incentra’s last full year of operations. Previously, he spent eight years with Siemens AG, where he served as senior vice president of Siemens Business Services where he earned a reputation for success in strategy, sales and service delivery, as well as in organizational and process improvement. He holds a bachelor’s degree in electrical engineering from the University of California at Irvine.

Said O’Grady: “Datalink has an accomplished sales and services team. I’m excited to find ways to further maximize our efforts in the field, strengthen efficiencies and ultimately improve the customer experience. I’m grateful for the trust and confidence management and the board have placed in me.”

Robert Beyer, who previously served as Datalink’s executive vice president of sales and services, has left the company to pursue outside interests. Datalink will incur a charge of $400,000, or $0.02 per diluted share, in the 2010 third quarter related to his departure.

Company Reaffirms Second-Quarter Outlook
Datalink reaffirmed its outlook for the second quarter ended June 30, 2010. For the quarter, the company expects to be towards the upper end of its previously reported $68 million to $72 million revenue range.

Datalink also indicated that it anticipates earnings per diluted share to be in the middle of its previously issued range of a $0.02 net loss to net earnings of $0.02 on a GAAP basis, and net earnings of $0.04 to $0.08 per diluted share on a non-GAAP basis. This compares to revenues of $43.7 million with GAAP earnings of $0.02 per diluted share and non-GAAP earnings of $0.05 per diluted share in the second quarter of 2009. The company’s backlog at the end of the second quarter is approximately $44.4 million compared to $43.4 million at the end of the first quarter of 2010. The company will report full second quarter results on July 21, 2010.

Non-GAAP earnings per share exclude the effect of purchase accounting adjustments from the Incentra acquisition to deferred revenue and costs, integration and transaction costs related to the acquisition, stock-based compensation expense, amortization intangible assets, and the related effects on income taxes. The company estimates this total effect will be approximately $.06 per diluted share for the second quarter of 2010.