Imation Corp. (NYSE:IMN) today released financial results for the first quarter ended March 31, 2014. The Company also announced that it has closed on the sale of its XtremeMac business and continues to execute on its strategic transformation.
For the first quarter of 2014, Imation reported net revenue of $178.9 million, down 20.3 percent from Q1 2013, an operating loss from continuing operations of $16.1 million, including special charges of $2.1 million, diluted loss per share from continuing operations of $0.41 and a cash balance of $126.2 million.
Imation’s CEO Mark Lucas commented, “In 2011, we embarked on a strategic transformation to leverage Imation’s roots in data storage to become a major player in higher-growth, higher-margin industry segments. Since then, we have exited two low-margin consumer electronics businesses, acquired Nexsan TM and built a mobile security portfolio. We have done this with urgency, since approximately 65 percent of our volume is in declining businesses.”“During the first quarter of 2014, we continued to build for the future, and our results were in line with our overall expectations. Performance in our Consumer Storage and Accessories segment came in stronger than anticipated, with our Tiered Storage and Security Solutions segment a bit soft. As our growth investments in sales and channel resources and new products take root, and as the sluggish IT environment improves, we expect our revenues in this segment to increase. Nexsan participates in a very attractive market; hybrid storage has a 21 percent growth rate and is on a trajectory to become 45 percent of the external storage market by 2017. We are confident we are on the right course for long-term growth.” Lucas continued, “From an operations perspective, we are pleased with both our working capital and cash management efforts. Our effective cost controls led to a drop of almost $6 million in SG&A expenses, and we will continue to rigorously monitor our cost structure going forward.”