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Imation released financial results for its third quarter, ended Sept. 30.
Third-quarter revenue was $527.5 million compared with $525.5 million during the same period in 2007. Operating loss was $8.7 million compared with operating income of $16.3 million for the prior-year quarter; the loss included charges of $16.3 million related mainly to previously announced restructuring actions, Imation said in a statement. Excluding these charges, operating income would have been $7.6 million in the third quarter of this year, it said.
Diluted loss per share was $0.16 for the third quarter of this year compared with $0.24 diluted earnings per share in the prior-year third quarter. Adjusting for the impacts of restructuring and related charges in the third quarter of this year of $0.27 per share, diluted earnings per share would have been $0.11 for Q3 2008 compared with $0.23 for Q3 2007.
Imation said it “is in the process of analyzing its cost structure to further reduce operating expenses. Additional information including potential restructuring charges, timing and impacts will be disclosed in the coming weeks as plans are finalized.”
Frank Russomanno, Imation president and CEO, said in the statement, “Revenue and earnings were substantially below the company's previous expectations. Demand slowed across several sectors in the U.S. and Europe and more recently in Japan. We have been negatively impacted by a slowdown in consumer spending for consumer electronics and optical media … We expect the same factors that affected us in Q3 to continue to impact our business in Q4.
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