We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : DataLink

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: bob gauthier who wrote (31)8/31/2000 4:14:42 PM
From: bob gauthier  Read Replies (1) of 48
Datalink Corp. has added a News Release to its Investor Relations web site.

For a complete listing of our News Releases visit:

Title: Datalink Corporation Revises Financial Results
Date: 8/31/00

Revision Increases 2000 EPS and Reduces Pre-2000 Operating Results
Conference Call is Scheduled at 4:00pm Central Standard Time
today, August 31, 2000 to discuss revision.
Datalink Corporation (NASDAQ: DTLK), a premier independent
provider of networked data storage solutions, reported that it
will revise its pre-2000 accounting for maintenance contracts.
This change was previously reported as a cumulative effect of a
change in accounting principle as of January 1, 2000. The
restatement will increase net income for the first six months of
2000 by $574,000, or $.06 per diluted share. The revision will
increase net income in 1999 (including a one time tax benefit) and
reduces net income in 1998 and 1997.
Daniel J. Kinsella, Datalink's Chief Financial Officer stated
"Since we already adopted the change in accounting for our
maintenance contracts in the first quarter of 2000, this change
will have no effect on our previously reported 2000 revenues,
operating income, total stockholders' equity or cash flows. Our
2000 net income improves because we will reduce our previously
reported charge from the cumulative effect of our 2000 change in
accounting policy. Prior to 2000, we recognized revenues and
expenses associated with maintenance contracts at the beginning of
the contract period with the customer. Beginning in 2000, we
modified our accounting policy to amortize contract revenue and
direct expenses over the life of the contracts, which are usually
12 months in duration. At the request of the Securities and
Exchange Commission staff, and with the concurrence of our
auditors, PricewaterhouseCoopers LLP, we decided that we should
apply the new accounting policy retroactively."
Kinsella further commented, "To reflect the change, we will amend
our 1999 annual report and our 2000 quarterly reports. In addition
to increasing earnings in the first half of 2000, the change
increases net income and income per diluted share in 1999 by
$64,000, or $.01 per diluted share including a one time tax
benefit of $357,000 or $.05 per diluted share resulting from this
change and our change to C-corporation status. The change reduces
net income in 1998 by $383,000 or $.05 per diluted share, and in
1997 by $143,000, or $.02 per diluted share."
Kinsella concluded "Based on recent direct communication with the
SEC staff, we believe that with this revision we have complied
with current guidance on revenue recognition."
Datalink Corporation, based in Minneapolis, Minnesota, is a
premier independent provider of networked data storage solutions
for open systems computing environments. Datalink develops
solutions that are designed to store, access and protect business
critical information using best of breed technologies and
professional services. Datalink's multi-tiered professional
services organization delivers a comprehensive suite of services,
including analysis, design, integration, implementation, training,
technical support and maintenance.
A conference call will be held at 4:00pm Central Standard Time
today, August 31, 2000 to discuss the revision. To participate,
please dial (800) 603-4337. Pass-code is 204598. An audio replay
will also be available until 5:00pm Central Standard Time,
September 7, 2000. To listen, please dial (800) 642-1687. Pass-
code is 204598. A replay is also available via webcast on
Datalink's website,

Datalink Corporation
Schedule of Impact of Revision
(in '000's except for per share amounts)

As Previously
Six Months Ended June 30, 2000 Reported As Revised

Revenues $ 62,909 $ 62,909

Income before cumulative effect
of a change in accounting
principle $ 2,325 $ 2,325

Cumulative impact of a change
in accounting policy, net of
income taxes $ (1,327) $ (753) $

Net income $ 998 $ 1,572 $

Diluted income per share before
cumulative effect of a change in
accounting principle $ 0.25 $ 0.25

Diluted loss per share from the
cumulative effect of a change in
accounting principle $ (0.14) $ (0.08) $

Diluted net income per share $ 0.11 $ 0.17 $

Year Ended December 31, 1999

Revenues $ 118,897 $ 116,603

Net income (1) $ 7,308 $ 7,372 $

Diluted Net Income Per Share (1) $ 0.98 $ 0.99 $

Year Ended December 31, 1998

Revenues $ 87,952 $ 86,092

Net income $ 6,531 $ 6,148 $

Diluted Net Income Per Share $ 0.93 $ 0.88 $

Year Ended December 31, 1997
Revenues $ 71,255 $ 70,419 $

Net income $ 6,076 $ 5,933 $

Diluted Net Income Per Share $ 0.88 $ 0.86 $

(1) 1999 net income and diluted net income per share, as revised,
includes tax benefit resulting from this accounting change of
$357, or $0.05 per diluted share. The Private Securities
Litigation Reform Act of 1995 provides a "safe harbor" for certain
forward-looking statements. This press release contains forward-
looking statements, which reflect our views regarding future
events and financial performance. These forward-looking statements
are subject to certain risks and uncertainties, including those
identified below, which could cause actual results to differ
materially from historical results or those anticipated. The words
"aim," "believe," "expect," "anticipate," "intend," "estimate" and
other expressions which indicate future events and trends identify
forward-looking statements. Actual future results and trends may
differ materially from historical results or those anticipated
depending upon a variety of factors, including, but not limited
to: our ability to hire and retain key technical and other
personnel; competition and pricing pressures that may adversely
affect our revenues and profits; the level of continuing demand
for data storage; our dependence on key suppliers; the strain
placed on our resources by growth and expansion; our ability to
adapt to rapid technological change; risks associated with
possible future acquisitions; fluctuations in our quarterly
operating results; future changes in applicable accounting rules;
and volatility in our stock price.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext