Imation issues warning on second-quarter profit

Imation issues warning on second-quarter profit

Imation late last month warned the financial community that its second-quarter net income and earnings per share are expected to be below analysts' estimates, due to weaker demand for the Oakdale, MN, company's data-storage products. Wall Street was expecting the company to post second-quarter earnings in the range of 30 to 38 a share.

Sales of Imation's lower capacity data-storage products, like its Travan minicartridges, have been slower than expected, the company said. The company's broader portfolio of products in the medical imaging, printing and publishing, photo color, and data-center markets continues to meet expectations, however. Imation executives said the company's results should improve as higher capacity data-storage products it is developing hit the market.

In other news, Imation acquired Imaginet of Minneapolis, a privately held provider of Internet services to manufacturing and service companies. Imation has formed Imation Internet Services, a new business unit that will offer Internet and intranet-based services to customers, including those in the medical imaging industry.