Imation: Fiscal 3Q15 Financial Results - Exits the LTO Tape media and RDX Removable Disk Storage Markets

Imation Corp. released financial results for the third quarter ended September 30, 2015.

Q3 Overview
For the third quarter of 2015, Imation reported net revenue of $129.2 million, down 26.2% from Q3 2014.

Operating loss from continuing operations totaled $148.7 million, including special charges of $113.9 million and diluted loss per share from continuing operations was $3.70. The company had a cash balance of $94.3 million as of September 30, 2015.

On September 27, 2015, Imation adopted a restructuring plan in which it will terminate certain sales and operations of its worldwide Storage Media business, terminate certain sales and operations of its worldwide Consumer Storage and Accessories (CSA) business, and further reduce and rationalize its corporate overhead. This decision impacted the results for third quarter of 2015 due to increased costs for the associated inventory write-offs, accounts receivable write-offs and special charges. For the third quarter of 2015, special charges included restructuring and other of $40.2 million, intangible impairments of $37.6 million and goodwill impairments of $36.1 million.

Imation's Interim CEO Robert Fernander commented: "This was a very busy and productive quarter where we managed to accomplish a great deal toward positioning Imation as a more competitive company capable of continued growth and success. While these aggressive steps have impacted our key financial results and performance metrics for the quarter, we are confident that over the long-term the company and its shareholders will benefit from these necessary changes.

Imation is now out of the Tape Media and RDX removable Disk Storage business.  The RDX Business has been sold to Sphere 3D which is Overland Storage, which owns the brand Tandberg Data very prominent in the Removable Disk Storage industry.  Imation LTO-6 media will begin being phased out as well is the licensing of the TDK brand of LTO media.  On the RDX side, Tandberg data will continue to sell through the channel the Imation RDX brand for the time being.