1056923--3/29/2007--DATALINK

related topics

{product, market, service}

{personnel, key, retain}

{provision, law, control}

{customer, product, revenue}

{control, financial, internal}

{stock, price, operating}

{stock, price, share}

{acquisition, growth, future}

{regulation, change, law}

{tax, income, asset}

{investment, property, distribution}

We cannot assure future profitability. Competition could prevent us from increasing or sustaining our revenues or profitability. We derive a significant percentage of our revenues from a small number of customers. Our revenue recognition policies unpredictably defer reporting of our revenues. Our key vendors could discontinue their incentive programs, which could adversely affect our business. Our business depends on our ability to hire and retain technical personnel and highly qualified sales people. We generally do not have employment agreements with our key employees. Our long sales cycle may cause fluctuating operating results, which may adversely affect our stock price. If the data storage industry fails to develop compelling new storage technologies, our business may suffer. We will be exposed to risks relating to evaluations of controls required by Section 404 of the Sarbanes-Oxley Act. Control by our existing stockholders could discourage the potential acquisition of our business. Our stock price is volatile. Our governing documents and Minnesota law may discourage the potential acquisitions of our business. Future goodwill impairment may unpredictably affect our financial results. Our future recognition of the expenses associated with stock-based compensation may adversely affect our stock price. We may not successfully integrate or realize the benefits of the acquisition of Midrange Computer Solutions Inc. (MCSI) The sublessee for our corporate headquarters may be unable to make their lease payments or default on their lease agreement.

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1056923--3/29/2007--DATALINK_CORP