Item with respect to our directors by reference to the information in the section entitled "Election of Directors" in our Proxy Statement. We incorporate the information required by this Item with respect to our executive officers by reference from our Proxy Statement under the heading "Executive Officers." We incorporate the information required by this Item with respect to disclosure of any known late filing or failure by an insider to file a report required by Section 16 of the Exchange Act by reference to the section entitled "Section 16(a) Beneficial Ownership Reporting Compliance" in our Proxy Statement. We incorporate the information regarding our corporate governance by reference to the section entitled "Corporate Governance" in our Proxy Statement.

        Our directors hold office until the next annual meeting of shareholders or until their successors are duly elected or appointed.

        We will furnish to the Securities and Exchange Commission a definitive Proxy Statement (the "Proxy Statement") not later than 120 days after the close of the fiscal year ended December 31, 2007. We incorporated the remaining information required by Items 401 and 405 of Regulation S-K herein by reference to our Proxy Statement.

        We have adopted a Code of Ethics that applies to our officers, including our principal executive, financial and accounting officers, and our directors and employees. We intend to make all required disclosures concerning any amendments to, or waivers from, our Code of Ethics by the filing of Current Reports under the cover of From 8-K.

Item 11.    Executive Compensation.

        We incorporate the information set forth under the caption "Executive Compensation" in our Proxy Statement herein by reference.

49


Item 12.    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

        We incorporate the information set forth under the caption "Outstanding Voting Securities and Voting Rights" in our Proxy Statement herein by reference.

 
  Equity Compensation Plan Information
Plan Category
  Number of securities
to be issued upon
exercise of
outstanding options,
warrants and rights
  Weighted-average
exercise of outstanding
options, warrants and
rights
  Number of securities
remaining available
for future issuance
under equity
compensation plans
(excluding securities
reflected in the first
column)
Equity compensation plans approved by security holders(1)   1,122,588   $ 5.66   1,001,051
Equity compensation plans not approved by security holders        
       
Totals   1,122,588   $ 5.66   1,001,051
       
(1)
These equity compensation plans consist of our Incentive Compensation Plan and our 2000 Director Stock Option Plan, each as amended.

Item 13.    Certain Relationships and Related Transactions.

        We incorporate the information required by this section by reference from the information in the section entitled "Certain Relationships and Related Transactions" in our Proxy Statement.

Item 14.    Principal Accountant Fees and Services.

        We incorporate the information required by this section by reference from the information in the section entitled "Auditing Matters" in our Proxy Statement.

Item 15.    Exhibits, Financial Statement Schedules, and Reports on Form 8-K.

(a)
The following documents are filed as part of this report:

1.
Financial Statements

      Reference is made to the Index to Financial Statements of Datalink Corporation, under Item 8 in Part II of this Form 10-K.

    2.
    Financial Statement Schedules.

      The following financial statement schedule of Datalink Corporation for the years ended 2007, 2006 and 2005 is filed as part of this Annual Report and should be read in conjunction with the Financial Statements of Datalink Corporation.

50


DATALINK CORPORATION
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS
FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005

Description
  Period   Balance at
Beginning
of Period
  Additions   Deductions(1)   Balance
at End
of Period
Allowance for Doubtful Accounts   2007
2006
2005
  $

108,254
71,665
70,128
  $

36,332
57,928
15,000
  $

32,094
21,339
13,463
  $

112,492
108,254
71,665

Allowance for Inventory Obsolescence

 

2007
2006
2005

 

$


50,826
99,840
71,303

 

$


258,074
47,022
69,665

 

$


123,218
96,036
41,128

 

$


185,682
50,826
99,840

Allowance for Valuation of Deferred Tax Asset

 

2007
2006
2005

 

$



4,827,367
4,678,611

 

$




148,756

 

$



4,827,367

 

$




4,827,367
(1)
Deductions reflect write-offs of customer accounts receivables, net of recoveries, disposals of inventories and reversal of allowance for valuation of deferred tax assets.

51


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
ON FINANCIAL STATEMENT SCHEDULE

To the Board of Directors
Datalink Corporation

        Our audits were conducted in accordance with the standards of the Public Company Accounting Oversight Board (United States) and were made for the purpose of forming an opinion on the basic financial statements of Datalink Corporation taken as a whole. The supplemental Schedule II is presented for purposes of complying with the Securities and Exchange Commission's rules and is not a part of the basic financial statements. This schedule has been subjected to the auditing procedures applied in our audits of the basic financial statements and in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ McGLADREY & PULLEN, LLP

Minneapolis, Minnesota
March 28, 2008

52

        3.    Exhibits.    The following exhibits are filed as part of this Form 10-K:

Exhibit Number
  Title   Method of Filing
2.1   Agreement and Plan of Merger dated January 20, 2007 by and among Midrange Computer Solutions, Inc., Dan Kalin, Michael Spindler, Wayne Szczepanski and Lodi Vercelli and Datalink Corporation and Datalink Acquisition LLC   13
3.1   Amended and Restated Articles of Incorporation of the Company   1
3.2   Restated Bylaws of the Company   1
4.1   Form of Common Stock Certificate   1
10.1   Employee Stock Purchase Plan   1
10.2   1999 Incentive Compensation Plan, as amended on December 18, 2000   4
10.3   Credit Agreement with Norwest Bank Minneapolis, N.A.   1
10.4   Form of Indemnification Agreement   1
10.5   Lease Agreement with Washington Avenue L.L.P.   1
10.6   Deferred Compensation Agreement with Stanley I. Clothier   1
10.7   Agreement and Plan of Reorganization with Direct Connect Systems, Inc. (excluding Schedules and Exhibits which the Registrant will provide to the Commission upon request)   1
10.8   Second Lease Agreement with Washington Avenue L.L.P.   1
10.9   Lease Extension Agreement with Washington Avenue L.L.P.   1
10.11   Asset Purchase Agreement dated November 10, 2000 with OpenSystems.com, Inc. (excluding Schedules and Exhibits which the Registrant will provide to The Commission upon request)   2
10.12   Building Lease with Hoyt/DTLK LLC   3
10.13   Building Lease date April 27, 2001 with Hoyt/DTLK LLC   5
10.18   2000 Director Stock Option Plan   4
10.20   2002 Amendments to the 2000 Director Stock Option Plan   6
10.22   Amended and Restated 2000 Director Stock Option Plan   7
10.23   Restricted Stock Award Agreement   8
10.24   Change of Control Severance Agreement   8
10.25   Sublease Agreement dated December 15, 2004 with Checkpoint Security, Inc.   10
10.26   Vacant Land Purchase Agreement   10
10.27   Correction to Restricted Stock Award Agreements dated August 13, 2004   11
10.28   Employment Agreement dated March 14, 2006 with Gregory T. Barnum   12
10.29   Employment Agreement dated February 16, 2007 with Robert R. Beyer   14
14.1   Code of Ethics   9
23.1   Consent of McGladrey & Pullen, LLP   Filed herewith
31.1   Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002   Filed herewith
32.1   Certifications by the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002   Filed herewith
99.2   Audit Committee Charter (Revised May 4, 2006)   15
(1)
Incorporated by reference to the exhibit of the same number in our Registration Statement on Form S-1, Reg. No. 333-55935

(2)
Incorporated by reference to the exhibit of the same number in our September 30, 2000 Form 10-Q.

(3)
Incorporated by reference to the exhibit of the same number in our 2000 Form 10-K.

53

(4)
Incorporated by reference to our 2000 Proxy Statement.

(5)
Incorporated by reference to the exhibit of the same number in our March 31, 2001 Form 10-Q.

(6)
Incorporated by reference to the exhibit of the same number in our 2002 Form 10-K.

(7)
Incorporated by reference to the exhibit of the same number in our March 31, 2004 Form 10-Q.

(8)
Incorporated by reference to the exhibit of the same number in our September 30, 2004 Form 10-Q.

(9)
Incorporated by reference to the exhibit of the same number in our 2003 Form 10-K.

(10)
Incorporated by reference to the exhibit of the same number in our 2004 Form 10-K.

(11)
Incorporated by reference to the exhibit of the same number in our September 30, 2005 Form 10-Q.

(12)
Incorporated by reference to the exhibit of the same number in our Form 8-K filed on March 17, 2006.

(13)
Incorporated by reference to the exhibit of the same number in our Form 8-K filed on February 5, 2007.

(14)
Incorporated by reference to the exhibit of the same number in our Form 8-K filed on February 20, 2007.

(15)
Incorporated by reference to the exhibit of the same number in our 2006 Form 10-K.

54


SIGNATURES

        Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.

        DATALINK CORPORATION

Date: March 28, 2008

 

 

 

 

 
        By: /s/  CHARLES B. WESTLING       Charles B. Westling,
President and Chief Executive Officer

 

 

 

 

By:

/s/  
GREGORY T. BARNUM       Gregory T. Barnum,
Vice President of Finance and Chief Financial Officer

        Pursuant to the requirements of the Securities Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature   Title   Date

 

 

 

 

 
/s/  CHARLES B. WESTLING         President, Chief Executive Officer and Director (Principal Executive Officer)   March 28, 2008

/s/  
GREGORY T. BARNUM      

 

Vice President of Finance and Chief Financial Officer (Principal Financial Officer)

 

March 28, 2008

/s/  
DENISE M. WESTENFIELD      

 

Corporate Controller (Principal Accounting Officer)

 

March 28, 2008

/s/  
GREG R. MELAND      

 

Chairman of the Board and Director

 

March 28, 2008

/s/  
BRENT G. BLACKEY      

 

Director

 

March 28, 2008

/s/  
PAUL F. LIDSKY      

 

Director

 

March 28, 2008

/s/  
MARGARET A. LOFTUS      

 

Director

 

March 28, 2008

/s/  
J. PATRICK O'HALLORAN      

 

Director

 

March 28, 2008

/s/  
JAMES E. OUSLEY      

 

Director

 

March 28, 2008

/s/  
ROBERT M. PRICE      

 

Director

 

March 28, 2008

55



QuickLinks

DOCUMENTS INCORPORATED BY REFERENCE
NOTE REGARDING FORWARD-LOOKING STATEMENTS
PART I
PART II
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN* Among Datalink Corporation, The NASDAQ Composite Index And The Russell 2000 Index
Report of Independent Registered Public Accounting Firm
DATALINK CORPORATION BALANCE SHEETS (In thousands, except share data)
DATALINK CORPORATION STATEMENTS OF OPERATIONS (In thousands, except per share data)
DATALINK CORPORATION STATEMENTS OF STOCKHOLDERS' EQUITY (In thousands)
DATALINK CORPORATION STATEMENTS OF CASH FLOWS (In thousands)
DATALINK CORPORATION NOTES TO FINANCIAL STATEMENTS
PART III
DATALINK CORPORATION SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM ON FINANCIAL STATEMENT SCHEDULE
SIGNATURES