Datalink Q2 Earnings

DTLK announced Q2 results last night. Looks like demand for data storage continues to be good. Q2 revenues were up 23% and they made $.10 per share (non-GAAP, but fully taxed) up from a essentially breakeven last year. Outlook for Q3 is good also-$49-$53 million in revenue and $.09-$.13 per share non-GAAP EPS.

Our valuation increased to $10.49 per share from $9.97. Cash of $28 million is $2.24 per share and was 45% of yesterdays closing stock price of $4.95. We are up 16% on DTLK. We like the stock, but if it should hit $6, we would sell for a 40% gain.

In this market, gains have been hard to come by.


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