Imation Corp. (IMN, Financial) filed Quarterly Report for the period ended 2010-06-30.
Imation Corp. has a market cap of $352.7 million; its shares were traded at around $9.24 with a P/E ratio of 36.9 and P/S ratio of 0.2. IMN is in the portfolios of Private Capital of Private Capital Management, Third Avenue Management, Chuck Royce of Royce& Associates.
During the three months ended June 30, 2009 we recorded severance and severance-related expense of $2.2 million for personnel reductions and severance and severance-related costs of $0.1 million related to our TDK recording media restructuring program which began during the third quarter of 2007. Other expense during the three months ended June 30, 2009 included $5.2 million in pension settlement costs as well as $2.3 million of asset impairment related to our Anaheim facility. Restructuring and other expense for the six months ended June 30, 2009 included severance and severance-related costs of $6.7 million and $0.2 million of other activities along with lease termination costs of $0.9 million, $5.2 million in pension settlement costs as well as $2.3 million of asset impairment related to our Anaheim facility. See Note 8 to the Condensed Consolidated Financial Statements herein.
Operating loss decreased for the three months ended June 30, 2010, compared with the same period last year, driven by the litigation settlement expense of $49.0 million in 2009 offset partially by the goodwill impairment of $23.5 million in 2010, lower operating expenses of $8.5 million and lower restructuring and other expenses of $6.4 million, offset partially by lower revenues resulting in lower gross profit of $4.9 million, each as discussed above.
Operating loss decreased for the six months ended June 30, 2010, compared with the same period last year, driven by the litigation settlement expense of $49.0 million in 2009 offset partially by the goodwill impairment of $23.5 million in 2010, lower operating expenses of $21.0 million, and lower restructuring and other of $7.9 million, offset partially by lower revenues resulting in lower gross profit of $10.1 million, each as discussed above.
Other expense, net for the six months ended June 30, 2010 included $3.0 million related to foreign currencies, $0.8 million related to bank fees, and $1.2 million of other expenses. Other expense, net for the six months ended June 30, 2009 included $5.6 million related to foreign currencies, $4.0 million for a reserve established related to a note receivable from one of our commercial partners and $1.0 million of other expenses.
The Americas segment is our largest segment comprising 51.1 percent of our revenue for the three months ended June 30, 2010. The Americas segment revenue decreased for the three months ended June 30, 2010, compared with the same period last year, due to price erosion of 10 percent and overall volume declines of 4 percent. From a product perspective, the decrease in revenue was driven primarily by the planned rationalization of lower gross margin video products resulting in lower revenue of $9.6 million, and lower revenue from optical products of $7.8 million and magnetic products of $5.7 million. Revenue decreased for the six months ended June 30, 2010, compared with the same period last year, due to price erosion of 10 percent and overall volume declines of 3 percent. From a product perspective, the decrease in revenue was driven primarily by the planned rationalization of lower gross margin video products resulting in lower revenue of $10.8 million, and lower revenue from optical products of $18.1 million and magnetic products of $15.4 million.
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Imation Corp. has a market cap of $352.7 million; its shares were traded at around $9.24 with a P/E ratio of 36.9 and P/S ratio of 0.2. IMN is in the portfolios of Private Capital of Private Capital Management, Third Avenue Management, Chuck Royce of Royce& Associates.
Highlight of Business Operations:
Restructuring expense for the three and six month periods ended June 30, 2010 was mainly related to our 2008 corporate redesign restructuring program and included severance related costs of $3.3 million and $4.9 million, respectively, and $0.1 and $0.3 million of lease termination costs, respectively. Other expenses for the six months ended June 30, 2010 included costs associated with the announced retirement of our former Vice Chairman and Chief Executive Officer, Mr. Russomanno, including a severance related charge of $1.4 million and a charge of $0.8 million related to the accelerated vesting of his unvested options and restricted stock.During the three months ended June 30, 2009 we recorded severance and severance-related expense of $2.2 million for personnel reductions and severance and severance-related costs of $0.1 million related to our TDK recording media restructuring program which began during the third quarter of 2007. Other expense during the three months ended June 30, 2009 included $5.2 million in pension settlement costs as well as $2.3 million of asset impairment related to our Anaheim facility. Restructuring and other expense for the six months ended June 30, 2009 included severance and severance-related costs of $6.7 million and $0.2 million of other activities along with lease termination costs of $0.9 million, $5.2 million in pension settlement costs as well as $2.3 million of asset impairment related to our Anaheim facility. See Note 8 to the Condensed Consolidated Financial Statements herein.
Operating loss decreased for the three months ended June 30, 2010, compared with the same period last year, driven by the litigation settlement expense of $49.0 million in 2009 offset partially by the goodwill impairment of $23.5 million in 2010, lower operating expenses of $8.5 million and lower restructuring and other expenses of $6.4 million, offset partially by lower revenues resulting in lower gross profit of $4.9 million, each as discussed above.
Operating loss decreased for the six months ended June 30, 2010, compared with the same period last year, driven by the litigation settlement expense of $49.0 million in 2009 offset partially by the goodwill impairment of $23.5 million in 2010, lower operating expenses of $21.0 million, and lower restructuring and other of $7.9 million, offset partially by lower revenues resulting in lower gross profit of $10.1 million, each as discussed above.
Other expense, net for the six months ended June 30, 2010 included $3.0 million related to foreign currencies, $0.8 million related to bank fees, and $1.2 million of other expenses. Other expense, net for the six months ended June 30, 2009 included $5.6 million related to foreign currencies, $4.0 million for a reserve established related to a note receivable from one of our commercial partners and $1.0 million of other expenses.
The Americas segment is our largest segment comprising 51.1 percent of our revenue for the three months ended June 30, 2010. The Americas segment revenue decreased for the three months ended June 30, 2010, compared with the same period last year, due to price erosion of 10 percent and overall volume declines of 4 percent. From a product perspective, the decrease in revenue was driven primarily by the planned rationalization of lower gross margin video products resulting in lower revenue of $9.6 million, and lower revenue from optical products of $7.8 million and magnetic products of $5.7 million. Revenue decreased for the six months ended June 30, 2010, compared with the same period last year, due to price erosion of 10 percent and overall volume declines of 3 percent. From a product perspective, the decrease in revenue was driven primarily by the planned rationalization of lower gross margin video products resulting in lower revenue of $10.8 million, and lower revenue from optical products of $18.1 million and magnetic products of $15.4 million.
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