Feeds

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

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

Top 5 reasons to deploy VMware with Tegile

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
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
729 teraflops, 71,000-core Super cost just US$5,500 to build
Cloud doubters, this isn't going to be your best day
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
SAVE ME, NASA system builder, from my DEAD WORKSTATION
Anal-retentive hardware nerd in paws-on workstation crisis
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.