Datalink sees 3rd-qtr results below expectation
Oct 4 (Reuters) - Datalink Corp, which makes data storage systems and software, estimated third-quarter results below its forecast as customers held back on spending.
The company now expects to earn 14 cents to 15 cents per share, on revenue of between $105 million and $106 million.
Datalink had forecast third-quarter earnings of between 20 cents and 25 cents per share, on revenue of between $117 million and $122 million.
Analysts on average were expecting the company to earn 23 cents per share, on revenue of $120.4 million, according to Thomson Reuters I/B/E/S.
"We continue to see our customers remain cautious regarding large capital expenditures, especially with the uncertainty surrounding the current economic environment," Chief Executive Paul Lidsky said in a statement.
Datalink is scheduled to report third-quarter results on Oct. 25.
The company also said it expects to incur a charge of $300,000, or $0.01 per share in the fourth quarter, related to its acquisition of IT services company Strategic Technologies Inc.
Shares of the company fell as much as 13 percent after the bell. They had closed at $8.58 on the Nasdaq on Thursday.