Feeds

Hey, what's inside those Imation Nexsan arrays? Whoa, bundles of cash?

Same old, same old, though – revenues down and a loss

Beginner's guide to SSL certificates

The pace of revenue decline at storage biz Imation is lessening – but the loss-making continues: its second quarter results show storage media revenue falls outweighing storage array and security product revenue rises.

Net revenue for the quarter, ending June 30, was $178.6m, down 15.6 per cent from a year ago but flat compared to the first 2014 quarter. The net net income number was a loss of $21.4m; it was negative $5.1m a year ago and negative $17.5m in the first quarter of 2014.

Imation CEO Mark Lucas said: "We are encouraged by the progress we saw in the second quarter of 2014. Overall, our total revenue decline rate moderated, and we again showed continued improvement in Imation’s expense levels. We still have a lot of work in front of us, but our growth businesses are gaining momentum, and market share in our legacy businesses remains stable.”

Same old, same old; the growth businesses, like Nexsan storage arrays, are not growing fast enough to offset the continuing overall decline in legacy media products, like optical disks.

Imation_Q2cy2014

Click to show a larger quarterly revenues and net income chart

TSS (Tiered Storage and Security Solutions) is the growth business and CSA (Consumer Storage and Accessories) is the, presumably, non-growth business.

TSS revenue decreased 11.9 per cent compared to a year ago. However the Nexsan arrays and IronKey security product portfolios saw sequential revenue increases over the first quarter, which is encouraging, with revenue for Imation’s Storage Solutions and Mobile Security totaling $29.5m, up from $27.5m in the first quarter.

In the Nexsan array product line Imation expanded the number of channel partners by 25 per cent, "and focused product development on the hybrid storage market, which is a high-growth sector within data storage.” We cam't see any dramatic gains here; more a continuation of steady progress.

In the audio and accessories area, second quarter revenue grew 10.4 per cent from a year ago and also grew sequentially. But its consumer storage media revenue dropped 21.2 per cent year on year.

Overall in the CSA segment, revenue decreased 18.6 per cent compared to a year ago, due primarily to the expected declines in optical media products, partially offset by growth in audio and accessories.

Lucas said CSA is focused on introducing higher-margin products, like TDK TREK wireless speakers: "Revenue in our Audio and Accessories category grew 10 per cent over last year, with the TREK product line making strong contributions.”

In the second half of 2014 Lucas expects to see sequential revenue gains in the Nexsan and IronKey product lines as well as in audio and accessories: "Although we anticipate decreases in Imation’s legacy tape and optical businesses, we are managing them well and they are solid cash generators.” ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
IT crisis looming: 'What if AWS goes pop, runs out of cash?'
Public IaaS... something's gotta give - and it may be AWS
Linux? Bah! Red Hat has its eye on the CLOUD – and it wants to own it
CEO says it will be 'undisputed leader' in enterprise cloud tech
BT claims almost-gigabit connections over COPPER WIRE
Just need to bring the fibre box within 19m ...
Oracle SHELLSHOCKER - data titan lists unpatchables
Database kingpin lists 32 products that can't be patched (yet) as GNU fixes second vuln
Ello? ello? ello?: Facebook challenger in DDoS KNOCKOUT
Gets back up again after half an hour though
Hey, what's a STORAGE company doing working on Internet-of-Cars?
Boo - it's not a terabyte car, it's just predictive maintenance and that
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.