Datalink Acquires Networking Team from Cross Telecom.Deal Strengthens Company's Virtualized Data Center Offering CHANHASSEN, Minn. -- Datalink (Nasdaq: DTLK), a leading provider of data center infrastructure, solutions and services, today announced that it has acquired Minneapolis-based Cross Telecom's networking solutions organization. This team brings expertise in enterprise data networking, a key skill set needed when helping organizations virtualize To cause a virtual technique to be performed. See virtualization. their data centers. "This is an exciting opportunity for Datalink to expand the value we deliver to our customers," said Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved. Lidsky, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Datalink. "Companies continue to move aggressively to consolidate their server, storage and networking infrastructures. Virtualization technology See VT. See also virtualization. is accelerating this trend, and it delivers tremendous efficiency and productivity gains for customers." With the convergence of storage and networking, this new team's capabilities will add to Datalink's expertise in designing, implementing and managing sophisticated storage, backup and recovery infrastructures. Historically, Fiber Channel and Ethernet Ethernet Telecommunications networking protocol introduced by Xerox Corp. in 1979. It was developed as an inexpensive way of sending information quickly between office machines connected together in a single room or building, but it rapidly became a standard computer were distinct infrastructures provided by separate networking vendors. Going forward, Ethernet will play a central role in consolidated data center networks. By acquiring the Cross networking solutions team, Datalink is able to help customers build the consolidated networks they need to support growing their virtual data center infrastructures. The team has extensive experience designing, deploying and supporting reliable, cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. and secure LAN (Local Area Network) A communications network that serves users within a confined geographical area. The "clients" are the user's workstations typically running Windows, although Mac and Linux clients are also used. , WAN and data center infrastructure and security solutions for customers ranging from Fortune 100 companies to small businesses. As a result of this acquisition, Datalink is now a Cisco Silver Certified See certification. Partner. Strengthening Datalink's Virtualization An umbrella term for enhancing a computer's ability to do work. Following are the ways virtualization is used. Hardware Virtualization Partitioning the computer's memory into separate and isolated "virtual machines" simulates multiple machines within one physical computer. Practice In September, Datalink unveiled two new services to help companies more effectively design IT infrastructures for virtual environments: the Virtual Infrastructure Audit and the Virtual Infrastructure Assessment. These services provide an end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. view of existing servers, applications and storage devices. Cross-domain visibility and related analytics help customers identify current and potential performance issues, as well as make informed design choices based on Datalink recommendations. "By combining data networking capabilities with our existing SAN and virtualization expertise, we are able to offer customers a single source for all of their data center virtualization needs. This is significant as virtualization technologies have grown to become an essential component for driving efficiency in a company's IT operation," said Lidsky. Datalink will immediately assume responsibility for supporting the Cross networking customers. Over the coming weeks, Cross' sales force will introduce Datalink to customers who need storage and data center virtualization. Over time, the company believes this will provide incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. growth to Datalink. The transaction closed Oct. 1, 2009, and was structured as an asset purchase. The purchase price paid at closing was $2 million. Under terms of the purchase agreement Datalink and Cross entered into a services agreement under which Cross agreed to purchase at least $1.8 million of networking products and services from Datalink over the next three years. Datalink expects the transaction to be slightly accretive to earnings in the first 12 months. The company will discuss this acquisition during its third-quarter earnings conference call being held Wednesday, Oct. 14, 2009, at 4:00 p.m. CT. To access the conference call dial (877) 277-9804. Participants will be asked to identify the Datalink conference call and provide the designated identification number (31986470). A live Webcast of the call can be heard via Datalink's website at www.datalink.com. About Datalink A virtual data center infrastructure, solutions and services provider, Datalink helps organizations store, manage and protect one of their most critical assets--information. The company's solutions and services span four practices: backup and recovery; consolidation and virtualization; archive and compliance; and business applications. From analysis and design to implementation, management and support, Datalink is focused on maximizing the business value of IT. For more information about Datalink services, contact Datalink at (800) 448-6314, or visit Datalink online at www.datalink.com. The Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . This press release contains forward-looking statements which reflect our views regarding future events and financial performance. These forward-looking statements are subject to certain risks and uncertainties, including those identified below, which could cause actual results to differ materially from historical results or those anticipated. The words "aim, "believe," "expect," "anticipate," "intend," "estimate" and other expressions which indicate future events and trends identify forward-looking statements. Actual future results and trends may differ materially from historical results or those anticipated depending upon a variety of factors, including, but not limited to: the level of continuing demand for storage, including the effects of current economic and credit conditions; competition and pricing pressures and timing of our installations that may adversely affect our revenues and profits; fixed employment costs that may impact profitability if we suffer revenue shortfalls; our ability to hire and retain key technical and sales personnel; our dependence on key suppliers; our ability to adapt to rapid technological change; risks associated with integrating possible future acquisitions; fluctuations in our quarterly operating results; future changes in applicable accounting rules; and volatility in our stock price. Further, our revenues for any particular quarter are not necessarily reflected by our backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of contracted orders, which also may fluctuate unpredictably. |
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