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Imation Reports Fourth Quarter and Full Year 2012 Results and Additional Steps in Transformation to a Secure and Scalable Storage Company

Imation Corp. (NYSE:IMN), a global scalable storage and data security company, today released financial results for its 2012 fourth quarter and fiscal year ended December 31, 2012. The Company also provided an update on its continued strategic transformation.

CEO Mark Lucas said, “Imation’s opportunity for higher margin, differentiated products is in our Secure and Scalable Storage portfolio which grew 16.7 percent in the fourth quarter and rose to 21 percent of total revenues, up from 15.7 percent a year earlier. With our recently announced purchase of Nexsan, we expect to derive more revenue from this category in the future. As anticipated, our audio and video information category declined 23.6 percent and will drop further given the divestitures we are announcing today. We have discussed previously that our traditional storage business is in secular decline; therefore, we are acting with urgency to reduce our cost structure and transform Imation into a company focused on high growth markets in data storage and data security.”

Imation reported Q4 2012 net revenue of $299.1 million, down 12.6 percent from Q4 2011. Special charges were $305.2 million, creating an operating loss of $310.4 million, and a diluted loss per share of $8.34. Special charges included intangible asset impairments of $260.5 million, goodwill impairment of $23.3 million and other charges of $21.4 million. Excluding special charges, Q4 2012 operating loss would have been $5.2 million and diluted loss per share would have been $0.14.

For the full year 2012, revenue was $1.1 billion, down 14.8 percent from 2011, and the operating loss was $336.1 million, or $9.09 per diluted share. Special charges for the full year were $307.2 million and excluding these special charges, 2012 operating loss would have been $28.9 million, and diluted loss per share would have been $0.90. EBITDA for the year totaled $6.9 million and for the fourth quarter was $2.8 million (See Tables Five and Six for non-GAAP measures).

Transformation Strategy

Imation is currently in the midst of a strategic transformation to build a long-term platform for growth, increased margins and improved profitability. The Company is accelerating this transformation through a number of actions including the following:

  • Nexsan Acquisition - On December 31, 2012, Imation acquired Nexsan Corporation, a successful, higher margin, disk-based and hybrid disk-and-solid-state storage systems company, to invest in growth platforms for data storage solutions. The acquisition is expected to significantly contribute to Imation’s growth in the small- and medium-sized business and distributed enterprise storage markets, and Imation will provide the Nexsan business with global scale and a well-known storage brand.
  • Exiting Lower Margin Businesses - As the Company intensified its focus on data storage and data security, management announced in the third quarter that Imation would be exploring strategic alternatives for the consumer electronics brands and businesses. Imation has decided to divest its Memorex and XtremeMac consumer electronics businesses. The Company will continue its TDK Life on Record business on a more focused basis. Lucas commented, “Divesting the Memorex and XtremeMac consumer electronics brands will allow us to direct our time and resources to the right opportunities in data storage and security, as well as our retail optical business under the Memorex and TDK Life on Record brands.”
  • Cost Reductions - As previously reported, Imation is aggressively implementing cost savings initiatives to right size the Company. Management is targeting to exceed a 25 percent reduction in operating expenses.
  • Business Structure Realignment - Also, as previously announced, to better align the Company with its key commercial and retail segments, Imation established two new business units effective January 1, 2013: Tiered Storage and Security Solutions (TSS) and Consumer Storage and Accessories (CSA). The two segments will be independently managed and provide a focused customer-centric structure, resulting in faster decision-making, clear accountability, a more nimble organization and increased efficiency worldwide.

“We are committed to transforming the Company and building a sustainable platform for growth, increased margins and long-term shareholder value. Combined, the acquisition of Nexsan, divestiture of certain consumer businesses, improvements in cost structure, and a more efficient business unit model truly represent an acceleration of our transformation strategy. In 2013, we are building on these actions and moving as swiftly as we can to become a major player in data storage and security on a global basis,” Lucas concluded.

Detailed Q4 2012 Analysis

Net revenue for Q4 2012 was $299.1 million, down 12.6 percent from Q4 2011. From a regional perspective, Americas revenue decreased 22.2 percent driven by optical and consumer electronics revenue reductions; Europe revenue decreased 7.7 percent; North Asia revenue increased 0.6 percent and South Asia revenue decreased 3.8 percent.

Gross margin for Q4 2012 was 16.1 percent, up from 15.0 percent in Q4 2011. Gross margin was 16.9 percent excluding inventory write offs of $2.3 million, which were part of the Company’s restructuring program, compared to 17.2 percent on the same basis in 2011.

Selling, general and administrative (SG&A) expenses for Q4 2012 were $50.5 million, down $2.4 million compared with Q4 2011 expenses of $52.9 million.

Research and development (R&D) expenses for Q4 2012 were $5.1 million, down $0.9 million compared with Q4 2011 expenses of $6.0 million.

Special charges were $305.2 million in Q4 2012 consisting of intangible asset impairments of $260.5 million, goodwill impairment of $23.3 million and $21.4 million of restructuring and other charges. The intangible asset charges, which related primarily to the Memorex International Inc. acquisition in 2006 and TDK Recording Media acquisition in 2007, were driven mainly by an accelerated optical market secular decline. Special charges were $12.3 million in Q4 2011 (See Tables Five and Six for non-GAAP measures).

Operating loss was $310.4 million in Q4 2012 compared with an operating loss of $12.1 million in Q4 2011. Excluding the impact of special charges described above, adjusted operating loss would have been $5.2 million in Q4 2012 compared with adjusted operating income on the same basis of $0.2 million in Q4 2011.

Income tax benefit was $1.0 million in Q4 2012 compared with income tax benefit of $0.7 million in Q4 2011. The Company maintains a valuation allowance related to its U.S. deferred tax assets and, therefore, no tax provision or benefit was recorded related to its 2012 U.S. results.

Loss per diluted share was $8.34 in Q4 2012 compared with $0.34 in Q4 2011. Excluding the impact of special charges described above, adjusted loss per diluted share would have been $0.14 in Q4 2012 compared with $0.14 in Q4 2011.

Cash and cash equivalents balance was $108.7 million as of December 31, 2012, down $77.6 million during the quarter, driven primarily by the payment of $104.6 million in cash for the Nexsan acquisition, offset by short-term borrowings of $20.0 million and net cash provided by operations of $14.1 million.

Webcast and Replay Information

A teleconference is scheduled for 9:00 AM Central Time today, February 13, 2013, and will be available on the Internet on a listen-only basis at www.ir.Imation.com or www.streetevents.com. The Company's quarterly financial results will be discussed.

A taped replay of the teleconference will be available beginning at 12:30 p.m. Central time today, February 13, 2013, until 11:00 p.m. Central time February 20, 2013 by dialing 855-859-2056 (Conference ID #64544023). All remarks made during the teleconference will be current at the time of the call and the replay will not be updated to reflect any subsequent developments.

Description of Tables

Table One - Consolidated Statements of Operations

Table Two - Consolidated Balance Sheets

Table Three - Supplemental Segment and Product Information

Table Four - Operations, Cash Flow and Additional Information

Table Five - Non-GAAP Financial Measures

Table Six - Non-GAAP Financial Measures

Non-GAAP Financial Measures

The Non-GAAP financial measurements (including adjusted operating income (loss), adjusted income (loss) per diluted share, adjusted gross margin and EBITDA) are provided to assist in understanding the impact of certain items on Imation's actual results of operations when compared with prior periods (see Tables Five and Six). Management believes this will assist investors in making an evaluation of Imation's performance against prior periods on a comparable basis by adjusting for these items. Management understands that there are material limitations on the use of Non-GAAP measures. Non-GAAP measures are not substitutes for GAAP measures for the purpose of analyzing financial performance. These Non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, generally accepted accounting principles and may be different from Non-GAAP measures used by other companies. In addition, these Non-GAAP measures are not based on any comprehensive set of accounting rules or principles. This information should not be construed as an alternative to the reported results, which have been determined in accordance with accounting principles generally accepted in the United States of America.

Accounting Valuations Not Yet Finalized

The financial statements released today reflect the impacts associated with the purchase price allocation from the acquisition of Nexsan Corporation as well as impairment charges related to intangible assets and goodwill from prior acquisitions. These items are subject to change pending finalization of the required valuations. We expect all applicable information to be finalized prior to the filing of the Imation Form 10-K in March.

About Imation Corp.

Imation (NYSE: IMN) is a global scalable storage and data security company. Imation reaches customers in more than 100 countries through a powerful global distribution network and well recognized brands. Additional information about Imation is available at www.imation.com.

Risk and Uncertainties

Certain information contained in this press release which does not relate to historical information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause our actual results in the future to differ materially from our historical results and those presently anticipated or projected. We wish to caution investors not to place undue reliance on any such forward-looking statements. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. Risk factors include our ability to successfully implement our strategy; our ability to grow our business in new products with profitable margins and the rate of revenue decline for certain existing products; the ability of our data security products to withstand cyber-attacks; the ability to quickly develop, source, introduce and deliver differentiating and innovative products; our potential dependence on third parties for new product introductions or technologies in order to introduce our own new products; the ready availability and price of energy and key raw materials or critical components including due to the effects of natural disasters and our ability to pass along raw materials price increases to our customers; continuing uncertainty in global and regional economic conditions including adverse effects of the ongoing sovereign debt crisis in Europe, increased Euro currency exchange rate volatility, and related austerity measures and their potential impact on European economic growth; our ability to identify, value, integrate and realize the expected benefits from any acquisition which has occurred or may occur in connection with our strategy; the possibility that our goodwill or any goodwill that we acquire may become impaired; the seasonality and volatility of the markets in which we operate; foreign currency fluctuations; changes in European law or practice related to the imposition or collectability of optical levies; significant changes in discount rates and other assumptions used in the valuation of our pension plans; the possibility that our intangible assets may become impaired; acquisition related contingent consideration, which is recorded at fair value and revalued each period, differs from the obligation recorded during the previous period resulting in income or expense being recorded on the consolidated statements of operations; changes in tax laws, regulations and results of inspections by various tax authorities; our ability to successfully defend our intellectual property rights and the ability or willingness of our suppliers to provide adequate protection against third party intellectual property or product liability claims; the outcome of any pending or future litigation; failure to adequately protect our information systems from cyber-attacks; our ability to meet our revenue growth, gross margin and earnings targets and the volatility of our stock price due to our results or market trends, as well as various factors set forth from time to time in our filings with the Securities and Exchange Commission.

Table One

 
IMATION CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except for per share amounts)
(Unaudited)
     
Three Months Ended Twelve Months Ended
December 31 December 31
2012     2011 2012     2011
Net revenue $ 299.1 $ 342.3 $ 1,099.6 $ 1,290.4
Cost of goods sold   251.0     290.8     897.3     1,073.7  
Gross profit 48.1 51.5 202.3 216.7
 
Operating expense:
Selling, general and administrative 50.5 52.9 210.7 203.7
Research and development 5.1 6.0 22.8 21.0
Goodwill impairment 23.3 - 23.3 1.6
Intangible impairment 260.5 - 260.5 -
Litigation settlement - - - 2.0
Restructuring and other   19.1     4.7     21.1     21.5  
Total 358.5 63.6 538.4 249.8
 
Operating loss (310.4 ) (12.1 ) (336.1 ) (33.1 )
 
Other expense (income):
Interest income (0.1 ) (0.2 ) (0.5 ) (0.9 )
Interest expense 0.5 1.0 2.9 3.7
Other, net   0.4     0.7     2.6     7.0  
Total 0.8 1.5 5.0 9.8
 
Loss before income taxes (311.2 ) (13.6 ) (341.1 ) (42.9 )
 
Income tax (benefit) provision   (1.0 )   (0.7 )   (0.4 )   3.8  
 
Net loss $ (310.2 ) $ (12.9 ) $ (340.7 ) $ (46.7 )
 
(Loss) earnings per common share
Basic $ (8.34 ) $ (0.34 ) $ (9.09 ) $ (1.24 )
Diluted (8.34 ) (0.34 ) (9.09 ) (1.24 )
 
Weighted average shares outstanding
Basic 37.2 37.4 37.5 37.7
Diluted 37.2 37.4 37.5 37.7
 
 
*These Financial Statements and information presented in the following tables reflect the impacts associated with the purchase price allocation from the acquisition of Nexsan Corporation as well as impairment charges related to intangible assets and goodwill from prior acquisitions. These items are subject to change pending finalization of the required valuations. We expect all applicable information to be finalized prior to the filing of the Imation Form 10-K in March.
 

Table Two

 
IMATION CORP.
CONSOLIDATED BALANCE SHEETS *
(In millions)
(Unaudited)
     
December 31, December 31,
2012 2011
ASSETS
Current assets
Cash and cash equivalents $ 108.7 $ 223.1
Accounts receivable, net 220.8 234.9
Inventories 166.0 208.8
Other current assets   61.4   49.7
 
Total current assets 556.9 716.5
 
Property, plant and equipment, net 58.9 55.4
Intangible assets, net 81.9 321.7
Goodwill 73.5 31.3
Other assets   21.1   24.4
 
Total assets $ 792.3 $ 1,149.3
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 162.7 $ 205.2
Other current liabilities 157.8 151.2
Short-term debt   20.0   -
 
Total current liabilities 340.5 356.4
 
Other liabilities 51.4 69.2
       
Total liabilities   391.9   425.6
Commitments and contingencies        
Shareholders' equity   400.4   723.7
 

Total liabilities and shareholders' equity

$ 792.3 $ 1,149.3
 
 
*These Financial Statements and information presented in the following tables reflect the impacts associated with the purchase price allocation from the acquisition of Nexsan Corporation as well as impairment charges related to intangible assets and goodwill from prior acquisitions. These items are subject to change pending finalization of the required valuations. We expect all applicable information to be finalized prior to the filing of the Imation Form 10-K in March.
 

Table Three

 
IMATION CORP.
SUPPLEMENTAL SEGMENT AND PRODUCT INFORMATION
(Dollars in millions)
(Unaudited)
         

Three months ended
December 31,

Three months ended
December 31,

2012 2011 % Change
Revenue % Total Revenue % Total
Americas $ 131.1 43.8 % $ 168.6 49.3 % -22.2 %
Europe 59.8 20.0 % 64.8 18.9 % -7.7 %
North Asia 78.1 26.1 % 77.6 22.7 % 0.6 %
South Asia   30.1   10.1 %   31.3   9.1 % -3.8 %
Total $ 299.1   100.0 % $ 342.3   100.0 %
 
Revenue % Total Revenue % Total
Traditional storage
Optical products $ 109.0 36.5 % $ 128.1 37.4 % -14.9 %
Magnetic products 71.2 23.8 % 82.7 24.2 % -13.9 %
Other traditional storage   3.7   1.2 %   9.1   2.7 % -59.3 %
Total traditional storage 183.9 61.5 % 219.9 64.3 % -16.4 %
Secure and scalable storage 62.8 21.0 % 53.8 15.7 % 16.7 %
Audio and video information   52.4   17.5 %   68.6   20.0 % -23.6 %
Total $ 299.1   100.0 % $ 342.3   100.0 %
 
 

Operating Income
(Loss)

OI %

Operating Income
(Loss)

OI %
Americas $ (0.1 ) -0.1 % $ 6.1 3.6 % -101.6 %
Europe 1.9 3.2 % 2.5 3.9 % -24.0 %
North Asia 3.1 4.0 % 3.4 4.4 % -8.8 %
South Asia (0.2 ) -0.7 % 1.7 5.4 % -111.8 %
Corp/Unallocated (1)   (315.1 ) NM     (25.8 ) NM   NM
Total $ (310.4 ) -103.8 % $ (12.1 ) -3.5 %
 
Gross Margin Gross Margin
 
Traditional storage 17.8 % 19.1 %
Secure and scalable storage 14.6 18.0
Audio and video information   16.0     10.8  
16.9 17.2

Inventory write-offs related to restructuring programs

  (0.8 )   (2.2 )
Total   16.1   %   15.0   %
 

Twelve months ended
December 31,

Twelve months ended
December 31,

2012 2011 % Change
Revenue % Total Revenue % Total
Americas $ 504.7 45.9 % $ 595.9 46.2 % -15.3 %
Europe 208.8 19.0 % 248.0 19.2 % -15.8 %
North Asia 272.5 24.8 % 307.2 23.8 % -11.3 %
South Asia   113.6   10.3 %   139.3   10.8 % -18.4 %
Total $ 1,099.6   100.0 % $ 1,290.4   100.0 %
 
 
Revenue % Total Revenue % Total
Traditional storage
Optical products $ 426.8 38.8 % $ 511.9 39.7 % -16.6 %
Magnetic products 286.2 26.0 % 327.4 25.3 % -12.6 %
Other traditional storage   15.4   1.4 %   47.7   3.7 % -67.7 %
Total traditional storage 728.4 66.2 % 887.0 68.7 % -17.9 %
Secure and scalable storage 210.1 19.1 % 210.1 16.3 % 0.0 %
Audio and video information   161.1   14.7 %   193.3   15.0 % -16.7 %
Total $ 1,099.6   100.0 % $ 1,290.4   100.0 %
 
 

Operating Income
(Loss)

OI %

Operating Income
(Loss)

OI %
Americas $ 2.9 0.6 % $ 8.4 1.4 % -65.5 %
Europe (3.9 ) -1.9 % 10.3 4.2 % -137.9 %
North Asia 5.9 2.2 % 12.5 4.1 % -52.8 %
South Asia 0.6 0.5 % 4.0 2.9 % -85.0 %
Corp/Unallocated (1)   (341.6 ) NM     (68.3 ) NM   NM
Total $ (336.1 ) -30.6 % $ (33.1 ) -2.6 %
 
Gross Margin Gross Margin
 
Traditional storage 19.0 % 19.0 %
Secure and scalable storage 18.8 15.1
Audio and video information   16.4     13.0  
18.6 17.5
Inventory write-offs related to restructuring programs   (0.2 )   (0.7 )
Total   18.4   %   16.8   %
 
 

NM - Not Meaningful

(1) Corporate and unallocated amounts include inventory write-offs related to restructuring programs, goodwill impairment, intangible impairment, intangible accelerated amortization, research and development expense, corporate expense, stock-based compensation expense, and restructuring and other charges that are not allocated to the regional markets we serve. We believe this avoids distorting the operating income for the regional segments.
 

Table Four

 
IMATION CORP.
OPERATIONS, CASH FLOW AND ADDITIONAL INFORMATION
(Dollars in millions)
(Unaudited)
             
 
Three Months Ended Twelve Months Ended
(Dollars in millions) December 31 December 31
2012 2011 2012 2011
Operations
Gross Profit $ 48.1 $ 51.5 $ 202.3 $ 216.7
Gross Margin % 16.1 % 15.0 % 18.4 % 16.8 %
Operating (Loss) Income $ (310.4 ) $ (12.1 ) $ (336.1 ) $ (33.1 )
Operating (Loss) Income % -103.8 % -3.5 % -30.6 % -2.6 %
 
Cash Flow
Net cash (used in) provided by operating activities $ 14.1 $ 15.3 $ (8.5 ) $ (16.3 )
Net cash (used in) provided by investing activities $ (109.6 ) $ (22.2 ) $ (115.7 ) $ (54.3 )
Net cash (used in) provided by financing activities $ 18.4 $ - $ 9.9 $ (9.1 )
Cash and cash equivalents - end of period $ 108.7 $ 223.1 $ 108.7 $ 223.1
 
Capital Spending $ 1.8 $ 1.2 $ 10.2 $ 7.3
Depreciation $ 2.2 $ 2.3 $ 8.3 $ 10.7
Amortization $ 5.8 $ 7.2 $ 27.5 $ 26.0
 

NM - Not Meaningful

 

Asset Utilization Information *

December 31 December 31
2012 2011
 
Days Sales Outstanding (DSO) 59 58
Days of Inventory Supply 89 85
Debt to Total Capital 4.8 % 0.0 %
 

Other Information

 

**

Approximate employee count as of December 31, 2012:

1,230
Approximate employee count as of December 31, 2011: 1,130
Book value per share as of December 31, 2012: $ 9.94
Shares used to calculate book value per share (millions): 40.3
Imation repurchased approximately 396,0000 shares of its stock during the quarter for $1.7 million.
Authorization for repurchase of approximately 3.8 million shares remains outstanding based on the latest Board authorization.
 

*

These operational measures, which we regularly use, are provided to assist in the investor's further understanding of our operations.

 

**

Includes approximately 200 employees of Nexsan Corporation which was acquired on December 31, 2012.

 

Days Sales Outstanding is calculated using the count-back method, which calculates the number of days of most recent revenue that are reflected in the net accounts receivable balance.

 

Days of Inventory Supply is calculated using the current period inventory balance divided by an estimate of the inventoriable portion of cost of goods sold expressed in days. December 31, 2012 amount excludes Nexsan Corporation.

 

Debt to Total Capital is calculated by dividing total debt (long term plus short term) by total shareholders' equity and total debt.

 

Table Five

 
IMATION CORP.
Non-GAAP Financial Measures
(In millions, except for per share amounts)
(Unaudited)
                     
Three Months Ended Three Months Ended
December 31, 2012 December 31, 2011
GAAP Adj * Non-GAAP GAAP Adj * Non-GAAP
Net revenue $ 299.1 $ - $ 299.1 $ 342.3 $ - $ 342.3
Cost of goods sold   251.0     (2.3 )   248.7     290.8     (7.6 )   283.2  
Adjusted gross profit $ 48.1   $ 2.3   $ 50.4   $ 51.5   $ 7.6   $ 59.1  
 
Adjusted gross margin 16.1 % 16.9 % 15.0 % 17.2 %
 
Operating (loss) income $ (310.4 ) $ 305.2 $ (5.2 ) $ (12.1 ) $ 12.3 $ 0.2
 
Adjusted income tax provision (benefit) $ (1.0 ) $ 0.1 $ (0.9 ) $ (0.7 ) $ 4.6 $ 3.9
 
Adjusted (loss) income $ (310.2 ) $ 305.1 $ (5.1 ) $ (12.9 ) $ 7.7 $ (5.2 )
 
Adjusted (loss) earnings per common share - Diluted $ (8.34 ) $ (0.14 ) $ (0.34 ) $ (0.14 )
 
Adjusted weighted average shares outstanding - Diluted 37.2 37.2 37.4 37.4
 
 
Twelve Months Ended Twelve Months Ended
December 31, 2012 December 31, 2011
GAAP Adj * Non-GAAP GAAP Adj * Non-GAAP
Net revenue $ 1,099.6 $ - $ 1,099.6 $ 1,290.4 $ - $ 1,290.4
Cost of goods sold   897.3     (2.3 )   895.0     1,073.7     (9.1 )   1,064.6  
Adjusted gross profit $ 202.3   $ 2.3   $ 204.6   $ 216.7   $ 9.1   $ 225.8  
 
Adjusted gross margin 18.4 % 18.6 % 16.8 % 17.5 %
 
Operating (loss) income $ (336.1 ) $ 307.2 $ (28.9 ) $ (33.1 ) $ 34.2 $ 1.1
 
Adjusted income tax provision (benefit) $ (0.4 ) $ 0.1 $ (0.3 ) $ 3.8 $ 5.0 $ 8.8
 
Adjusted (loss) income $ (340.7 ) $ 307.1 $ (33.6 ) $ (46.7 ) $ 29.2 $ (17.5 )
 
Adjusted (loss) earnings per common share - Diluted $ (9.09 ) $ (0.90 ) $ (1.24 ) $ (0.46 )
 
Adjusted weighted average shares outstanding - Diluted 37.5 37.5 37.7 37.7
 
 
*See Table Six
 

Table Six

 

IMATION CORP.
Non-GAAP Financial Measures
(In millions, except for per share amounts)
(Unaudited)
 
Operating (loss) income / Adjusted operating (loss) income
             
Three Months Ended Twelve Months Ended
December 31 December 31
2012 2011 2012 2011
Operating loss: $ (310.4 ) $ (12.1 ) $ (336.1 ) $ (33.1 )
Restructuring and other
Restructuring 15.2 5.0 19.7 11.4
Other 3.9 (0.3 ) 1.4 10.1
Goodwill impairment 23.3 - 23.3 1.6
Intangible impairment 260.5 - 260.5 -
Litigation settlement - - - 2.0
Inventory write-downs related to restructuring programs included in cost of goods sold   2.3     7.6     2.3     9.1  
Total adjustments   305.2     12.3     307.2     34.2  
Adjusted operating (loss) income - Non-GAAP $ (5.2 ) $ 0.2   $ (28.9 ) $ 1.1  
 
Effect on diluted EPS:
(Loss) income from operations $ (8.34 ) $ (0.34 ) $ (9.09 ) $ (1.24 )
Restructuring and other
Restructuring 0.40 0.13 0.52 0.31
Other 0.11 - 0.04 0.27
Goodwill impairment 0.63 - 0.62 0.04
Intangible impairment 7.00 - 6.95 -
Litigation settlement - - - 0.05
Inventory write-downs 0.06 0.20 0.06 0.24
Reversal of net operating loss carryforward valuation   -     (0.13 )   -     (0.13 )
Adjusted diluted EPS - Non-GAAP $ (0.14 ) $ (0.14 ) $ (0.90 ) $ (0.46 )
 
 
EBITDA:
Operating loss $ (310.4 ) $ (12.1 ) $ (336.1 ) $ (33.1 )
Depreciation 2.2 2.3 8.3 10.7
Amortization   5.8     7.2     27.5     26.0  
EBITDA $ (302.4 ) $ (2.6 ) $ (300.3 ) $ 3.6  
Restructuring and other 19.1 4.7 21.1 21.5
Goodwill impairment 23.3 - 23.3 1.6
Intangible impairment 260.5 - 260.5 -
Litigation settlement - - - 2.0
Inventory write-downs related to restructuring programs included in cost of goods sold   2.3     7.6     2.3     9.1  
Total adjustments   305.2     12.3     307.2     34.2  
Adjusted EBITDA $ 2.8   $ 9.7   $ 6.9   $ 37.8  
 
 

EBITDA is defined as operating income less depreciation and amortization. Adjusted EBITDA is defined as EBITDA before goodwill, restructuring and other, and inventory write-downs related to restructuring programs included in cost of goods sold.

 
The Non-GAAP financial measurements (adjusted operating income (loss), adjusted income(loss), adjusted diluted EPS, EBITDA and adjusted EBITDA) are provided to assist in understanding the impact of certain items on Imation's actual results of operations when compared with prior periods. Management believes this will assist investors in making an evaluation of Imation's performance against prior periods on a comparable basis by adjusting for these items. Management understands that there are material limitations on the use of Non-GAAP measures. Non-GAAP measures are not substitutes for GAAP measures for the purpose of analyzing financial performance. These Non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, generally accepted accounting principles and may be different from Non-GAAP measures used by other companies. In addition, these Non-GAAP measures are not based on any comprehensive set of accounting rules or principles. This information should not be construed as an alternative to the reported results, which have been determined in accordance with accounting principles generally accepted in the United States of America.

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SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
SYS-CON Events announced today that Litmus Automation will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Litmus Automation’s vision is to provide a solution for companies that are in a rush to embrace the disruptive Internet of Things technology and leverage it for real business challenges. Litmus Automation simplifies the complexity of connected devices applications with Loop, a secure and scalable cloud platform.
In 2015, 4.9 billion connected "things" will be in use. By 2020, Gartner forecasts this amount to be 25 billion, a 410 percent increase in just five years. How will businesses handle this rapid growth of data? Hadoop will continue to improve its technology to meet business demands, by enabling businesses to access/analyze data in real time, when and where they need it. Cloudera's Chief Technologist, Eli Collins, will discuss how Big Data is keeping up with today's data demands and how in the future, data and analytics will be pervasive, embedded into every workflow, application and infra...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, will provide some practical insights on what, how and why when implementing "software-defined" in the datacenter.
So I guess we’ve officially entered a new era of lean and mean. I say this with the announcement of Ubuntu Snappy Core, “designed for lightweight cloud container hosts running Docker and for smart devices,” according to Canonical. “Snappy Ubuntu Core is the smallest Ubuntu available, designed for security and efficiency in devices or on the cloud.” This first version of Snappy Ubuntu Core features secure app containment and Docker 1.6 (1.5 in main release), is available on public clouds, and for ARM and x86 devices on several IoT boards. It’s a Trend! This announcement comes just as...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements around Unified Networks, Cloud Computing strategies, Virtualization around Software defined Data Ce...
SYS-CON Events announced today the IoT Bootcamp – Jumpstart Your IoT Strategy, being held June 9–10, 2015, in conjunction with 16th Cloud Expo and Internet of @ThingsExpo at the Javits Center in New York City. This is your chance to jumpstart your IoT strategy. Combined with real-world scenarios and use cases, the IoT Bootcamp is not just based on presentations but includes hands-on demos and walkthroughs. We will introduce you to a variety of Do-It-Yourself IoT platforms including Arduino, Raspberry Pi, BeagleBone, Spark and Intel Edison. You will also get an overview of cloud technologies s...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are configurable to any form factor or custom configuration. AIC leads the industry with nearly 20 years of ...
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
The only place to be June 9-11 is Cloud Expo & @ThingsExpo 2015 East at the Javits Center in New York City. Join us there as delegates from all over the world come to listen to and engage with speakers & sponsors from the leading Cloud Computing, IoT & Big Data companies. Cloud Expo & @ThingsExpo are the leading events covering the booming market of Cloud Computing, IoT & Big Data for the enterprise. Speakers from all over the world will be hand-picked for their ability to explore the economic strategies that utility/cloud computing provides. Whether public, private, or in a hybrid form, clo...
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantronics products to connect and transit or receive the audio associated with the WebRTC session.
Internet of Things (IoT) will be a hybrid ecosystem of diverse devices and sensors collaborating with operational and enterprise systems to create the next big application. In their session at @ThingsExpo, Bramh Gupta, founder and CEO of robomq.io, and Fred Yatzeck, principal architect leading product development at robomq.io, will discuss how choosing the right middleware and integration strategy from the get-go will enable IoT solution developers to adapt and grow with the industry, while at the same time reduce Time to Market (TTM) by using plug and play capabilities offered by a robust I...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this case) takes into account the number and quality of contextual references that a user receives.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? Join this panel of experts as they peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you’ll have no problem filling in your buzzword bingo cards.
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
SYS-CON Events announced today that Creative Business Solutions will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Creative Business Solutions is the top stocking authorized HP Renew Distributor in the U.S. Based out of Long Island, NY, Creative Business Solutions offers a one-stop shop for a diverse range of products including Proliant, Blade and Industry Standard Servers, Networking, Server Options and Care Packs. As a trusted supplier, CBS guarantees quality controlled stock levels thanks to an Auto...