Memorex 2013 Annual Report Download - page 7

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USB flash drives and external hard drives. These drives are designed to meet the most stringent security standards that
protect data at rest with the U.S. Government Federal Information Processing Standard (FIPS) validation, which includes
strong encryption protection with password and biometric authentication. Flash media products with security features provide
margins significantly higher than traditional flash media without data security. We consolidated the brands for these products
under the IronKey name.
Commercial Storage Media
Our magnetic tape media products are used for business and operational continuity planning, disaster recovery, data
back-up, near-line data storage and retrieval and for cost-effective mass and archival storage. Capacity of our tape products
ranges from less than 10 GB up to 6.25 TB per cartridge. The market for magnetic tape products has been in decline, but we
continue to enjoy a leading market share in this core data storage market. We have a significant portfolio of intellectual
property, 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. Our portfolio also includes Imation RDX®
removable hard disk drives, which are high-capacity, rugged and removable 2.5-inch hard disk drive cartridges with 320
gigabyte (GB) to 1.5 terabyte (TB) capacities. Our storage appliances incorporate RDX technology and we provide RDX
removable hard disk drives, single dock systems and multi-bay RDX storage libraries.
Our Brands
The Imation brand has been at the forefront of data storage and digital technology for many years. Imation brand
products include magnetic tape media, recordable CDs, DVDs and Blu-ray discs, flash products and hard disk drives. The
Imation brand includes RDX Removable hard disk storage systems. Imation brand products are sold throughout the world and
target the commercial user and individual consumer.
The Memorex brand was acquired by Imation in 2006. Memorex branded products include recordable CDs, DVDs and
Blu-ray discs, optical drives and optical storage accessories. Memorex brand products are sold primarily in North America.
We previously sold consumer electronics products under the Memorex brand until October 15, 2013 when we divested our
Memorex consumer electronics business.
The rights to the TDK Life on Record brand were acquired by Imation in 2007 under an exclusive long-term license from
TDK Corporation (TDK). TDK Life on Record brand products include recordable CDs, DVDs and Blu-ray discs, flash drives,
tape cartridges, headphones and speakers which are sold to commercial customers and individual consumers. TDK Life on
Record brand products are sold throughout the world.
The IronKey brand was purchased in 2012 for its secure storage management software and service, as well as the
IronKey brand for secure storage products. In 2012, we consolidated our mobile security portfolio around the IronKey brand.
IronKey products include hardware encrypted USB drives, PC on a Stick™ IronKey Workspaces for Microsoft®Windows To
Go®and cloud-based or on-premise centralized secure device management solutions. These products are sold through
security-focused value-added resellers (VARs) around the world.
The Nexsan brand was acquired by Imation in 2012. Nexsan brand products include E-Series disk arrays, NST line of
hybrid storage and Assureon secure archive systems. Nexsan storage solutions are ideal for a broad range of applications
including Virtual Machine storage, cloud storage, database, surveillance, bulk storage, backup and recovery, disaster
recovery and archive. The Nexsan products are sold to small and medium-size enterprise customers across a range of
vertical markets exclusively through our worldwide network VARs.
Business Segments
In the first quarter of 2013, we revised our segment reporting to reflect changes in how we manage our business, review
operating performance and allocate resources. We now manage our business through two reporting segments, Consumer
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