A leader in data storage and security since 1996, Imation is a company that has built a reputation by staying on the cutting edge of innovation and adapting to new industry trends. However, they’ve made big waves throughout the IT community as of late on account of their most recent announcement, where they disclosed their plans to discontinue all of their tape media and consumer storage operations outside of Europe.
This move could have an impact on many organizations that still rely on tape-based storage such as Imation’s LTO, RDX, Digital Linear Tape (DLT) and Super DLT solutions. Their consumer-oriented line of storage solutions, which is also affected by the recent news, includes devices such as solid-state drives, external hard drives, memory cards and other flash drives.
Imation’s interim president, Barry L. Kasoff, spoke about the move in a recent interview. He was quoted as saying: “After careful consideration, we concluded these wind downs are critical in our ongoing effort to create a leaner, more focused Imation. Our TSS (Tiered Storage and Security Solutions) segment is the foundation for the company's profitable growth over the long term.”
However, officials with Imation are quick to point out the fact that this is simply a restructuring on their part. Instead of marking the end of their business entirely, the move is expected to bolster their focus on providing greater data security, mobile-centric services and similar technologies.
Joseph De Perio, a chairman of the board with Imation, commented on the future direction of Imation by saying: “The steps we are taking today are important milestones in our efforts to reestablish Imation as a more competitive company that is well-positioned for growth and success. Exiting certain legacy businesses will improve our near-term financial performance and position the Company for profitable growth.”
According to their recent announcement, Imation has also terminated its licensing contract with TDK Corporation. This partnership facilitated the production of TDK Life on Record media for audio recording and playback as well as wireless audio devices such as headphones and speakers. As a result of the announcement, TDK will transfer nearly seven million shares of stock back to Imation before the end of the year.
Current CEO with Imation, Mark Lucas, echoed the sentiments of both Kasoff and De Perio. He is quoted as saying: “We continue to invest in our Tiered Storage and Security Solutions segment, which serves as the foundation for the Company’s profitable growth over the long-term. We are maintaining a focus on higher growth markets where we can bring our enterprise quality solutions to our small-to medium-sized business customers within key vertical markets.”
For more information on Imation, including details about their current products and solutions, career opportunities, partnerships and more, please visit their official website at www.imation.com. Interested parties can also view a comprehensive company history, a detailed corporate responsibility declaration, recent press releases and information regarding upcoming events. Alternatively, general inquiries can be directed to a live representative at 888-466-3456.
Imation to Discontinue Non-European Tape Production
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