DTLK » Topics » Results of Operations

These excerpts taken from the DTLK 10-K filed Mar 26, 2009.

Results of Operations

        We ended 2008 with a record backlog of $33.0 million, which represents firm orders expected to be recognized as revenue in the next 90 days. However, we are seeing the negative impact of the worldwide economic downturn affect many of our customers, resulting in greater scrutiny given to storage spending projects and providing us with less visibility into their purchasing plans. We have also had some customers decide to significantly delay the implementation of projects for which they have already purchased and paid for the product. We cannot predict what impact these economic uncertainties will have on our profitability going forward.

        Our sales for 2008 increased $17.8 million or 10.0% to $195.6 million for 2008 as compared to 2007. Our gross margin increased $7.4 million or 16.2% to $52.7 million for 2008 as compared to 2007. Our earnings from operations increased $3.9 million from $1.2 million in 2007 to $5.1 million in 2008. The following table shows, for the periods indicated, certain selected financial data expressed as a percentage of net sales.

 
  Years Ended December 31,  
 
  2008   2007   2006  

Net sales

    100.0 %   100.0 %   100.0 %

Cost of sales

    73.1     74.5     73.9  
               

Gross profit

    26.9     25.5     26.1  
               

Operating expenses:

                   
 

Sales and marketing

    11.9     12.4     10.9  
 

General and administrative

    6.1     6.6     7.2  
 

Engineering

    5.9     5.2     4.2  
 

Integration costs

        0.2      
 

Amortization of intangibles

    0.4     0.4      
               

Total operating expenses

    24.3     24.8     22.3  
               

Operating earnings

    2.6 %   0.7 %   3.8 %
               

19


Results of Operations



        We ended 2008 with a record backlog of $33.0 million, which represents firm orders expected to be recognized as revenue in the
next 90 days. However, we are seeing the negative impact of the worldwide economic downturn affect many of our customers, resulting in greater scrutiny given to storage spending projects and
providing us with less visibility into their purchasing plans. We have also had some customers decide to significantly delay the implementation of projects for which they have already purchased and
paid for the product. We cannot predict what impact these economic uncertainties will have on our profitability going forward.



        Our
sales for 2008 increased $17.8 million or 10.0% to $195.6 million for 2008 as compared to 2007. Our gross margin increased $7.4 million or 16.2% to
$52.7 million for 2008 as compared to 2007. Our earnings from operations increased $3.9 million from $1.2 million in 2007 to $5.1 million in 2008. The following table
shows, for the periods indicated, certain selected financial data expressed as a percentage of net sales.










































































































































































































































 
 Years Ended December 31,  
 
 2008  2007  2006  

Net sales

  100.0% 100.0% 100.0%

Cost of sales

  73.1  74.5  73.9 
        

Gross profit

  26.9  25.5  26.1 
        

Operating expenses:

          
 

Sales and marketing

  11.9  12.4  10.9 
 

General and administrative

  6.1  6.6  7.2 
 

Engineering

  5.9  5.2  4.2 
 

Integration costs

    0.2   
 

Amortization of intangibles

  0.4  0.4   
        

Total operating expenses

  24.3  24.8  22.3 
        

Operating earnings

  2.6% 0.7% 3.8%
        



19









Results of Operations



        We ended 2008 with a record backlog of $33.0 million, which represents firm orders expected to be recognized as revenue in the
next 90 days. However, we are seeing the negative impact of the worldwide economic downturn affect many of our customers, resulting in greater scrutiny given to storage spending projects and
providing us with less visibility into their purchasing plans. We have also had some customers decide to significantly delay the implementation of projects for which they have already purchased and
paid for the product. We cannot predict what impact these economic uncertainties will have on our profitability going forward.



        Our
sales for 2008 increased $17.8 million or 10.0% to $195.6 million for 2008 as compared to 2007. Our gross margin increased $7.4 million or 16.2% to
$52.7 million for 2008 as compared to 2007. Our earnings from operations increased $3.9 million from $1.2 million in 2007 to $5.1 million in 2008. The following table
shows, for the periods indicated, certain selected financial data expressed as a percentage of net sales.










































































































































































































































 
 Years Ended December 31,  
 
 2008  2007  2006  

Net sales

  100.0% 100.0% 100.0%

Cost of sales

  73.1  74.5  73.9 
        

Gross profit

  26.9  25.5  26.1 
        

Operating expenses:

          
 

Sales and marketing

  11.9  12.4  10.9 
 

General and administrative

  6.1  6.6  7.2 
 

Engineering

  5.9  5.2  4.2 
 

Integration costs

    0.2   
 

Amortization of intangibles

  0.4  0.4   
        

Total operating expenses

  24.3  24.8  22.3 
        

Operating earnings

  2.6% 0.7% 3.8%
        



19









These excerpts taken from the DTLK 10-K filed Mar 28, 2008.

Results of Operations

        Our sales for 2007 increased $31.8 million or 21.8% to $177.8 million for 2007 as compared to 2006. Our gross margin increased $7.2 million or 18.9% to $45.3 million for 2007 as compared to 2006. Our earnings from operations decreased $4.4 million from $5.6 million in 2006 to $1.2 million in 2007. The following table shows, for the periods indicated, certain selected financial data expressed as a percentage of net sales.

 
  Years Ended December 31,
 
 
  2007
  2006
  2005
 
Net sales   100.0 % 100.0 % 100.0 %
Cost of sales   74.5   73.9   73.8  
   
 
 
 
Gross profit   25.5   26.1   26.2  
   
 
 
 
Operating expenses:              
  Sales and marketing   12.4   10.9   12.8  
  General and administrative   6.6   7.2   8.5  
  Engineering   5.2   4.2   4.4  
  Integration costs   0.2      
  Charge for sublease reserve       3.0  
  Amortization of intangibles   0.4     0.2  
   
 
 
 
Total operating expenses   24.8   22.3   28.9  
   
 
 
 
Operating earnings (loss)   0.7 % 3.8 % (2.7) %
   
 
 
 

Results of Operations



        Our sales for 2007 increased $31.8 million or 21.8% to $177.8 million for 2007 as compared to 2006. Our gross margin increased $7.2 million
or 18.9% to $45.3 million for 2007 as compared to 2006. Our earnings from operations decreased $4.4 million from $5.6 million in 2006 to $1.2 million in 2007. The following
table shows, for the periods indicated, certain selected financial data expressed as a percentage of net sales.





































































































































































































 
 Years Ended December 31,
 
 
 2007
 2006
 2005
 
Net sales 100.0%100.0%100.0%
Cost of sales 74.5 73.9 73.8 
  
 
 
 
Gross profit 25.5 26.1 26.2 
  
 
 
 
Operating expenses:       
 Sales and marketing 12.4 10.9 12.8 
 General and administrative 6.6 7.2 8.5 
 Engineering 5.2 4.2 4.4 
 Integration costs 0.2   
 Charge for sublease reserve   3.0 
 Amortization of intangibles 0.4  0.2 
  
 
 
 
Total operating expenses 24.8 22.3 28.9 
  
 
 
 
Operating earnings (loss) 0.7%3.8%(2.7)%
  
 
 
 




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