Imation beats expectations, stock risesby Martin Moylan, Minnesota Public Radio
St. Paul, Minn. — Shares of Oakdale-based Imation rose 15 percent Tuesday, as the company beat Wall Street earnings and revenue expectations and outlined a turnaround strategy.
Imation makes DVDs, hard drives and other products for storing digital information.
The company posted a net loss of $138 million in the final three months of 2010, largely due to one-time tax and restructuring costs. Sales fell about 12 percent to $398 million. But Wall Street was expecting a much weaker performance.
Mark Miller, an analyst with Noble Capitol Group, said the company is starting to develop a new generation of devices.
"They are starting to see the emerging products, and that's the whole balancing act -- to try to develop new products and replace the older products, which are not as profitable," said Miller. "About 16 percent of sales were for these emerging products. And they hope to grow that with the investment in R&D."
Imation expects flat sales and declining profits this year because of investments in product development.