Imation Cuts Profit View

Imation (IMN Quote) boosted full-year revenue targets but said pricing pressure in its base business will hold down operating income.

The Minneapolis-based storage media company said it expects to make $1.91 to $2.04 a share for the year, excluding restructuring and acquisition costs, on revenue of $2 billion to $2.05 billion. Analysts surveyed by Thomson Financial were looking for a profit of $2.23 a share on revenue of $1.72 billion.

The company said it plans to buy back $100 million worth of stock.

Imation, which in January had forecast earnings of $2.29 to $2.42 a share on revenue of $1.8 billion, said the revised outlook "includes the anticipated impact from the integration of the pending acquisitions of the TDK Brand Recording Media and the Memcorp business as well as recent industry wide pricing pressures and continued pricing pressure on certain products."