Imation cuts outlook, blames lower demand for data
Minneapolis / St. Paul Business Journal - by Holly Dolazalek Staff Writer
Shares of Imation Corp. slid Tuesday after the data-storage company reported that it lost $5.9 million in the third quarter and cut its earnings projections for the full year.
Oakdale-based Imation’s (NYSE:IMN) net loss amounted to 16 cents per diluted share, compared to a profit of $9.4 million, or 24 cents per diluted share, in the third quarter of 2007.
Revenue edged up to $527.5 million from $525.5 million.
The loss came primarily from write-offs of $16.3 million in restructuring actions – without the restructuring charges, Imation saw earnings of 11 cents in the quarter.
Imation also saw slumping sales in flash media drives and magnetic products. Sales in flash media were particularly hard hit, with revenues falling 41.8 percent to $22.8 million from $39.2 million in third-quarter 2007. The company said that demand had been hurt by retailers cutting back on holiday orders.
Based on the third-quarter results, the company cut its projections for the year, to revenues of $2.16 to $2.18 billion, instead of the previous target of $2.4 billion. It projected diluted earnings per share of between 44 and 56 cents per share, down from earnings between $1.26 and $1.43 per share in previous projections.
Imation stock was trading at $12.67 per share this morning, down from its closing price the day before of $13.51.
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