Scott Robinson, chief technical officer at Datalink, says the company is well aware of the pressures of the public markets.
"Most traditional resellers are smaller, and private," says Robinson, who prefers to refer to Datalink as a "storage architect" firm, since he claims it sells design and implementation expertise alongside storage software and hardware.
"We know we have pressure to grow revenues and earnings," Robinson says. "But that's in line with our strategy, anyway. We don't think of ourselves as competing against other resellers; we think of our competition as the hardware vendors themselves."
And just like those same hardware vendors, Datalink found the summer of 2001 a challenge, recording $27 million in revenues for its second fiscal quarter, compared to almost $35 million for the same period in 2000. Though a pre-report warning kept most analysts from whacking the company, Wall Street will likely be watching closely to see if the company meets its stated goal of $33 million to $38 million in revenue for the ongoing third quarter.
While the company resells a wide range of storage products -- including wares from Hitachi Data Systems (HDS), Network Appliance Inc. (Nasdaq: NTAP), and LSI Logic Corp. (NYSE: LSI), as well as management software from Veritas Software Corp. (Nasdaq: VRTS) and Legato Systems Inc. (Nasdaq: LGTO) -- storage-area network products represent one of its fastest-growing segments. According to Robinson, Datalink is among the top resellers of Brocade Communications Systems Inc. (Nasdaq: BRCD) Fibre Channel fabric switches.
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