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Datalink (DTLK) -8.7% after warning it expects Q3 revenue of $105M-$106M and EPS of $104M-$105M...

Datalink (DTLK) -8.7% after warning it expects Q3 revenue of $105M-$106M and EPS of $104M-$105M and EPS of $0.14-$0.15, below a consensus of $120.4M and $0.23. The data center services firm blames soft customer capex (ed: that sounds strange at a time when data center construction is soaring). Datalink also announces it has closed its ~$16M acquisition of rival StraTech - the deal adds $65M in annualized revenue.
Comments (1)
  • Bob Curtin
    , contributor
    Comments (71) | Send Message
     
    I am always amazed at the poor quality of news item commentaries. Can't imagine how anyone who read the news release concludes that the "firm blames soft customer capex (ed: that sounds strange at a time when data center construction is soaring).".
    As they warned in their 2nd quarter earnings call, and re-iterated in the warning yesterday that with the current economic environment they are seeing customers taking longer to make final buy decisions. This is a widespread commentary in this industry.
    In fact, if quarter 4 sees the normal budget flush that quarter may well be a blockbuster.
    5 Oct 2012, 06:55 AM Reply Like
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