Imation Reports Q1

OAKDALE, Minn. -- Imation Corp. (NYSE:IMN) today released financial results for the quarter ended March 31, 2008.

Highlights for Q1 include the following:

• Revenue of $530.9 million was up 25.8 percent compared with Q1 2007
  revenue of $421.9 million. Growth was driven by optical and consumer
  electronics products primarily due to the TDK Recording Media and
  Memcorp acquisitions which closed in Q3 2007 as well as currency
  benefits.
• Q1 2008 operating income of $19.5 million and diluted earnings per
  share of $0.29 are compared with $23.6 million of operating income and
  diluted EPS of $0.44 in Q1 2007. Operating income in Q1 2008 included
  restructuring and other charges of $0.7 million. Diluted EPS included
  restructuring and other charges of $0.04 in Q1 2008.
• Cash generated from operations for the first quarter was $32.8 million
  and approximately 830,000 shares were repurchased during the quarter
  for $19.4 million.

Commenting on the results, Imation President and CEO Frank Russomanno said: "We are pleased with our Q1 earnings in the face of challenging economic conditions. We benefited from the TDK Recording Media acquisition, our restructuring actions and improved margins in optical and flash products. These factors helped offset declines in our legacy magnetic tape formats. Our gross margin improved over two percentage points compared with Q4, even on seasonally lower revenue. Operating expenses of $78.5 million were as expected and we anticipate further improvement as we continue to integrate our acquisitions."

Imation Corp.