11 February 2005 – Oakdale (MN): Imation said yesterday that it will revise its Q4 results from a profit to a loss after recording a $13 million loss relating to a legal settlement.
Imation said that a trial began early last month over claims that it sold defective photo film to Jazz Photo, which is currently operating under Chapter 11 protection.
The case involved a business previously sold by Imation, and if the settlement is approved it will record a charge of $13 million for discontinued operations in its Q4 results. The company will now report a loss of $7.9 million, or EPS of $0.23 as opposed to a quarterly profit of $5.1 million.
Imation’s CEO Bruce Henderson maintained that the company disputed the claims against it but "the opportunity to end this dispute would remove a significant distraction to the company and eliminate ongoing litigation expense."
