After the last paragraph of the release, please note the added financial tables.

The corrected release reads:

DATALINK REPORTS 2011 FIRST QUARTER OPERATING RESULTS

Record First Quarter Results Beat Revenues and Earnings Guidance

Datalink (Nasdaq: DTLK), a leading provider of data center infrastructure and services, today reported results for its first quarter that ended March 31, 2011. For the first quarter, revenues were $85.7 million compared to $62.5 million for the prior-year period, a 37% increase. Product revenue was $55.6 million and services revenue was $30.1 million, up 46% and 23% respectively, from the first quarter of 2010.

GAAP Results
On a GAAP basis, the company reported net earnings of $1.7 million, or $0.12 per diluted share, for the first quarter ending March 31, 2011. This compares to loss of $891,000, or $0.07 per diluted share, in the first quarter of 2010.

Non-GAAP Results
Non-GAAP net earnings for the first quarter of 2011 were $2.2 million, or $0.16 per diluted share, compared to non-GAAP earnings of $107,000, or $0.01 per diluted share, in the first quarter of 2010. A detailed reconciliation between GAAP and non-GAAP information is contained in the tables included herein.

Paul Lidsky, Datalink’s president and CEO, commented, “The first quarter of 2011 was another record quarter for Datalink. Our momentum from a record 2010 has continued into 2011. We reported record first quarter revenues of $85.7 million, GAAP earnings of $1.7 million and non-GAAP earnings of $2.2 million, both of which also exceeded our internal plan and investor guidance given at the beginning of the quarter. This represents our eighth consecutive quarter of non-GAAP net earnings. Other significant accomplishments for the first quarter of 2011 include:

• We continue to see an increase in multi-million dollar accounts with Global 500 companies. In the first quarter we had 14 customers each purchase over $1 million of product and services from us as compared to 5 customers in the first quarter of 2010. In addition, we acquired 67 new customers in the first quarter of 2011.
• Our customer intimacy is a corner stone to our go to market strategy to deliver premier services to our customers, as evident in our 21% increase in services to $30.1 million.
• We completed a successful follow-on public offering, resulting in the company raising $17.5 million and increasing our public float by 4.3 million shares. These funds are intended for future acquisitions to accelerate our growth and increase our profitability.
• We exited the quarter with a strong balance sheet. Our working capital increased $21 million to $42.6 million, which includes the proceeds from our public offering, from the fourth quarter and we have no debt.
• We entered into a $10 million line of credit agreement, which gives us additional capital availability for organic growth.
• We were named by CRN to the Tech Elite 250 which serves as the industry’s definitive list of solution providers with both deep technical expertise and premier certifications. Datalink was recognized as a best-of-breed integrator who has invested in technical know-how and earned premier certifications in the area of data center expertise for North American customers.”

Outlook
Based on the company’s backlog and sales pipeline we expect revenues to be between $80 million and $86 million for the second quarter of 2011 and we expect second quarter 2011 net earnings to be between $0.07 and $0.11 per diluted share on a GAAP basis, and net earnings to be between $0.09 and $0.13 per diluted share on a non-GAAP basis. This compares to revenues of $70.9 million in the second quarter of 2010. GAAP net earnings per share in the second quarter of 2010 were break-even and non-GAAP net earnings per share were $0.06 per share.

“I am pleased with the strong start to the new year and as our second quarter guidance suggests, we expect this growth to continue into the second quarter of 2011. Our second quarter guidance represents a 13% to 20% increase in revenues,” said Lidsky. “I believe that our second quarter forecast is indicative of the steadily increasing demand for unified data center infrastructure and that our customers and prospects continue to invest in this area. Datalink’s investments in our expanded product and services portfolio position us to take full advantage of this expanding market,” he added.

Non-GAAP earnings per share exclude the effect of acquisition accounting adjustments from the Incentra acquisition to deferred revenue and costs, integration and transaction costs related to acquisitions, stock-based compensation expense, amortization of intangible assets, and the related effects on income taxes. The company estimates this total effect will be approximately $0.02 per diluted share for the second quarter of 2011.

Effect of Accounting Change
Effective January 1, 2011, the company was required to adopt a new revenue recognition accounting standard. This new standard, which applies to all resellers of computer hardware, requires that the company now recognize product revenues upon shipment versus upon installation under its old revenue recognition method. Accordingly the company’s first quarter 2011 results reflects this new revenue recognition policy. As discussed in the company’s first quarter 2011 revenue guidance approximately $7.5 million of revenues were recognized in the first quarter of 2011 that would have been recognized in the fourth quarter of 2010 if the company had been recognizing revenue upon shipment in 2010.

During the first quarter of 2011 approximately $14 million of revenues that booked upon shipment had not yet been installed at March 31, 2011 in accordance with the new revenue recognition accounting standard. A more detailed disclosure and reconciliation will be provided in the company’s Form 10-Q for the first quarter of 2011.

Conference Call and Webcast Today
Datalink will hold a conference call at 4:00 p.m. central time, during which Datalink's president and chief executive officer, Paul Lidsky, and vice president of finance and chief financial officer, Greg Barnum, will discuss company results and provide a business overview. Participants can access the conference call by dialing (877) 277-9804. Participants will be asked to identify the Datalink conference call and provide the designated identification number (53318947). A live Webcast of the conference call can be heard via Datalink’s website at www.datalink.com.

About Datalink

A complete data center solutions and services provider for Fortune 500 and mid-tier enterprises, Datalink transforms data centers so they become more efficient, manageable and responsive to changing business needs. Datalink helps leverage and protect storage, server, and network investments with a focus on long-term value, offering a full lifecycle of services, from consulting and design to implementation, management and support. Datalink solutions span virtualization and consolidation, data storage and protection, advanced networks, and business continuity. Each delivers measurable performance gains and maximizes the business value of IT. For more information, call 800.448.6314 or visit www.datalink.com.

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain forward-looking statements. This press release contains forward-looking statements, including our internal projections of anticipated 2011 results, 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,” “should” 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; revenue recognition policies that may unpredictably defer reporting of our revenues; 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 of contracted orders, which also may fluctuate unpredictably. We cannot assure that we can grow or maintain our revenue and backlog from current levels.

Non-GAAP Details

Non-GAAP financial measures exclude the impact from acquisition accounting adjustments to deferred revenue and costs, stock-based compensation expense, amortization of acquisition intangible assets, integration and transaction costs related to acquisitions and the related effects on income taxes. These non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, GAAP and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. We believe that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate our results of operations in conjunction with the corresponding GAAP measures.

These non-GAAP financial measures facilitate management's internal comparisons to our historical operating results and comparisons to competitors' operating results. We include these non-GAAP financial measures in our earnings announcement because we believe they are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making, such as employee compensation planning. We believe that the presentation of these non-GAAP measures when shown in conjunction with the corresponding GAAP measures provides useful information to investors and management regarding financial and business trends relating to our financial condition and results of operations.