To purchase Incentra, LLC

Datalink Corp. reported unaudited earnings results for the third quarter and nine months ended September 30, 2009. For the quarter, the company reported net loss of $84,000 or $0.01 per diluted share on the total net sales of $42,711,000 compared with net earnings of $1,068,000 or $0.08 per diluted share on the total net sales of $49,980,000 for the same period a year ago. Loss from operations was $386,000 compared with profit from operations of $1,709 for the same period a year ago. Loss before income taxes was $366,000 compared with profit before income taxes of $1,810,000 for the same period a year ago. The company reported non-GAAP net earnings of $116,000 or $0.01 per diluted share compared with $1,342,000 or $0.11 per diluted share for the same period a year ago. The company said that third quarter earnings levels were at the low-end of guidance, quarterly results were constrained by the severance agreement with former president and CEO and a drop in product gross margins due to renewed focus on pursuing new customer account opportunities which may initially drive lower than normal product margins. For the nine months, the company reported net loss of $397,000 or $0.03 per diluted share on the total net sales of $126,276,000 compared with net earnings of $2,553,000 or $0.20 per diluted share on the total net sales of $147,412,000 for the same period a year ago. Loss from operations was $859,000 compared with profit from operations of $3,893 for the same period a year ago. Loss before income taxes was $778,000 compared with profit before income taxes of $4,327,000 for the same period a year ago. The company reported non-GAAP net earnings of $500,000 or $0.04 per diluted share compared with $3,366,000 or 0.27 per diluted share for the same period a year ago. Net cash used in operating activities was $3,217,000 compared with $1,150,000 for the same period a year ago. The company reported purchases of property and equipment of $156,000 compared with $585,000 for the same period a year ago. The company provided earnings guidance for the fourth quarter of 2009. For the quarter, the company expects revenues to be between $45 million and $49 million, with GAAP earnings in the range of breakeven to $0.04 per diluted share, and on a non-GAAP basis, earnings in the range of $0.03 to $0.07 per diluted share. This compares with revenues of $48.2 million in the fourth quarter of 2008 with GAAP earnings of $0.07 per diluted share and non-GAAP earnings of $0.09 per diluted share. The company estimates this total effect will be approximately $0.03 per diluted share for the fourth quarter of 2009.

Cross Telecom Inc. announced it has entered into an alliance with Datalink Corp. This alliance will integrate Cross' Network Solutions practice with Datalink's data center and storage solution capabilities. As a Cisco Certified partner, Datalink's network solutions will be combined with Cross' advanced business communication solutions, to provide co-delivery of industry unique, end-to-end solution offerings. These offerings will utilize the experience and leadership in communication, server, storage and networking technologies of both partners.