Imation Announces Q4 Results, Restructuring
Imation (Oakdale, MN, Nyse: IMN) reports Q4 '97 financial results. Revenue of $568.8 million, down from $581.6 million in Q4 '96. A net loss of $157.8 million, including nearly $200 million in restructuring and special charges, compares with a $600,000 net loss. For the year Imation reports revenue of $2,201.8 million and a net loss of $180.1 million, compared with 1996 revenue of $2,278.2 million and a loss of $20.5 million. Pricing pressures and competition in low end data storage, printing plates and film, and conventional medical imaging contributed to the loss, according to chairman and CEO Bill Monahan. Imation has also announced cost-cutting measures to the tune of $35 million, which includes the elimination of up to 1,700 jobs in 1998. While traditional business is doing well, according to Monahan, Imation is looking for growth to come from its new solutions business, which will provide workflow solutions for graphics, corporate communications/marketing and medical imaging customers. During the quarter Imation named Sprint executive Roland LeMay and management consultant Michael Fields to its board of directors.