20 July 2007 — Oakdale (MN): Imation has reported a Q2 loss, attributed to a steep rise in restructuring costs to integrate Memorex and other pricing issues.
The company posted a Q2 operating loss of $2.6 million, including $20.8 million of restructuring charges, compared to operating income of $18.6 million in Q2 2006, which included an $8.9 million restructuring charge.
Revenue was $412.8 million, an increase of 12.8 percent compared with $365.8 million a year earlier.
Frank Russomanno, president and CEO, said: "Similar to what we experienced in Q1, our gross profit margins in Q2 were impacted by continued aggressive pricing on flash drives and LTO tape media. In addition, product mix negatively impacted margins during the quarter. We also incurred certain additional costs in our Americas’ consumer business as we completed the Memorex integration, including logistics and IT systems integration."
