OAKDALE, Minn., Nov. 12 /PRNewswire-FirstCall/ -- Imation Corp. filed with the Securities and Exchange Commission its quarterly report on Form 10-Q for the quarter ended September 30, 2007. Operating income for the quarter was $16.3 million, which was $3.8 million higher than the results the company reported on October 25th. Diluted earnings per share also increased by $0.06 to $0.24. The changes resulted from reversal of a charge incurred in Q2 2007 related to a terminated employment agreement covering anticipated stock based compensation and medical costs for the company's former Chairman and CEO, who had been on long term disability. The former executive passed away on November 5th prior to the filing of the Form 10-Q, which necessitated adjustment to previously reported results. 2007 Business Outlook The adjustments in the third quarter results noted above increased the Company's full year outlook for operating income and earnings per share, but did not change the fourth quarter outlook previously communicated. The following statements are based on our current outlook for Q4 and fiscal 2007 and include the anticipated impact from integration of the recently acquired TDK Recording Media and Memcorp businesses. The 2007 outlook is subject to change based on the final allocation of intangible assets associated with the acquired businesses, and is subject to the risks and uncertainties described below. Where noted below, the outlook has changed from the outlook issued October 25, 2007. -- Revenue for 2007 is targeted between $2.00 billion and $2.05 billion, representing growth of approximately 25 percent to 30 percent over 2006. As a result, revenue in Q4 would range between $640 million and $690 million. -- Full year 2007 operating income on a GAAP basis is targeted between $55 million and $60 million including restructuring and other charges of approximately $26 million. This outlook is changed from the previous outlook of operating income between $51 million and $55 million which included restructuring and other charges of approximately $30 million. On a non-GAAP basis, excluding restructuring and other charges, operating income for the year is targeted between $85 million and $90 million, up from the previous outlook of $81 million to $86 million on a comparable basis. GAAP operating income for the fourth quarter is estimated between $17.5 million and $22.5 million, including restructuring charges of approximately $5.5 million. -- Diluted earnings per share on a GAAP basis for full year 2007 is targeted between $0.92 and $1.02, which includes the negative impact of $0.45 from restructuring and other charges. This is changed from the previous outlook of diluted earnings per share of between $0.86 and $0.96 which included the negative impact of $0.51 from restructuring and other charges. On a non-GAAP basis excluding the impact of restructuring and other charges, diluted earnings per share for the full year is targeted between $1.37 to $1.47. Diluted earnings per share on a GAAP basis for Q4 is targeted between $0.28 and $0.38, which includes the negative impact of approximately $0.09 from restructuring and other charges. -- Capital spending for 2007 is targeted to be approximately $15 million to $18 million. -- The tax rate for 2007 is anticipated in a range of 37 percent to 38 percent. -- Depreciation and amortization expense for 2007 is targeted between $45 million and $47 million. About Imation Corp. Imation Corp. is the only company in the world focused on the development, manufacture and supply of removable data storage products spanning the four pillars of magnetic, optical, flash and removable hard disk storage. With more than 50 years of data storage leadership beginning with the development of the world's first computer tape, Imation proudly marked its tenth anniversary as an independent company in 2006. In addition to the Imation brand, Imation Corp.'s global brand portfolio includes the Memorex brand, one of the most widely recognized names in the consumer electronics industry, famous for the slogan, "Is it live or is it Memorex?" Imation is also the exclusive licensee of the TDK Life on Record brand, one of the world's leading recording media brands. Additional information about Imation is available at http://www.imation.com/ or by calling 1-888-466-3456. Risk and Uncertainties Certain information contained in this press release which does not relate to historical financial information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause our actual results in the future to differ materially from our historical results and those presently anticipated or projected. We wish to caution investors not to place undue reliance on any such forward-looking statements. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. Risk factors include our ability to successfully integrate the acquisitions of the TDK Recording Media business and the Memcorp business and achieve the anticipated benefits, including synergies, in a timely manner; our ability to operate the Memorex business as an integrated entity; our ability to successfully defend our intellectual property, including the Memorex brand and patent licenses and the Philips patent cross license; continuing uncertainty in global economic conditions that make it particularly difficult to predict product demand; the volatility of the markets in which we operate; our ability to meet our cost reduction and revenue growth targets; our ability to successfully implement our global manufacturing strategy for magnetic data storage products and changes to our R&D organization and to realize the benefits expected from the related restructuring charges; our ability to introduce new offerings in a timely manner either independently or in association with OEMs or other third parties; our ability to achieve the expected benefits from the Moser Baer and other strategic relationships and distribution agreements such as the GDM joint venture and Tandberg relationships; the competitive pricing environment and its possible impact on profitability and inventory valuations; foreign currency fluctuations; the outcome of any pending or future litigation; our ability to secure adequate supply of certain high demand products at acceptable prices; the ready availability and price of energy; availability of key raw materials or critical components; the market acceptance of newly introduced product and service offerings; the rate of decline for certain existing products, as well as various factors set forth from time to time in our filings with the Securities and Exchange Commission. DATASOURCE: Imation Corp. CONTACT: Brad Allen of Imation Corp., +1-651-704-5818, Web site: http://www.imation.com/

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