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Technology Stocks : Imation (IMN) -- Ignore unavailable to you. Want to Upgrade?

To: Ronald Ashkenazy who wrote (48)	5/7/1998 6:10:00 AM
From: Ronald Ashkenazy	Read Replies (1) \| Respond to of 103

Imation Corp. Reports $0.05 EPS on $519.4 Million Revenues for First Quarter OAKDALE, Minn.--(BUSINESS WIRE)--May 7, 1998 Imation Corp. (IMN:NYSE) today reported first quarter results for the period ending March 31, 1998. The company reported net income of $2.0 million, or $.05 earnings per share, on revenues of $519.4 million. This compares with net income of $12 million, or $.29 earnings per share on revenues of $547.7 million for the comparable period last year. Commenting on the results, Bill Monahan, Imation's chairman and chief executive officer said: "We knew the first half of this year would be difficult from a revenue and earnings standpoint and our first quarter results were in line with expectations. Volume grew 3.8 percent globally but was offset by pricing pressure and the negative effects of currency translation." Pricing declines of 5.5 percent and translation impacts of 3.5 percent, offset by volume growth, resulted in total revenues for the quarter declining 5.2 percent compared with the first quarter of 1997. Gross margins declined from the same quarter a year ago, with more than half the decline driven by the strength of the dollar. "With the launch of the Company's Save a Little, Save a Lot, SuperDisk advertising and promotion campaigns last March, stressing the backward compatibility of SuperDisk technology, we are seeing a sharp increase in awareness and interest," Monahan said. "Nine months ago, only one OEM (original equipment manufacturer) offered SuperDisk technology to its customers but now nearly 40 OEM's offer SuperDisk technology. Recognizing our knowledge of workflow solutions, several customers have asked Imation to help them manage their significant digital assets. Recently, Minnesota Public Radio chose Imation to define a digital workflow solution to manage their audio inventory. In our medical imaging business, DryView technology continues to set the standard for laser imagers, capturing a significant share of the market with more than 4,000 imagers now installed worldwide. Film revenues exceeded imager revenues for the first time as the DryView medical program contributed positively to! our first quarter results. Acceptance of our Travan and enterprise tape data storage products continues to grow as we target the network and higher capacity needs of our customers," he added. The Company recorded restructuring and special charges of $199.9 million pre-tax in the fourth quarter of fiscal 1997. The Company expects cost eliminations from the restructuring actions to result in a benefit in fiscal 1998 of about $35 million, most of which will occur in the second half of 1998, and a benefit in the range of $90 million on an annualized basis. Net cash payments associated with these actions are anticipated to be approximately $100 million in 1998. "Our restructuring is designed to reduce costs, increase our focus and accelerate the change in our culture. While difficult, the actions we are taking are necessary to enhance Imation's sustainable profitability. I'm confident these actions will unleash the value in Imation," Monahan concluded. Through the restructuring program, the Company's total net headcount is expected to fall by approximately 1,700 worldwide from the end of 1997 to the end of 1998. The employee population totaled approximately 9,500 at the end of the quarter, down from 9,800 the previous quarter. Imation Corp. supplies a variety of products and services worldwide for the imaging and information industry, specializing in imaging and data storage applications. The Company generated revenues of approximately $2.2 billion in 1997. Additional information about Imation is available on the Company's web site at imation.com or by calling toll-free at 1-888-466-6973.