Datalink, one of the few publicly listed midrange solution providers, on Thursday reported record revenue and solid earnings growth for its fiscal fourth-quarter 2013 and full-year 2013.
The Eden Prairie, Minn.-based solution provider also offered an optimistic outlook for growth in both revenue and earnings for the first quarter of 2014, with earnings potentially doubling over last year.
For the fourth quarter of 2013, which ended Dec. 31, Datalink reported revenue of $173.4 million, up 18 percent over the fourth quarter of 2012 and a new quarterly high for the company. That helped bump full-year 2013 revenue to $594.2 million, up 21 percent over the $491.2 million reported for 2012. Full-year revenue was a record for the company, Datalink said.
Datalink reported fourth-quarter 2013 earnings of $5.2 million, or 24 cents per share, up from last year's $3.2 million, or 18 cents per share, on a GAAP basis.
For all of 2013, GAAP earnings reached $10.0 million, or 52 cents per share, down from last year's $10.5 million, or 60 cents per share. Datalink said the drop in earnings on an annual basis was due to the amortization of intangible assets related to the acquisition of substantially all of the assets of StraTech, as well as a write-down of accounts receivables related to StraTech.
On a non-GAAP basis, Datalink reported fourth-quarter 2013 earnings of $7.4 million, or 34 cents per share, compared with $5.6 million, or 31 cents per share, in the fourth quarter of 2012. For all of 2013, earnings on a non-GAAP basis were $17.9 million, or 93 cents per share, up from the $15.3 million, or 88 cents per share, of a year ago.
For Datalink, while product revenue still accounts for a majority of the company's business, its services revenue is growing much faster, said CFO Greg Barnum during the company's Thursday financial conference call.
Product revenue still accounts for the majority of Datalink's business. Barnum said Datalink's product revenue for all of 2013 reached $373.0 million, compared with services revenue of $222.0 million.
However, while product revenue was up 17 percent year-over-year, Datalink saw its customer support revenue increase 26 percent and its professional services revenue increase 39 percent over the same time period, Barnum said.
NEXT: Customer, Product Mix Changing