imation072308
On the homepage
Vikings
Out There
Artcetera
Television
Imation profit jumps, but still shares tumble
Imation sales improve, but not enough to please analysts.
Print this story
E-mail this story
Save to del.icio.us
Share on Facebook
Share on Digg
Minnesota business by the numbers
See Minnesota's top earning companies, CEOs and non-profits
More from Business
Strong sales of recordable DVDs, flash drives and new consumer electronics products helped Imation post a 32 percent jump in revenue and an increase in second-quarter earnings Tuesday.
Although an improvement, results did not meet analysts' expectations and officials reduced their 2008 earnings outlook. Imation's stock price fell to $21 a share, down $1.18.
Second-quarter net income of 19 cents a share was 5 cents below analysts' expectations.
Officials acknowledged weakness in the company's U.S. and European tape media business but said strong optical disk and flash drive sales helped results. Income from Imation's recent acquisitions of TDK recording media and its Memorex branding arm, Memcorp, contributed to results, officials said.
Imation announced Tuesday that it will consolidate all magnetic tape coating operations in Oklahoma by year's end in a move designed to save $15 million to $20 million a year.
The company is shutting its tape plant in Camarillo, Calif., in addition to the previously announced closing of its Wahpeton, N.D., tape plant. About 140 positions will be cut in California and the company will incur up to $20 million in restructuring charges.
Dee DePass 2nd quarter FY2008, 6/30
2008 2007 % chg. Revenue $547.0 $412.8 +32.5 Income 7.2 -1.4 -- Earn/share 0.19 -0.04 --6 months
Revenue $1,077.9 $834.7 +29.1 Income 18.2 14.3 +27.3 Earn/share 0.48 0.41 +17.1Figures in millions except for earnings per share.
Recent Business stories
Motorola, Research in Motion sued over alleged patent violation for visual voicemail - July 22, 2008
Motorola, Research in Motion sued over alleged patent violation for visual voicemail - Patent holding company Klausner Technologies Inc. on Monday said it's suing Motorola Inc. and the maker of BlackBerry smartphones for allegedly violating its patent for visual voicemail. More
Blog: Patent Pending
Lights out at U energy conference. Irony police notified.
Just as Lawrence Kazmerski, a top official at the National Renewable Energy Laboratory, was about to give the keynote address at the University of Minnesota's annual E3 conference at the RiverCentre in St. Paul, the lights went out, bathing the audience in darkness and a deep sense of irony.
Comment on this story | Be the first to comment | Hide reader comments