Memorex 2004 Annual Report Download - page 3
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CLIENTIMATION
PROJECT04ANNUALREPORT
(lefttoright): FrankRussomanno,ExecutiveVicePresidentandChiefOperatingOfficer;BruceHenderson,ChairmanandChiefExecutiveOfficer;PaulZeller,VicePresidentandChiefFinancialOfficer
IMATION’SENDURINGCOMMITMENTTOLEADERSHIP
Sincelastspring,whenIjoinedImationasChairmanandChiefExecutive
Officer,I’vemetmanycustomers,investorsandemployeesofImation,
allcommittedtotheCompany’ssuccess.NowIamverypleasedto
presentthe2004AnnualReporttoShareholders,notjustrecountingthe
developmentsoftheyearended,butalsolookingtowardthefuture.
Thispastyearwasayearofchange—intheindustry,intechnology,
andwithinImation.TheCompanysawnewexecutiveleadership,anew
organization,competitivechallengesinourbusinessaswellassignificant
accomplishmentsinourtechnology,manufacturingcapabilities,andour
overallindustryposition.Itwasalsoayearofincreasedfocusanddecisive
action.Asweenter2005,weremaincommittedtoourstatedgoalof
leadershipinthedatastorageindustry.Thatiswhoweare.Thereportyou
haveinfrontofyoudescribeshowwearenotjustmaintaining,butalso
strengtheningourindustryleadership.
DEARFELLOWIMATIONSHAREHOLDERS:
2004—AYEAROFCHALLENGES
ANDACCOMPLISHMENTS
Wehadastrongstartandfinishtothe
year,buthadtwodifficultquartersin
mid-year.Pricinginopticalproductsfell
muchfurtherandfasterthantheindustry
hadanticipatedanddemandinthedata
centertemporarilyslowedinthefaceof
economicuncertainty.Asaresult,we
missedourrevenueandprofitobjectives
for2004.Wedidnotwaitinexpectation
thatthingswouldsomehowgetbetter.
Instead,wetookaggressiveactiontoalign
ourcostandorganizationalstructureto
themarketrealitieswefacegoingforward.
Atyear-endwesawpositivemomentum
returningtoourcoretapeproducts,
improvementinopticalprofitabilityand
nearrecordcashgenerationinthefourth
quarter.Ibelievethattheaggressive
actionswetooktoreducecostsand
addressourbusinesschallengesposition
usforimprovementinoverallprofitability
in2005.
ENDURINGCOMMITMENTTOLEADERSHIP : 1