Financial Briefs

OAKDALE, MINN. — Removable data storage media supplier Imation recorded data storage segment revenue of $245.3 million in the second quarter, an increase of 18.9 percent over the $206.3 million reported in the same three months last year. Operating income in the second quarter for the data storage segment soared 92.5 percent, to $23.1 million, compared with $12 million in the year-ago period. Overall company revenue for the second quarter reached $274.3 million, compared with $283.4 million in the same quarter in 2001. The three months last year included net revenue of $43.3 million and operating income of $4.3 million for sale of a business. Net income for the second quarter was $21.5 million, up from $9.9 million year over year. Excluding special items, the 2002 second quarter net income would have been $16 million. Imation expects full year, data storage revenue to increase 10 percent, with overall company gross margin at 29 percent to 30 percent. Overall operating income for 2002, including special items, is targeted in the range of $90 million, up from previous guidance of $80 million.

SANTA ANA, CALIF. — Although sales dropped 11 percent in the second quarter, to $5.4 billion, compared with $6 billion in the year-ago period, global technology products provider Ingram Micro recorded second quarter net income of $8.8 million, including reorganization costs, during the second three months. This compares with a net loss of $12 million in the second quarter of 2001. The company attributes its bottom-line performance to continued concentration on gross margin and reduction in cost structure. With sales comparisons continuing to be affected by slower demand for IT products worldwide, North American sales were 55 percent of the worldwide total in the first quarter, or $2.96 billion. This figure was 20 percent lower than the $3.69 billion reported in the second quarter of last year. The North American operating income before reorganization costs grew, despite the sales decline, to $27 million, up 4 percent, compared with the $25.9 million posted in the second quarter of last year. For the six months, sales in North America hit $6.1 billion, while operating income before reorganization costs reached $51.3 million. Overall six-month sales dropped 17 percent, to $11 billion, down from $13.2 billion year over year. The company reported a net loss for the six months of $256.6 million, compared with net income of $14.4 million in the same period a year ago.