Memorex 2011 Annual Report Download - page 6

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property portfolio, a solid industry reputation, and strong relationships with key original equipment manufacturers (OEMs).
Some of our legacy tape formats are proprietary or semi-proprietary and have higher gross profit margins than
non-proprietary products. Our magnetic tape products are sold throughout the world under various brands.
Other traditional storage products include primarily optical drives and audio and video tape media.
Secure and Scalable Storage
Secure storage products and software include USB flash drives and external hard drives designed to meet the most
stringent security standards to protect data at rest with Federal Information Processing Standard (FIPS) validation, password
and biometric authentication, including biometric USB drives, encrypted and biometric hard disk drives, secure portable
desktop solutions, and software solutions. Flash media products with security features provide margins significantly higher
than traditional flash media without data security. These products are sold throughout the world under the Imation
Defender™, MXI Security and IronKey brands. We also sell standard USB flash drives and external hard disk drives
throughout the world under our Imation, Memorex and TDK Life on Record brands. We source these products from
manufacturers primarily in Asia and the United States and sell them through a variety of retail and commercial distribution
channels around the world. USB flash drives have capacities ranging from 1GB up to 64GB and capacities continue to
increase as new products are introduced. External hard disk drives have capacities ranging from 250 GB to 5 TB. Scalable
storage products include data protection appliances such as DataGuard network attached storage backup appliances and
InfiniVault™ active archive appliances. The Imation RDX™ removable hard disk cartridge is a high-capacity, rugged and
removable 2.5-inch hard disk drive cartridge with 160GB to 1TB capacities.
Audio and Video Information
Our audio and video information products include Apple iPad®, iPod®and iPhone®accessories, headphones, CD
players, alarm clocks, portable boom boxes, MP3 players, and speakers sold under the Memorex, TDK Life on Record and
XtremeMac brands. The portfolio continues to evolve with consumer demand and with development of our brands. We design
products to meet user needs and source these products from manufacturers throughout Asia.
The table below describes our revenue by product category:
Years Ended December 31,
2011 2010 2009
Revenue
%of
Total Revenue
%of
Total Revenue
%of
Total
(Dollars in millions)
Traditional storage
Optical products ....................... $ 511.9 39.6% $ 619.3 42.4% $ 738.0 44.8%
Magnetic products ..................... 327.4 25.4% 347.8 23.8% 406.0 24.6%
Other traditional storage ................. 47.7 3.7% 62.8 4.3% 77.7 4.7%
Total traditional storage ................ 887.0 68.7% 1,029.9 70.5% 1,221.7 74.1%
Secure and scalable storage ................ 210.1 16.3% 207.5 14.2% 165.4 10.0%
Audio and video information ................ 193.3 15.0% 223.5 15.3% 262.4 15.9%
Total ................................ $1,290.4 $1,460.9 $1,649.5
Our Brands
The Imation brand has been at the forefront of data storage and digital technology since inception. Imation brand
products include magnetic tape media, recordable CDs, DVDs and Blu-ray discs, flash products and hard disk drives. The
Imation brand includes the DataGuard Data Protection Appliances, InfiniVault™ Storage appliances and RDX®Removable
hard disk storage systems. Imation Defender products include secure storage flash drives and external hard drives. Imation
brand products are sold throughout the world and target the commercial user and individual consumer. Imation Defender
products include secure storage flash drives and external hard drives.
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