On July 2 Datalink lowered its second quarter guidance due to a “slow down in IT and storage spending” with some of its large customers.

Datalink lowered its revenue forecast to a range of 40 to 41 million from the previous range of 49 to 50 million and also lowered its earnings forecast to a loss of 3 to 5 cents a share from previous guidance of breakeven to a profit of 5 cents.

Datalink stated that based on a backlog of over thirty million for the third quarter and the current sales pipeline they “expect to see an uplift in business activity in the second half of the year.”

I would recommend continuing to hold your shares until they announce second quarter results (which should be in another couple of weeks). If Datalink provides good guidance for the third quarter the stock price should respond upward.

I am going to change my recommendation to hold until then and I will provide another update after they announce second quarter results.

Disclosure: I currently have no position in DTLK.