Imation Corp. (IMN, Financial) filed Quarterly Report for the period ended 2009-06-30.
Imation Corp. develops manufactures and markets worldwide a widevariety of products and services for color management imaging and data storage applications. Their product and service offerings are used to capture process store enhance manipulate reproduce and distribute information and images in a wide range of commercial and consumer markets including enterprise data center computing network computing desktop and mobile computing commercial printing marketing communications and graphic arts and consumer photography. Imation Corp. has a market cap of $356.5 million; its shares were traded at around $9.41 with and P/S ratio of 0.2.
Our worldwide revenue for the six months ended June 30, 2009 compared with the same period last year, was negatively impacted by overall price erosion of 10 percent, overall volume declines of 7 percent and unfavorable foreign currency translation of 4 percent. The continuing soft economy, particularly given our exposure to the financial sector, and the nature of the mature markets of some of our legacy tape products resulted in revenue declines in optical products of $107.4 million, magnetic products of $107.0 million and flash products of $13.5 million, offset by revenue growth in electronic products, accessories and other products of $4.1 million.
The decrease in SG&A expense for the three months ended June 30, 2009, compared with the same period last year, was primarily due to benefits from restructuring actions and aggressive cost control. SG&A included litigation expense of $6.5 million and $2.3 million during the three months ended June 30, 2009 and 2008, respectively, related primarily to the Philips dispute.
The decrease in SG&A expense for the six months ended June 30, 2009, compared with the same period last year, was primarily due to benefits from restructuring actions and aggressive cost control. SG&A included litigation expense of $13.0 million and $3.0 million during the six months ended June 30, 2009 and 2008, respectively, related primarily to the Philips dispute.
Restructuring and other expense was $4.0 million for the three months ended June 30, 2008, primarily related to restructuring charges of $7.1 million offset by income of $2.3 million associated with a TDK post-closing purchase price adjustment. Restructuring charges for the three months ended June 30, 2008 were related to lease termination costs of $1.9 million associated with the full settlement of a leased office space no longer utilized and severance and severance-related costs of $2.5 million.
The increase in other expense for the six months ended June 30, 2009, compared with the same period last year, was driven by a reserve of $4.0 million related to a note receivable from one of our commercial partners whose financial condition had significantly deteriorated, as well as additional foreign currency exchange losses of $3.1 million and lower interest income of $1.2 million.
Read the The complete ReportIMN is in the portfolios of Bruce Sherman of Private Capital Management, Third Avenue Management.
Imation Corp. develops manufactures and markets worldwide a widevariety of products and services for color management imaging and data storage applications. Their product and service offerings are used to capture process store enhance manipulate reproduce and distribute information and images in a wide range of commercial and consumer markets including enterprise data center computing network computing desktop and mobile computing commercial printing marketing communications and graphic arts and consumer photography. Imation Corp. has a market cap of $356.5 million; its shares were traded at around $9.41 with and P/S ratio of 0.2.
Highlight of Business Operations:
Our worldwide revenue for the three months ended June 30, 2009 compared with the same period last year, was negatively impacted by overall price erosion of 11 percent, volume declines of 7 percent and unfavorable foreign currency translation of 4 percent. The continuing soft economy, particularly given our exposure to the financial sector, and the nature of the mature markets of some of our legacy tape products resulted in revenue declines in optical products of $57.1 million, magnetic products of $51.8 million, flash products of $7.0 million and electronic products, accessories and other products of $3.2 million.Our worldwide revenue for the six months ended June 30, 2009 compared with the same period last year, was negatively impacted by overall price erosion of 10 percent, overall volume declines of 7 percent and unfavorable foreign currency translation of 4 percent. The continuing soft economy, particularly given our exposure to the financial sector, and the nature of the mature markets of some of our legacy tape products resulted in revenue declines in optical products of $107.4 million, magnetic products of $107.0 million and flash products of $13.5 million, offset by revenue growth in electronic products, accessories and other products of $4.1 million.
The decrease in SG&A expense for the three months ended June 30, 2009, compared with the same period last year, was primarily due to benefits from restructuring actions and aggressive cost control. SG&A included litigation expense of $6.5 million and $2.3 million during the three months ended June 30, 2009 and 2008, respectively, related primarily to the Philips dispute.
The decrease in SG&A expense for the six months ended June 30, 2009, compared with the same period last year, was primarily due to benefits from restructuring actions and aggressive cost control. SG&A included litigation expense of $13.0 million and $3.0 million during the six months ended June 30, 2009 and 2008, respectively, related primarily to the Philips dispute.
Restructuring and other expense was $4.0 million for the three months ended June 30, 2008, primarily related to restructuring charges of $7.1 million offset by income of $2.3 million associated with a TDK post-closing purchase price adjustment. Restructuring charges for the three months ended June 30, 2008 were related to lease termination costs of $1.9 million associated with the full settlement of a leased office space no longer utilized and severance and severance-related costs of $2.5 million.
The increase in other expense for the six months ended June 30, 2009, compared with the same period last year, was driven by a reserve of $4.0 million related to a note receivable from one of our commercial partners whose financial condition had significantly deteriorated, as well as additional foreign currency exchange losses of $3.1 million and lower interest income of $1.2 million.
Read the The complete ReportIMN is in the portfolios of Bruce Sherman of Private Capital Management, Third Avenue Management.
