Memorex 2010 Annual Report Download - page 5

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PART I
Item 1. Business.
General
Imation Corp., a Delaware corporation, is a leading global technology company dedicated to helping people and
organizations store, protect and connect their digital world. Our portfolio of data storage and security products, electronics
and accessories reaches customers in more than 100 countries through a powerful global distribution network. As used
herein, the terms “Imation,” “Company,” ‘‘we,” “us,” or “our” mean Imation Corp. and its subsidiaries unless the context
indicates otherwise.
In July 1996, Imation was established as a spin-off of the businesses which comprised substantially all of the data
storage and imaging systems groups of 3M Company. We subsequently divested all of the non-data storage businesses
acquired from 3M Company in connection with the spin-off. These divestitures allowed us to focus on data storage media,
primarily as a manufacturer of magnetic tape products under the Imation brand, sold to commercial end users through
multiple distribution channels. We then expanded our business into other removable data storage media such as optical
media, flash and solid state drives, and removable and external hard disk drives. In 2006, we acquired substantially all of
the assets of Memorex International Inc. (Memorex), followed by the acquisition of the TDK Recording Media business
(TDK Life on Record) in 2007. In 2007, we also acquired certain assets of Memcorp, Inc. and Memcorp Asia Limited
(together Memcorp) used in or relating to the sourcing and sale of consumer electronic products, principally under the
Memorex brand name. This acquisition established our foundation in audio and video consumer electronic products. In
2008, we expanded our presence in consumer electronic products with the Xtreme Accessories, LLC (XtremeMac)
acquisition, a maker of accessories for Apple consumer electronics products.
Our global brand portfolio includes the Imation brand, the Memorex brand, one of the most widely recognized names
in the consumer electronics industry and famous for the slogan, “Is it live or is it Memorex?” and the XtremeMac brand.
Imation is also the exclusive licensee of the TDK Life on Record brand, one of the world’s leading recording media brands.
Our Products
We have three major product categories: traditional storage, emerging storage, and electronics and accessories.
Traditional Storage
Traditional storage products include optical media products, magnetic tape media products and other traditional
storage media products.
Our optical media products consist of CDs, DVDs and Blu-ray recordable media. We have the leading global market
share for recordable optical media. While the overall market for CDs and DVDs is declining as streaming digital, hard disk
and flash media replace optical media in some applications such as music and video recording, we have increased our
market share through acquisitions and by execution of our optical brand consolidation strategy. We sell high capacity Blu-
ray discs which are used primarily for recording high-definition video content. Our recordable optical media products are
sold through a variety of retail and commercial distribution channels and sourced from manufacturers primarily in Taiwan
and India. Optical storage capacities range from 650 megabyte CD-R (recordable) and CD-RW (rewritable) optical discs to
9.4 gigabyte (GB) double-sided DVD optical discs and Blu-ray discs with 25GB to 100GB of capacity. Our optical media is
sold throughout the world under brands we own or control, including Imation, Memorex and TDK Life on Record, and
under a distribution agreement for the Hewlett Packard brand.
Our magnetic tape media products are used for back-up, business and operational continuity planning, disaster
recovery, near-line data storage and retrieval and for cost-effective mass and archival storage. Major application areas for
magnetic tape products include enterprise data centers, network servers, and small to medium sized businesses. Native
capacity of our tape products range from less than 10GB up to 1.6 terabytes (TB) per cartridge. We enjoy a leading
market share, a significant intellectual property portfolio, a solid industry reputation, and strong relationships with key
original equipment manufacturers (OEMs). Many of our legacy tape formats are proprietary or semi-proprietary and have
higher gross profit margins than our other products. Our magnetic tape products are sold throughout the world under
various brands. We also have agreements under which we distribute certain products under other brands, including IBM
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