Oakdale, Minn. — Imation released its first-quarter financial results today, showing its revenue was down 19.7 percent.
The company said first-quarter revenue, ended March 31, of $426.2 million was down 19.7 percent, compared with the first quarter of 2008.
According to Imation, the decrease was driven primarily by revenue declines in magnetic and optical products, offset partly by revenue growth in electronic products as well as external and removable hard-disk products.
The company reported an operating loss of $7.4 million and diluted loss per share of $0.31, compared with the prior’s year’s operating income of $19.5 million and diluted earnings per share of $0.29. This year’s operating loss included restructuring charges of $5.5 million, or $0.10 per diluted share.
Imation vice chairman and CEO Frank Russomanno said in a statement: “We continued to face a difficult economic environment in our major commercial and consumer markets during the first quarter. Although we generated an operating loss in the quarter, this was not unexpected.”
Russomanno said in the statement that Imation was “seeing the benefits of restructuring actions” the company had taken.
“At the same time,” he added, “we are continuing to execute our longer-term strategy to transform into a brand and product management company and are addressing areas with greater growth potential.
“Our financial position remains strong. During the quarter we generated positive operating cash flow and increased our cash balance. We are confident in our ability to withstand the current economic headwinds while positioning the company for success when global economic conditions begin to improve. We remain committed to our strategy and are intently focused on improving our financial performance and creating shareholder value,” Russomanno said.