Datalink reports 2011 net income of $9.8 million
- Article by: WENDY LEE
- Star Tribune
- February 16, 2012 - 10:09 AM
Datalink Corp. reported Thursday its 2011 net income was $9.8 million or 61 cents a share, the highest earnings in the company's history.
Sales were $380 million, up 29 percent. That amount was also a quarterly record for the Chanhassen-based firm, which provides data-center infrastructure and services. Business was boosted with more product sales in the fourth quarter and an increase in multi-million dollar customer accounts among Global 1000 companies last year, Datalink said.
In 2010, the company reported earnings of $2.3 million or 18 cents a share.
"Datalink's collective accomplishments during 2011 reaffirm our successful execution on our acquisition and data center strategies," said CEO Paul Lidsky in a statement.
For the fourth quarter, the company said its net income increased 8 percent to $2.6 million.
Sales were $114.7 million, up 26 percent. Under non-GAAP results, the company met analysts' earnings expectations.
In October, the company acquired its Eden Prairie-based competitor Midwave Corp. in a $17.6 million deal. The purchase doubled the size of Datalink's consulting services team.
Lidsky said the company's strong financial performance has accelerated sales in the first months of the first quarter.
The company said it expects sales in the first quarter to be $108 million to $116 million, compared to $85.7 million in 2011. Net earnings are estimated to be 7 cents to 12 cents per share in the first quarter, Datalink said.
Datalink's stock was trading at $9.60, down 55 cents, early Thursday morning.
Wendy Lee • 612-673-1712
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