Imation Turns To Profit In Q4 - Quick Facts

(RTTNews) - Imation Corp. (IMN) said that its fourth quarter of 2013 net income was $16.7 million, compared to a net loss of $310.2 million in year ago quarter. Net income for the quarter was $0.41 compared to a net loss of $8.34 in the same quarter last year.

Income from continuing operations for the quarter was $19.2 million versus a loss of $302.3 million in the year ago quarter. The quarterly results were favorably impacted by $9.5 million of net benefit from special items, primarily a $9.8 million gain on the sale of land at a previously closed facility for which the Company received proceeds of about $10.0 million. In addition, the fourth-quarter operating results benefited from an accrual reversal of $9.5 million associated with European copyright levies as a result of a favorable court ruling in France.

Earnings per share from continuing operations was $0.47 compared with a loss per share of $8.13 last year.

Excluding the impact of special items, adjusted earnings per share would have been $0.25 in the recent quarter, compared with a loss per share of $0.16 in the prior year quarter.

Quarterly net revenue was $232.8 million, down 12.7 percent from $266.8 million last year.

Analysts polled by Thomson Reuters expected the company to report earnings of $ per share and revenues of $ million. Analysts' estimates typically exclude special items.

In the company's third quarter 2013 release, Imation announced it had signed a letter of intent to sell its XtremeMac consumer electronics business. On January 31, 2014, Imation completed the sale of this business as part of the effort to divest lower margin, non-core businesses.

Imation's CEO Mark Lucas said,"Our consumer business continues to evolve as the optical market progresses through its life cycle with corresponding revenue declines. Our TDK Life on Record audio and accessories business enjoyed strong year over year revenue increases, and we have many new consumer storage products on our roadmap for 2014. While we do not expect CSA to return to revenue growth in the near term, it is expected to continue to be an important contributor of earnings and cash flow to the Company."