Memorex 2004 Annual Report Download - page 5
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CLIENTIMATION
PROJECT04ANNUALREPORT
In2004,wealsobeganalonger-term
transformationtobecomeaLean
Enterprise,withImation’smanufacturing
andsupplychainoperationsthefirstto
adoptleanprinciples.Theseprinciples
encompassallkeybusinessfunctionsand
processesandwillresultingreaterspeed,
higherqualityandcompetitivecost.The
wholeenterprisewillundergothistransfor-
mationoverthenextfewyears,asImation
becomesanevenstronger,moreflexible
andfastercompanythanitistoday.
FOCUSONBUILDING
FORTHEFUTURE
Imationhasenteredanewphaseofitslife
asacompany.Initsearlyyears,Imation
wasbusydivestingoperationsthatwere
notinthedatastoragebusiness.
ORGANIZINGFORSUCCESS
Wecontinuetoevolveasanorganization
andabusiness,anticipatingfutureoppor-
tunitiesandreactingtomarketchanges.
Recognizingthatourcoststructurewas
notrightforourfuturebusiness,wetook
severaldifficultbutnecessarysteps.First,
weannouncedplanstocloseourtape
coatingfacilityinTucsonbeforetheendof
2005.Wealsoalignedourorganizational
structuretoberegionallybasedin
theAmericas,EuropeandAsia.This
significantlyreducedcostandcorporate
bureaucracyatheadquarterswhile
unleashingtheinitiative,entrepreneurial
spiritandcreativityofoursalesand
marketingteamswhoareclosesttothe
customerandchannel.Iamveryexcited
bytheenergy,enthusiasmandsenseof
purposethatIseeinourregionalteams.
thantwodecadesofexperiencein
magneticmediatothisseniorrole,where
heleadsworldwidesalesandmarketing
operationsaswellasR&D,manufacturing,
sourcingandinformationtechnology.
WithFrankleadingoperations,Ican
focusmoreofmyenergyandattention,
aschairmanandchiefexecutiveofficer,
onstrategyandcorporatedirection.
PaulZellerwasnamedchieffinancial
officerin2004.Inthisrole,Paulbrings
morethantwentyyearsofexperienceand
leadershipinglobalfinanceandpublic
accountingaswellasdeepunderstanding
ofImation’sbusinesses.Icanassureyou
thatyourentireseniormanagementteam
isfocusedonandcommittedtocreating
shareholdervalue.
• In2002,apre-tax$7.4millionlitigationbenefitdue
chargeforalitigationissueinSpain,$5.8millionpre
chargeof$1.8million.
• In2001,pre-taxspecialchargesof$0.6milli
administrativeexpenses(SG& scolorproofingand
colorsoftwarebusiness.
• In2000,pre-taxspecialchargesof$7.5millionincostofgoodsand$2.3millioninSG&A,$24.4millioninpre-taxrestructuringcharges,a$60.8millionpre-taxchargeinSG&Afor
amortizationrelatedtocomputersoftwarethatwasabandoned,and$2.6millionpre-taxinreversalsofpreviouslyrecordedchargesduetolowerthanexpectedcostsofrestructuring.
Research & Developement Capital Expense
97
$70
28
42
98
$142
67
75
99
$231
109
122
00
$321
158
163
01
$408
206
202
02
$502
257
245
03
$633
313
320
04
$726
370
356
Cumulative Data Storage Research & Development
and Capital Expenditures (dollars in millions) (from 1997 to 2004)
Total Debt Share Repurchase Dividends
Cash & Investments
Cash, Debt and Cumulative Share Repurchase & Dividends* (dollars in millions)
9998 00 01 02 03 04
$64
$58 $0 $87 $153 $154 $164 $193 $297
$195
$28
$270
$24
$390
$13
$475
$5
$425
$0
$440
$0
184
275
9
22
Adjusted(2)
Reported
Diluted Earnings Per Share from Continuing Operations*
(reported and adjusted before cumulative effect of accounting change)
00 01 02 03 04
9998
$1.59$1.19
$2.10$2.25$1.86$2.05$1.02($0.02)$1.57($0.25)$1.00($0.46)
Revenue* (dollars in millions)
98 99 00 01 02 04
$45
$1,174
$53
$1,111
03
Data Storage Other(1)
$63
$1,004
$243
$876
$304
$867
$385
$952
$522
$714
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