Jan 5 (Reuters) - Computer data-storage products maker Imation Corp lowered its revenue projection and forecast an operating loss for the fourth quarter, hurt by a slowdown in spending on consumer electronics and optical media.
The company also said it will not achieve its previous earnings outlook for the quarter.
In October, it had forecast earnings of 11 cents to 23 cents a share, excluding restructuring charges.
Imation now expects revenue of $530 million to $540 million for the fourth quarter, compared with its previous outlook of $560 million to $580 million.
'Global economic conditions have impacted our business more than we expected. In addition, the industry softness we have been seeing throughout the year has continued to negatively impact our results,' CEO Frank Russomanno said.
Driven by the shortfall in revenue and margin pressures, the company said it could report a fourth-quarter operating loss of up to $7 million.
The company had earlier forecast operating income of between $7 million and $14 million for the quarter.
In a statement, Russomanno said the company is continuing cost-reduction actions, but did not give any further details.
Shares of Imation were down about 3 percent at $14 in trading after the bell. They closed at $14.41 Monday on the New York Stock Exchange.
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(Reporting by Saumyadeb Chakrabarty in Bangalore; Editing by Deepak Kannan) Keywords: IMATION/ (saumya.chakrabarty@reuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: saumya.chakrabarty.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The company also said it will not achieve its previous earnings outlook for the quarter.
In October, it had forecast earnings of 11 cents to 23 cents a share, excluding restructuring charges.
Imation now expects revenue of $530 million to $540 million for the fourth quarter, compared with its previous outlook of $560 million to $580 million.
'Global economic conditions have impacted our business more than we expected. In addition, the industry softness we have been seeing throughout the year has continued to negatively impact our results,' CEO Frank Russomanno said.
Driven by the shortfall in revenue and margin pressures, the company said it could report a fourth-quarter operating loss of up to $7 million.
The company had earlier forecast operating income of between $7 million and $14 million for the quarter.
In a statement, Russomanno said the company is continuing cost-reduction actions, but did not give any further details.
Shares of Imation were down about 3 percent at $14 in trading after the bell. They closed at $14.41 Monday on the New York Stock Exchange.
For the alerts, double-click
(Reporting by Saumyadeb Chakrabarty in Bangalore; Editing by Deepak Kannan) Keywords: IMATION/ (saumya.chakrabarty@reuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: saumya.chakrabarty.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.