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Imation Reports Fourth Quarter And Full Year 2012 Results And Additional Steps In Transformation To A Secure And Scalable Storage Company

Imation Corp. (NYSE:IMN), a global scalable storage and data security company, today released financial results for its 2012 fourth quarter and fiscal year ended December 31, 2012. The Company also provided an update on its continued strategic transformation.

CEO Mark Lucas said, “Imation’s opportunity for higher margin, differentiated products is in our Secure and Scalable Storage portfolio which grew 16.7 percent in the fourth quarter and rose to 21 percent of total revenues, up from 15.7 percent a year earlier. With our recently announced purchase of Nexsan, we expect to derive more revenue from this category in the future. As anticipated, our audio and video information category declined 23.6 percent and will drop further given the divestitures we are announcing today. We have discussed previously that our traditional storage business is in secular decline; therefore, we are acting with urgency to reduce our cost structure and transform Imation into a company focused on high growth markets in data storage and data security.”

Imation reported Q4 2012 net revenue of $299.1 million, down 12.6 percent from Q4 2011. Special charges were $305.2 million, creating an operating loss of $310.4 million, and a diluted loss per share of $8.34. Special charges included intangible asset impairments of $260.5 million, goodwill impairment of $23.3 million and other charges of $21.4 million. Excluding special charges, Q4 2012 operating loss would have been $5.2 million and diluted loss per share would have been $0.14.

For the full year 2012, revenue was $1.1 billion, down 14.8 percent from 2011, and the operating loss was $336.1 million, or $9.09 per diluted share. Special charges for the full year were $307.2 million and excluding these special charges, 2012 operating loss would have been $28.9 million, and diluted loss per share would have been $0.90. EBITDA for the year totaled $6.9 million and for the fourth quarter was $2.8 million (See Tables Five and Six for non-GAAP measures).

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