The nearly dissolved Imation Corp. announced Tuesday that it will operate in the future as a holding company with a single California-based subsidiary that focuses on data storage.
The former Oakdale-based firm, which spun off from 3M two decades ago, struggled for years before new managers decided to shut down or sell many aspects of the company last year.
Imation on Tuesday announced that it had completed its legacy business “wind down” during the first quarter of this year.
“The financial results related to the legacy businesses are reported as discontinued operations. Going forward, Imation will operate as a holding company with a subsidiary (Nexsan) engaged in the business of global data storage,” officials said in a statement.
Imation is continuing a strategic review and exploration for “new opportunities that will allow it to pursue a diverse range of business opportunities and deploy its excess cash,” officials said.
The changes started a year ago after shareholders ousted three board members, including CEO Mark Lucas, who later stepped down.
By October, four top executives were fired and Imation announced it was closing its legacy storage and media business and terminating its deal with Japanese electronics maker TDK to focus on data storage and security.
In January of this year, Imation sold its headquarters campus to Slumberland Furniture for $11.5 million and sold its most recognized brand, Memorex, along with two other trademark licenses. In February, the New York Stock Exchange informed Imation that it was at risk of being delisted from the exchange because its stock sold for less than $1.
A decade ago, Imation had bragging rights with 2,550 employees and $1.2 billion in annual sales. No more.
On Tuesday, Imation reported that first-quarter revenue from the Nexsan subsidiary fell 32 percent to $10.7 million due to the shuttering of underperforming and low-margin business. The operating loss from continuing operations (excluding special charges) was $9.6 million, compared with a loss of $13.8 million in the same period a year ago.
The company’s cash balance and short-term investments totaled $63 million as of March 31. The stock closed slightly down Tuesday, at $1.68 a share.