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The server and networking revenue both have increased substantially since the acquisition of Incentra, and reflect Datalink's transformation from a storage solution provider to a provider of data center infrastructure and services, said Datalink President and CEO Paul Lidsky.
Datalink has seen a gradual uptick in customer spending this year as evidenced in an increase in its business pipeline and a doubling in the number of deals valued over $500,000 compared to last year, Lidsky said.
Growth should continue as Datalink continues to expand beyond its traditional storage focus, Lidsky said.
He said Datalink will consider itself successful if it finishes 2010 with over $10 million in networking business, as it will show the company is moving in the right direction. "We have modest designs on server and networking this year because of the heavy lifting needed to get started," he said.
Looking forward, Datalink expects revenue of between $68 million and $72 million during the third quarter, with earnings per share expected to be between a loss of 1 cent per share and a profit of 3 cents per share. This compares to the $42.7 million in revenue and the loss of 1 cent per share it reported in the third quarter of 2009.