DTLK » Topics » Overview

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

Overview

        An information storage architect since 1987, we help organizations store, manage, and protect one of their most critical assets—information. Our solutions and services span four practice areas:

    Backup and Recovery—Datalink backup and recovery solutions mitigate risk by helping companies protect and quickly recover information.

    Consolidation and Virtualization—Designed to simplify management and improve productivity. Datalink consolidation and virtualization solutions help improve efficiencies of data storage infrastructures and the staff that manage them.

    Business Applications—Datalink storage, backup, and recovery solutions are designed to achieve stringent data availability requirements found in high performance business application environments.

    Archive and Compliance—Aligned with increasing compliance requirements, Datalink solutions help companies simplify the retention, protection, and discovery of information.

        We offer a comprehensive suite of services spanning analysis, design, implementation, management and support. Our highly skilled technical services and practice management teams test and compare data storage technologies available from the leading manufacturers and software developers. Once a product is approved for our solution sets, our technical services team has the flexibility to choose from the best of these storage technologies to solve our customers' growing data storage needs. In addition, our support staff ensures the continued success of our data storage solutions for each customer. We believe these value-added services and our adherence to the highest quality standards have resulted in superior levels of customer satisfaction.

2


Overview



        An information storage architect since 1987, we help organizations store, manage, and protect one of their most critical
assets—information. Our solutions and services span four practice areas:





    Backup and Recovery—Datalink backup and recovery solutions mitigate risk by helping companies protect and
    quickly recover information.



    Consolidation and Virtualization—Designed to simplify management and improve productivity. Datalink
    consolidation and virtualization solutions help improve efficiencies of data storage infrastructures and the staff that manage them.



    Business Applications—Datalink storage, backup, and recovery solutions are designed to achieve stringent data
    availability requirements found in high performance business application environments.



    Archive and Compliance—Aligned with increasing compliance requirements, Datalink solutions help companies
    simplify the retention, protection, and discovery of information.



        We
offer a comprehensive suite of services spanning analysis, design, implementation, management and support. Our highly skilled technical services and practice management teams test and
compare data storage technologies available from the leading manufacturers and software developers. Once a product is approved for our solution sets, our technical services team has the flexibility to
choose from the best of these storage technologies to solve our customers' growing data storage needs. In addition, our support staff ensures the continued success of our data storage solutions for
each customer. We believe these value-added services and our adherence to the highest quality standards have resulted in superior levels of customer satisfaction.



2









Overview



        An information storage architect since 1987, we help organizations store, manage, and protect one of their most critical
assets—information. Our solutions and services span four practice areas:





    Backup and Recovery—Datalink backup and recovery solutions mitigate risk by helping companies protect and
    quickly recover information.



    Consolidation and Virtualization—Designed to simplify management and improve productivity. Datalink
    consolidation and virtualization solutions help improve efficiencies of data storage infrastructures and the staff that manage them.



    Business Applications—Datalink storage, backup, and recovery solutions are designed to achieve stringent data
    availability requirements found in high performance business application environments.



    Archive and Compliance—Aligned with increasing compliance requirements, Datalink solutions help companies
    simplify the retention, protection, and discovery of information.



        We
offer a comprehensive suite of services spanning analysis, design, implementation, management and support. Our highly skilled technical services and practice management teams test and
compare data storage technologies available from the leading manufacturers and software developers. Once a product is approved for our solution sets, our technical services team has the flexibility to
choose from the best of these storage technologies to solve our customers' growing data storage needs. In addition, our support staff ensures the continued success of our data storage solutions for
each customer. We believe these value-added services and our adherence to the highest quality standards have resulted in superior levels of customer satisfaction.



2









OVERVIEW

        We are an independent architect of enterprise-class information storage infrastructures. We derive our revenues principally from designing, installing and supporting data storage systems. Our solutions can include hardware products, such as disk arrays, tape systems and interconnection components and storage management software products. The market for data storage products and services is large. IDC estimates that digital information will occupy more than six times its current quantity, or 988 billion gigabytes, by 2010. As of December 31, 2008, we have 19 locations throughout the United States. We historically have derived our greatest percentage of net sales from customers located in the central part of the United States.

        We sell support service contracts to most of our customers. When customers purchase support services through us, customers receive the benefit of integrated system wide support. We have a qualified, independent support desk that takes calls from customers, diagnoses the issues they are facing and either solves the problem or coordinates with Datalink and/or vendor technical staff to meet the customer's needs. Our support service agreements with our customers include an underlying agreement with the product manufacturer. The manufacturer provides on-site support assistance if necessary. We defer revenues and direct costs resulting from these contracts, and amortize these revenues and expenses into operations, over the term of the contracts, which are generally twelve months.

17


        The enterprise-class information storage market is rapidly evolving and highly competitive. Our competition includes other independent storage system integrators, high end value added resellers, distributors, consultants and the internal sales force of our suppliers. Our ability to hire and retain qualified outside sales representatives and engineers with enterprise-class information storage experience is critical to effectively competing in the marketplace and achieving our growth strategies.

        In the past, we have experienced fluctuations in the timing of orders from our customers, and we expect to continue to experience these fluctuations in the future. These fluctuations have resulted from, among other things, the time required to design, test and evaluate our data storage solutions before customers deploy them, the size of customer orders, the complexity of our customers' network environments, necessary system configuration to deploy our solutions and new product introductions by suppliers. Completion of our installation and configuration services may also delay recognition of revenues. Current economic conditions and competition also affect our customers' decisions and timing to place orders with us and the size of those orders. As a result, our net sales may fluctuate from quarter to quarter.

        We view the current data storage market as providing significant opportunity for growth. Currently, Datalink's market share is a small part of the overall market. However, the providers of the data storage industry's products and technologies are increasing their utilization of indirect sales approaches to broaden their reach and optimize their margins. Increasingly, they are turning to companies such as Datalink to sell their products. While these trends provide opportunity for Datalink, we must improve our business model to generate sustainable, profitable growth. Our model requires highly skilled sales and technical staff which results in substantial fixed costs for us. We believe the best way to improve our company and create long-term shareholder value is to focus on building scaleable capabilities and a leverageable cost structure. Our current strategies are focused on:

    Investing in customer-facing teams to acquire top tier sales and technical talent which we believe will increase our market share in key locations.

    Deepening our presence in existing enterprise accounts and penetrating new enterprise accounts.

    Targeting high growth market segments and deploying new technologies which focus on cost savings technologies for our customers.

    Reducing our cost structure and realigning resources to improve efficiencies.

    Expanding our customer support capabilities and tools-based professional services offerings that we believe will provide more value to our customers.

    Exploring potential acquisitions that we believe can strengthen our resources and capabilities in key geographic locations.

        To pursue these strategies, we are:

    Improving our training, tools and recruiting efforts for sales and technical teams to increase productivity.

    Focusing on corporate expense reductions.

    Driving high levels of efficiency by streamlining our supply chain and expanding our professional services tools.

    Meeting with potential acquisition candidates.

        All of these plans have various challenges and risks associated with them, including that:

    The worldwide economic downturn may adversely affect our customers' buying patterns.

18


    We may not increase our productivity and may lose, or not successfully recruit and retain key sales, technical or other personnel.

    Competition is intense and may adversely impact our profit margin. Customers have many options for data storage products and services.

        In January 2007, we entered into an agreement and plan of merger with Midrange Computer Systems Inc. (MCSI), a storage consulting, solutions and service provider based in Chicago, Illinois. We believe the acquisition has strengthened our presence in existing regional markets and expanded our reach into a number of key new regional markets. We paid a purchase price of approximately $14.3 million for MCSI, consisting of $5.0 million cash and 1,163,384 shares of our common stock. Our results of operations for 2007 reflect the addition of MCSI for eleven months.

OVERVIEW



        We are an independent architect of enterprise-class information storage infrastructures. We derive our revenues principally from
designing, installing and supporting data storage systems. Our solutions can include hardware products, such as disk arrays, tape systems and interconnection components and storage management software
products. The market for data storage products and services is large. IDC estimates that digital information will occupy more than six times its current quantity, or 988 billion gigabytes, by
2010. As of December 31, 2008, we have 19 locations throughout the United States. We historically have derived our greatest percentage of net sales from customers located in the central part of
the United States.



        We
sell support service contracts to most of our customers. When customers purchase support services through us, customers receive the benefit of integrated system wide support. We have
a qualified,
independent support desk that takes calls from customers, diagnoses the issues they are facing and either solves the problem or coordinates with Datalink and/or vendor technical staff to meet the
customer's needs. Our support service agreements with our customers include an underlying agreement with the product manufacturer. The manufacturer provides on-site support assistance if
necessary. We defer revenues and direct costs resulting from these contracts, and amortize these revenues and expenses into operations, over the term of the contracts, which are generally twelve
months.



17









NAME="page_dg43201_1_18">




































        The enterprise-class information storage market is rapidly evolving and highly competitive. Our competition includes other independent storage system integrators, high end value added
resellers, distributors, consultants and the internal sales force of our suppliers. Our ability to hire and retain qualified outside sales representatives and engineers with enterprise-class
information storage experience is critical to effectively competing in the marketplace and achieving our growth strategies.



        In
the past, we have experienced fluctuations in the timing of orders from our customers, and we expect to continue to experience these fluctuations in the future. These fluctuations
have resulted from, among other things, the time required to design, test and evaluate our data storage solutions before customers deploy them, the size of customer orders, the complexity of our
customers' network environments, necessary system configuration to deploy our solutions and new product introductions by suppliers. Completion of our installation and configuration services may also
delay recognition of revenues. Current economic conditions and competition also affect our customers' decisions and timing to place orders with us and the size of those orders. As a result, our net
sales may fluctuate from quarter to quarter.



        We
view the current data storage market as providing significant opportunity for growth. Currently, Datalink's market share is a small part of the overall market. However, the providers
of the data storage industry's products and technologies are increasing their utilization of indirect sales approaches to broaden their reach and optimize their margins. Increasingly, they are turning
to companies such as Datalink to sell their products. While these trends provide opportunity for Datalink, we must improve our business model to generate sustainable, profitable growth. Our model
requires highly skilled sales and technical staff which results in substantial fixed costs for us. We believe the best way to improve our company and create long-term shareholder value is
to focus on building scaleable capabilities and a leverageable cost structure. Our current strategies are focused on:





    Investing in customer-facing teams to acquire top tier sales and technical talent which we believe will increase our
    market share in key locations.



    Deepening our presence in existing enterprise accounts and penetrating new enterprise accounts.


    Targeting high growth market segments and deploying new technologies which focus on cost savings technologies for our
    customers.



    Reducing our cost structure and realigning resources to improve efficiencies.


    Expanding our customer support capabilities and tools-based professional services offerings that we believe will provide
    more value to our customers.



    Exploring potential acquisitions that we believe can strengthen our resources and capabilities in key geographic
    locations.



        To
pursue these strategies, we are:





    Improving our training, tools and recruiting efforts for sales and technical teams to increase productivity.


    Focusing on corporate expense reductions.


    Driving high levels of efficiency by streamlining our supply chain and expanding our professional services tools.


    Meeting with potential acquisition candidates.



        All
of these plans have various challenges and risks associated with them, including that:





    The worldwide economic downturn may adversely affect our customers' buying patterns.


18












    We may not increase our productivity and may lose, or not successfully recruit and retain key sales, technical or other
    personnel.



    Competition is intense and may adversely impact our profit margin. Customers have many options for data storage products
    and services.



        In
January 2007, we entered into an agreement and plan of merger with Midrange Computer Systems Inc. (MCSI), a storage consulting, solutions and service provider based in Chicago,
Illinois. We believe the acquisition has strengthened our presence in existing regional markets and expanded our reach into a number of key new regional markets. We paid a purchase price of
approximately $14.3 million for MCSI, consisting of $5.0 million cash and 1,163,384 shares of our common stock. Our results of operations for 2007 reflect the addition of MCSI for eleven
months.



OVERVIEW



        We are an independent architect of enterprise-class information storage infrastructures. We derive our revenues principally from
designing, installing and supporting data storage systems. Our solutions can include hardware products, such as disk arrays, tape systems and interconnection components and storage management software
products. The market for data storage products and services is large. IDC estimates that digital information will occupy more than six times its current quantity, or 988 billion gigabytes, by
2010. As of December 31, 2008, we have 19 locations throughout the United States. We historically have derived our greatest percentage of net sales from customers located in the central part of
the United States.



        We
sell support service contracts to most of our customers. When customers purchase support services through us, customers receive the benefit of integrated system wide support. We have
a qualified,
independent support desk that takes calls from customers, diagnoses the issues they are facing and either solves the problem or coordinates with Datalink and/or vendor technical staff to meet the
customer's needs. Our support service agreements with our customers include an underlying agreement with the product manufacturer. The manufacturer provides on-site support assistance if
necessary. We defer revenues and direct costs resulting from these contracts, and amortize these revenues and expenses into operations, over the term of the contracts, which are generally twelve
months.



17









NAME="page_dg43201_1_18">




































        The enterprise-class information storage market is rapidly evolving and highly competitive. Our competition includes other independent storage system integrators, high end value added
resellers, distributors, consultants and the internal sales force of our suppliers. Our ability to hire and retain qualified outside sales representatives and engineers with enterprise-class
information storage experience is critical to effectively competing in the marketplace and achieving our growth strategies.



        In
the past, we have experienced fluctuations in the timing of orders from our customers, and we expect to continue to experience these fluctuations in the future. These fluctuations
have resulted from, among other things, the time required to design, test and evaluate our data storage solutions before customers deploy them, the size of customer orders, the complexity of our
customers' network environments, necessary system configuration to deploy our solutions and new product introductions by suppliers. Completion of our installation and configuration services may also
delay recognition of revenues. Current economic conditions and competition also affect our customers' decisions and timing to place orders with us and the size of those orders. As a result, our net
sales may fluctuate from quarter to quarter.



        We
view the current data storage market as providing significant opportunity for growth. Currently, Datalink's market share is a small part of the overall market. However, the providers
of the data storage industry's products and technologies are increasing their utilization of indirect sales approaches to broaden their reach and optimize their margins. Increasingly, they are turning
to companies such as Datalink to sell their products. While these trends provide opportunity for Datalink, we must improve our business model to generate sustainable, profitable growth. Our model
requires highly skilled sales and technical staff which results in substantial fixed costs for us. We believe the best way to improve our company and create long-term shareholder value is
to focus on building scaleable capabilities and a leverageable cost structure. Our current strategies are focused on:





    Investing in customer-facing teams to acquire top tier sales and technical talent which we believe will increase our
    market share in key locations.



    Deepening our presence in existing enterprise accounts and penetrating new enterprise accounts.


    Targeting high growth market segments and deploying new technologies which focus on cost savings technologies for our
    customers.



    Reducing our cost structure and realigning resources to improve efficiencies.


    Expanding our customer support capabilities and tools-based professional services offerings that we believe will provide
    more value to our customers.



    Exploring potential acquisitions that we believe can strengthen our resources and capabilities in key geographic
    locations.



        To
pursue these strategies, we are:





    Improving our training, tools and recruiting efforts for sales and technical teams to increase productivity.


    Focusing on corporate expense reductions.


    Driving high levels of efficiency by streamlining our supply chain and expanding our professional services tools.


    Meeting with potential acquisition candidates.



        All
of these plans have various challenges and risks associated with them, including that:





    The worldwide economic downturn may adversely affect our customers' buying patterns.


18












    We may not increase our productivity and may lose, or not successfully recruit and retain key sales, technical or other
    personnel.



    Competition is intense and may adversely impact our profit margin. Customers have many options for data storage products
    and services.



        In
January 2007, we entered into an agreement and plan of merger with Midrange Computer Systems Inc. (MCSI), a storage consulting, solutions and service provider based in Chicago,
Illinois. We believe the acquisition has strengthened our presence in existing regional markets and expanded our reach into a number of key new regional markets. We paid a purchase price of
approximately $14.3 million for MCSI, consisting of $5.0 million cash and 1,163,384 shares of our common stock. Our results of operations for 2007 reflect the addition of MCSI for eleven
months.



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

OVERVIEW

        We are an independent architect of enterprise-class information storage infrastructures. We derive our revenues principally from designing, installing and supporting data storage systems. Our solutions can include hardware products, such as disk arrays, tape systems and interconnection components and storage management software products. The market for data storage products and services is large. IDC estimates that digital information will occupy more than six times its current quantity, or 988 billion gigabytes, by 2010. As of December 31, 2007, we have 21 locations throughout the United States with the highest concentration of revenues in the central states.

        We sell support service contracts to most of our customers. When customers purchase support services through us, customers receive the benefit of integrated system wide support. We have a qualified, independent support desk that takes calls from customers, diagnoses the issues they are facing and either solves the problem or coordinates with Datalink and/or vendor technical staff to meet the customer's needs. Our support service agreements with our customers include an underlying agreement with the product manufacturer. The manufacturer provides on-site support assistance if necessary. We defer revenues and direct costs resulting from these contracts, and amortize these revenues and expenses into operations, over the term of the contracts, which are generally twelve months.

        The enterprise-class information storage market is rapidly evolving and highly competitive. Our competition includes other independent storage system integrators, high end value added resellers, distributors, consultants and the internal sales force of our suppliers. Our ability to hire and retain qualified outside sales representatives and engineers with enterprise-class information storage experience is critical to effectively competing in the marketplace and achieving our growth strategies.

        In the past, we have experienced fluctuations in the timing of orders from our customers, and we expect to continue to experience these fluctuations in the future. These fluctuations have resulted from, among other things, the time required to design, test and evaluate our data storage solutions before customers deploy them, the size of customer orders, the complexity of our customers' network environments, necessary system configuration to deploy our solutions and new product introductions by suppliers. Completion of our installation and configuration services may also delay recognition of revenues. Economic conditions and competition also affect our customers' decisions to place orders with us. As a result, our net sales may fluctuate from quarter to quarter.

        We view the current data storage market as providing significant opportunity for growth. Currently, Datalink's market share is a small part of the overall market. However, the providers of the data storage industry's products and technologies are increasing their utilization of indirect sales approaches to broaden their reach and optimize their margins. Increasingly, they are turning to companies such as Datalink to sell their products. While these trends provide opportunity for Datalink, we must improve our business model to generate sustainable, profitable growth. Our model requires highly skilled sales and technical staff which results in substantial fixed costs for us. We believe the best way to improve our company and create long-term shareholder value is to focus on building scaleable capabilities and a leverageable cost structure. Our current strategies are focused on:

    Increasing productivity of our sales, technical and customer support teams in our existing locations.

    Deepening our presence in existing enterprise accounts and penetrating new enterprise accounts.

18


    Targeting high growth market segments and deploying new technologies.

    Growing our customer support revenue and market share. We believe that our customer support services offerings are becoming increasingly attractive to companies looking for system-wide integrated support.

    Increasing our professional services revenues. We believe there is an opportunity to sell more of our data storage services such as implementation services, storage environment assessments and on-site data storage management and architecture services.

    Exploring potential acquisitions that we believe can strengthen our resources and capabilities in key geographic locations.

        To pursue these strategies, we are:

    Improving our training, tools and recruiting efforts for sales and engineering teams to increase productivity.

    Hiring additional customer support staff and enhancing the customer support staff's communications and call management capabilities.

    Developing more effective delivery capabilities for professional services and solutions.

    Meeting regularly with potential acquisition candidates.

        All of these plans have various challenges and risks associated with them, including that:

    We may not increase our productivity and may lose, or not successfully recruit and retain key sales, technical or other personnel.

    Competition is intense and may adversely impact our profit margin. Customers have many options for data storage products and services.

    Economic conditions may adversely impact our business. Customers may delay purchasing decisions or seek to spend less.

        In January 2007, we entered into an agreement and plan of merger with Midrange Computer Systems Inc. (MCSI), a storage consulting, solutions and service provider based in Chicago, Illinois. We believe the acquisition has strengthened our presence in existing regional markets and expanded our reach into a number of key new regional markets. We paid a purchase price of approximately $14.3 million for MCSI, consisting of $5.0 million cash and 1,163,384 shares of our common stock. Our results of operations for 2007 reflect the addition of MCSI for eleven months.

19


OVERVIEW



        We are an independent architect of enterprise-class information storage infrastructures. We derive our revenues principally from designing, installing and
supporting data storage systems. Our solutions can include hardware products, such as disk arrays, tape systems and interconnection components and storage management software products. The market for
data storage products and services is large. IDC estimates that digital information will occupy more than six times its current quantity, or 988 billion gigabytes, by 2010. As of
December 31, 2007, we have 21 locations throughout the United States with the highest concentration of revenues in the central states.



        We
sell support service contracts to most of our customers. When customers purchase support services through us, customers receive the benefit of integrated system wide support. We have
a qualified, independent support desk that takes calls from customers, diagnoses the issues they are facing and either solves the problem or coordinates with Datalink and/or vendor technical staff to
meet the customer's needs. Our support service agreements with our customers include an underlying agreement with the product manufacturer. The manufacturer provides on-site support
assistance if necessary. We defer revenues and direct costs resulting from these contracts, and amortize these revenues and expenses into operations, over the term of the contracts, which are
generally twelve months.



        The
enterprise-class information storage market is rapidly evolving and highly competitive. Our competition includes other independent storage system integrators, high end value added
resellers, distributors, consultants and the internal sales force of our suppliers. Our ability to hire and retain
qualified outside sales representatives and engineers with enterprise-class information storage experience is critical to effectively competing in the marketplace and achieving our growth strategies.




        In
the past, we have experienced fluctuations in the timing of orders from our customers, and we expect to continue to experience these fluctuations in the future. These fluctuations
have resulted from, among other things, the time required to design, test and evaluate our data storage solutions before customers deploy them, the size of customer orders, the complexity of our
customers' network environments, necessary system configuration to deploy our solutions and new product introductions by suppliers. Completion of our installation and configuration services may also
delay recognition of revenues. Economic conditions and competition also affect our customers' decisions to place orders with us. As a result, our net sales may fluctuate from quarter to quarter.




        We
view the current data storage market as providing significant opportunity for growth. Currently, Datalink's market share is a small part of the overall market. However, the providers
of the data storage industry's products and technologies are increasing their utilization of indirect sales approaches to broaden their reach and optimize their margins. Increasingly, they are turning
to companies such as Datalink to sell their products. While these trends provide opportunity for Datalink, we must improve our business model to generate sustainable, profitable growth. Our model
requires highly skilled sales and technical staff which results in substantial fixed costs for us. We believe the best way to improve our company and create long-term shareholder value is
to focus on building scaleable capabilities and a leverageable cost structure. Our current strategies are focused on:





    Increasing
    productivity of our sales, technical and customer support teams in our existing locations.


    Deepening
    our presence in existing enterprise accounts and penetrating new enterprise accounts.


18












    Targeting
    high growth market segments and deploying new technologies.


    Growing
    our customer support revenue and market share. We believe that our customer support services offerings are becoming increasingly attractive to companies looking for
    system-wide integrated support.


    Increasing
    our professional services revenues. We believe there is an opportunity to sell more of our data storage services such as implementation services, storage
    environment assessments and on-site data storage management and architecture services.


    Exploring
    potential acquisitions that we believe can strengthen our resources and capabilities in key geographic locations.



        To
pursue these strategies, we are:





    Improving
    our training, tools and recruiting efforts for sales and engineering teams to increase productivity.


    Hiring
    additional customer support staff and enhancing the customer support staff's communications and call management capabilities.


    Developing
    more effective delivery capabilities for professional services and solutions.


    Meeting
    regularly with potential acquisition candidates.



        All
of these plans have various challenges and risks associated with them, including that:





    We
    may not increase our productivity and may lose, or not successfully recruit and retain key sales, technical or other personnel.


    Competition
    is intense and may adversely impact our profit margin. Customers have many options for data storage products and services.


    Economic
    conditions may adversely impact our business. Customers may delay purchasing decisions or seek to spend less.



        In
January 2007, we entered into an agreement and plan of merger with Midrange Computer Systems Inc. (MCSI), a storage consulting, solutions and service provider based in Chicago,
Illinois. We believe the acquisition has strengthened our presence in existing regional markets and expanded our reach into a number of key new regional markets. We paid a purchase price of
approximately $14.3 million for MCSI, consisting of $5.0 million cash and 1,163,384 shares of our common stock. Our results of operations for 2007 reflect the addition of MCSI for eleven
months.



19









This excerpt taken from the DTLK DEF 14A filed Mar 28, 2008.

Overview

        We are an independent architect of enterprise-class information storage infrastructures. We focus on designing, installing and supporting data storage systems. Our business entails a hybrid combination of consultative, engineering and support services, hardware product sales and installation and software system design and implementation. We participate in the large and growing data protection and recovery marketplace primarily with original equipment manufacturers of storage products. For compensation purposes, we currently compare ourselves against other companies engaged in the sales and support of computer storage and peripherals and in information technology consulting and related services.

        Our Compensation Committee is composed of three independent, non-employee directors. The committee is responsible for all forms of compensation of our executive officers and oversight of our compensation plans. This discussion and analysis summarizes the philosophical principles, compensation decision-making process, specific program elements and other factors we considered in making decisions about executive compensation during 2007.

        The Compensation Committee may retain outside counsel, experts and other advisors as it determines appropriate to assist in performing its functions.

This excerpt taken from the DTLK 10-K filed Mar 29, 2007.

OVERVIEW

We are an independent architect of enterprise-class information storage infrastructures. We derive our revenues principally from designing, installing and supporting data storage systems. Our solutions can include hardware products, such as disk arrays, tape systems and interconnection components and storage management software products. The market for data storage products and services is large. IDC estimates that digital information will occupy more than six times its current quantity, or 988 billion gigabytes, by 2010. As of December 31, 2006, we had 14 locations throughout the United States with the highest concentration of revenues in the central states.

We sell support service contracts to most of our customers. When customers purchase support services through us, customers receive the benefit of integrated system wide support. We have a qualified, independent support desk that takes calls from customers, diagnoses the issues they are facing and either solves the problem or coordinates with Datalink and/or vendor technical staff to meet the customer’s needs. Our support service agreements with our customers include an underlying agreement with the product manufacturer. The manufacturer provides on-site support assistance if necessary. We defer revenues and direct costs resulting from these contracts, and amortize these revenues and expenses into operations, over the term of the contracts, which are generally twelve months.

The enterprise-class information storage market is rapidly evolving and highly competitive. Our competition includes other independent storage system integrators, high end value added resellers, distributors, consultants and the internal sales force of our suppliers. Our ability to hire and retain qualified outside sales representatives and engineers with enterprise-class information storage experience is critical to effectively competing in the marketplace and achieving our growth strategies.

In the past, we have experienced fluctuations in the timing of orders from our customers, and we expect to continue to experience these fluctuations in the future. These fluctuations have resulted from, among other things, the time required to design, test and evaluate our data storage solutions before customers deploy them, the size of customer orders, the complexity of our customers’ network environments, necessary system configuration to deploy our solutions and new product introductions by suppliers. Completion of our installation and configuration services may also delay recognition of revenues. Economic conditions and competition also affect our customers’ decisions to place orders with us. As a result, our net sales may fluctuate from quarter to quarter.

We view the current data storage market as providing significant opportunity for growth. Currently, Datalink’s market share is a small part of the overall market. However, the providers of the data storage industry’s products and technologies are increasing their utilization of indirect sales approaches to broaden their reach and optimize their margins. Increasingly, they are turning to companies such as Datalink to sell their products. While these trends provide opportunity for Datalink, we must improve our business model to generate sustainable, profitable growth. Our model requires highly skilled sales and technical staff which results in substantial fixed costs for us. We believe the best way to improve our company and create long-term shareholder value is to focus on building scaleable capabilities and a leverageable cost structure. Our current strategies are focused on:

·       Increasing productivity of our sales and technical teams in our existing locations.

·       Deepening our presence in existing enterprise accounts and penetrating new enterprise accounts.

19




·       Growing our customer support revenue and market share. We believe that our customer support services offerings are becoming increasingly attractive to companies looking for system-wide integrated support.

·       Increasing our professional services revenues. We believe there is an opportunity to sell more of our data storage services such as implementation services, storage environment assessments and on-site data storage management and architecture services.

·       Exploring potential regional acquisitions that we believe can strengthen our resources and capabilities in key geographic locations. On January 31, 2007, we acquired Midrange Computer Solutions Inc., a storage consulting, solutions and service provider based in Chicago, Illinois.

To pursue these strategies, we are:

·       Improving our training, tools and recruiting efforts for sales and engineering teams to increase productivity.

·       Hiring additional customer support staff and enhancing the customer support staff’s communications and call management capabilities.

·       Developing more effective delivery capabilities for professional services and solutions.

·       Focusing on successfully integrating Datalink and MCSI.

All of these plans have various challenges and risks associated with them, including that:

·       We may not increase our productivity and may lose, or not successfully recruit and retain key sales, technical or other personnel.

·       Competition is intense and may adversely impact our profit margin. Customers have many options for data storage products and services.

·       We may not successfully integrate MCSI and the failure to meet the challenges involved in integrating the operations of Datalink and MCSI successfully or otherwise to realize any of the anticipated benefits of the merger could seriously harm our business.

20




This excerpt taken from the DTLK DEF 14A filed Mar 29, 2007.

Overview

We are an independent architect of enterprise-class information storage infrastructures. We focus on designing, installing and supporting data storage systems. Our business entails a hybrid combination of consultative, engineering and support services, hardware product sales and installation and software system design and implementation. We participate in the large and growing data protection and recovery marketplace primarily with original equipment manufacturers of storage products. For compensation purposes, we currently compare ourselves against other companies engaged in the sales and support of computer storage and peripherals and in information technology consulting and related services.

Our Compensation Committee is composed of three independent, non-employee directors. The committee is responsible for all forms of compensation of our executive officers and oversight of our compensation plans. This discussion and analysis summarizes the philosophical principles, compensation decision-making process, specific program elements and other factors we considered in making decisions about executive compensation during 2006.

The Compensation Committee may retain outside counsel, experts and other advisors as it determines appropriate to assist in performing its functions.

This excerpt taken from the DTLK 10-K filed Mar 31, 2006.
OVERVIEW

We are an independent architect of enterprise-class information storage infrastructures. We derive our revenues principally from designing, installing and supporting data storage systems. Our solutions can include hardware products, such as disk arrays, tape systems and interconnection components and storage management software products. The market for data storage products and services is large. IDC estimates that external disk storage revenue grew more than 12% year over year and networked storage (SAN and NAS) grew nearly 70% year over year. We have 14 locations throughout the United States with the highest concentration of revenues in the central states.

We sell support service contracts to most of our customers. When customers purchase support services through us, customers receive the benefit of integrated system wide support. We have a qualified, independent support desk that takes calls from customers, diagnoses the issues they are facing and either solves the problem or coordinates with Datalink and/or vendor technical staff to meet the customer’s needs. Our support service agreements with our customers include an underlying agreement with the product manufacturer. The manufacturer provides on-site support assistance if necessary. We defer revenues and direct costs resulting from these contracts, and amortize these revenues and expenses into operations, over the term of the contracts, which are generally twelve months.

16




The enterprise-class information storage market is rapidly evolving and highly competitive. Our competition includes other independent storage system integrators, high end value added resellers, distributors, consultants and the internal sales force of our suppliers. Our ability to hire and retain qualified outside sales representatives and engineers with enterprise-class information storage experience is critical to effectively competing in the marketplace and achieving our growth strategies.

In the past, we have experienced fluctuations in the timing of orders from our customers, and we expect to continue to experience these fluctuations in the future. These fluctuations have resulted from, among other things, the time required to design, test and evaluate our data storage solutions before customers deploy them, the size of customer orders, the complexity of our customers’ network environments, necessary system configuration to deploy our solutions and new product introductions by suppliers. Completion of our installation and configuration services may also delay recognition of revenues. Economic conditions and competition also affect our customers’ decisions to place orders with us. As a result, our net sales may fluctuate from quarter to quarter.

We view the current data storage market as providing significant opportunity for growth. Currently, Datalink’s market share is a small part of the overall market. However, the providers of the data storage industry’s products and technologies are increasing their utilization of indirect sales approaches to broaden their reach and optimize their margins. Increasingly, they are turning to companies such as Datalink to sell their products. While these trends provide opportunity for Datalink, we must improve our business model to generate sustainable, profitable growth. Our model requires highly skilled sales and technical staff which results in substantial fixed costs for us. We believe the best way to improve our company and create long-term shareholder value is to focus on building scaleable capabilities and a leverageable cost structure. Our current strategies are focused on:

·        Increasing productivity of our sales and technical teams in our existing locations.

·        Growing our customer support revenue and market share. We believe that our customer support services offerings are becoming increasingly attractive to companies looking for system-wide integrated support.

·        Increasing our professional services revenues. We believe there is an opportunity to sell more of our data storage services such as implementation services, storage environment assessments and on-site data storage management and architecture services.

·        Exploring potential regional acquisitions that we believe can strengthen our resources and capabilities in key geographic locations.

To pursue these strategies, we are:

·        Improving our training, tools and recruiting efforts for sales and engineering teams to increase productivity.

·        Hiring additional customer support staff and enhancing the customer support staff’s communications and call management capabilities.

·        Developing more effective delivery capabilities for professional services and solutions.

All of these plans have various challenges and risks associated with them, including that:

·        We may not increase our productivity and may lose, or not successfully recruit and retain key sales, technical or other personnel.

·        Competition is intense and may adversely impact our profit margin. Customers have many options for data storage products and services.

17




·        We may not identify suitable acquisition candidates.

This excerpt taken from the DTLK 10-K filed Mar 31, 2005.

OVERVIEW

 

We are an independent architect of enterprise-class information storage infrastructures. We derive our revenues principally from designing, installing and supporting data storage systems. Our solutions can include hardware products, such as disk arrays, tape systems and interconnection components and storage management software products.  The market for data storage products and services is large, estimated at $34 billion in 2004.  We have 15 locations throughout the United States with the highest concentration of revenues in the central states.

 

We sell support service contracts to most of our customers.  When customers purchase support services through us, customers receive the benefit of integrated system wide support.  We have a qualified, independent support desk that takes calls from customers, diagnoses the issues they are facing and either solves the problem or coordinates with Datalink and/or vendor technical staff to meet the customer’s needs.  Our support service agreements with our customers include an underlying agreement with the product vendor.  The vendor provides on-site support assistance if necessary. We defer revenues and direct costs resulting from these contracts, and amortize these revenues and expenses into operations, over the term of the contracts, which are generally twelve months.

 

The enterprise-class information storage market is rapidly evolving and highly competitive.  Our competition includes other independent storage system suppliers, high end market resellers, distributors, consultants and our suppliers through other independent data storage solution providers, original equipment manufacturers and their own internal sales forces.  Our ability to

 

9



 

hire and retain qualified outside sales representatives and engineers with enterprise-class information storage experience is critical to effectively competing in the marketplace and achieving our growth strategies.

 

In the past, we have experienced fluctuations in the timing of orders from our customers, and we expect to continue to experience these fluctuations in the future.  These fluctuations have resulted from, among other things, the time required to design, test and evaluate our data storage solutions before customers deploy them, the size of customer orders, the complexity of our customers’ network environments, necessary system configuration to deploy our solutions and new product introductions by suppliers.  Completion of our installation and configuration services may also delay recognition of revenues.  Economic conditions and competition also affect our customers’ decisions to place orders with us.  As a result, our net sales may fluctuate from quarter to quarter.

 

We view the current data storage market as having significant opportunity for Datalink’s growth.  Currently, Datalink’s market share is a small part of the overall market.  However, the providers of the data storage industry’s products and technologies are increasing their utilization of indirect sales approaches to broaden their reach and optimize their margins.  Increasingly, they are turning to companies such as Datalink to sell their products.  While these trends provide opportunity for Datalink, we must improve our business model to generate sustainable, profitable growth.  Our model requires highly skilled sales and technical staff which results in substantial fixed costs for the Company.  We believe the best way to improve our company and create long-term shareholder value it to focus on building capabilities that are scaleable and a cost structure that we can better leverage.  Our current strategies are focused on:

      Increasing productivity of our sales and technical teams in our existing locations.

      Growing our customer support revenue and market share.  We believe that our customer support services offerings are becoming increasingly attractive to companies looking for system-wide integrated support.

      Increasing our professional services revenues.  We believe there is an opportunity to sell more of our data storage services such as implementation services, storage environment assessments and on-site managed data storage services.

      Exploring potential regional acquisitions that we perceive can strengthen our resources and presence in key geographic locations.

 

To pursue these strategies, our actions include:

      Improving our training, tools and recruiting for sales teams to increase productivity.

      Hiring additional customer support staff and enhancing communications and technology.

      Developing more effective delivery of professional service solutions.

 

All of these plans have various challenges and risks associated with them, including that:

      We may not increase our productivity and may lose, or not successfully recruit and retain key sales, technical or other personnel.

      Competition is intense and may adversely impact our profit margin.  Customers have many options for data storage products and services.

      We may not identify suitable acquisition candidates.

 

Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki