Datalink Completes Agreement to Sublease Portion of Its Corporate Facility; Cost savings of $950,000 per year; non-cash charge to be taken in Q1 2005.MINNEAPOLIS -- Datalink Corporation Datalink Corporation (NASDAQ: DTLK) is an American data storage corporation with operations throughout the United States. The company engages in the design, installation, and support of data storage infrastructures that store, protect, and provide continuous access to (Nasdaq:DTLK), a leading independent information storage architect has reached agreement to sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. approximately 55% of its corporate headquarters facility located in Chanhassen, Minnesota Chanhassen is a city located in the U.S. state of Minnesota. The population was estimated to be 23,864 in 2006.[1] Although the bulk of Chanhassen is in Carver County, it also extends into Hennepin County. . The new tenant is expected to occupy approximately 55,000 square feet of office space beginning around March 31, 2005. The sublease agreement concludes in 2012. Datalink expects that the agreement will generate a reduction in annual rent and associated costs of approximately $950,000 beginning in the quarter ended March 31, 2005. Datalink will share the facility with the new tenant and continue to maintain its corporate headquarters in Chanhassen, Minnesota. Greg Meland, Datalink Chief Executive Officer, commented, "This agreement will result in significant expense reduction. We look forward to generating improved operating results with the cost savings." Datalink expects to take a one time non-cash charge Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. of approximately $3 million in the quarter ended March 31, 2005. The accrual primarily represents the difference between the company's original lease payment, and the amount it will receive from the sub lessee over the remaining lease term. 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. This press release contains forward-looking statements, including the amount and timing of our anticipated future rent reductions and charges related to our sublease. Our estimates are uncertain and our actual expenses for the sublease, and our rental cost savings, may differ over time from our internal projections. Datalink Corporation is an information storage architect. The company analyzes, designs, implements, and supports information storage infrastructures that store, protect, and provide continuous access to information. Datalink's specialized capabilities and solutions span storage area networks, network-attached storage See NAS. , direct-attached storage, and IP-based storage, using industry-leading hardware, software, and technical services. |
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