said third-quarter revenue and income will be well below analysts' expectations because of weaker-than-expected demand, pricing pressure, lower SuperDisk drive sales and weak foreign currencies.
The data storage and imaging systems maker said revenue for the third quarter will be about 16% below the $364 million reported a year ago. Operating income, before restructuring charges and write-offs, will be about break-even. The company recorded a profit of 37 cents a share in the same period a year ago.
First Call/Thomson Financial
survey of two analysts produced an earnings estimate of 40 cents a share for Imation's third quarter.
The company expects to record $32 million in restructuring charges and a $66 million noncash software write-off in the second half of the year. These charges would result in an annualized expense reduction of $40 million. As part of the cost-cutting moves, Imation plans to cut about 10% of its work force by the end of 2001.
Additionally, Imation hired
to assist the company in exploring strategic alternatives, such as financial restructuring, stock repurchases, spin-offs, joint ventures and business combinations.
The company, which will release its third-quarter results on Oct. 24, also indicated that operating income for the full year, excluding the restructuring charges and write-offs, will be below previous expectations of $67 million to $71 million.