Imation Corp. (IMN), a manufacturer of removable data storage media products and accessories, Thursday, reported a profit for the fourth quarter, compared to a loss last year, reflecting mainly lower restructuring costs as well as the absence of impairment charges incurred last year.
For the quarter, net income was $6.7 million or $0.18 per share compared to a loss of $45.6 million or $1.22 per share last year.
The fourth quarter had restructuring and other charges of $3.8 million or $0.04 per share, much lower than $9.9 million or $0.16 per share in the prior-year period. In addition, last year's fourth quarter had goodwill impairment charges of $32.4 million, or $0.64 per share.
Excluding items, net earnings per share would have been $0.22, including a $0.14 per share one-time tax benefit, compared with total loss per share of $0.42 in the prior-year period.
Net revenue declined 12.1% to $451.7 million from $513.9 million last year, hurt by volume declines of approximately 7%, price reduction by about 9.6%, partially offset by favorable currency impact of 4.5%.
By geography, revenues from Americas, representing 37.9% of net revenue, declined 4.4% to $171.2 million from $179.1 million last year. Revenues from Europe, which represented 22.2% of net revenue, were $100.3 million, down 21.5% from $127.7 million last year. Asia-Pacific, which represents 27.9% of total revenue, reported a 17.5% increase in revenue to $126.2 million from $107.4 million last year. Electronics products revenues, representing 12% of total revenue, were $54.0 million, down 45.8% compared to $99.7 million last year.
Product wise, revenues from optical products declined 7.1% to $194.1 million from $208.9 million last year. Revenues for magnetic products were $127.8 million, down 12.3% compared to $145.7 million last year. Flash media products had a 30.2% increase in revenue to $29.3 million from $22.5 million last year. Electronics products, accessories and other revenues were $100.5 million, down 26.5% compared to $136.8 million last year.
Gross margins improved 1.2 percentage points to 15.3% from 14.1%, primarily driven by higher margins on electronic and optical products, offset by continued revenue declines in higher margin tape products.
Operating income was $4.5 million compared with loss of $50.0 million last year. Adjusting for the impact of restructuring and other charges and a prior-year goodwill impairment charge, operating income was $8.3 million compared to a operating loss of $7.7 million.
For the full year, the company reported a wider net loss of $42.2 million or $1.13 per share compared to a loss of $33.3 million or $0.89 per share. Revenue for the year declined 16.7% to $1.65 billion from $1.98 billion last year.
IMN is currently trading at $9.15, up 0.77% on the NYSE.
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