Imation Reports Fourth Quarter and Full Year 2012 Results and Additional Steps in Transformation to a Secure and Scalable Storage Company

OAKDALE, Minn.--(BUSINESS WIRE)--February 13, 2013--Imation Corp. (NYSE:IMN), a global scalable storage and data security company, today released financial results for its 2012 fourth quarter and fiscal year ended December 31, 2012. The Company also provided an update on its continued strategic transformation.

CEO Mark Lucas said, “Imation’s opportunity for higher margin, differentiated products is in our Secure and Scalable Storage portfolio which grew 16.7 percent in the fourth quarter and rose to 21 percent of total revenues, up from 15.7 percent a year earlier. With our recently announced purchase of Nexsan, we expect to derive more revenue from this category in the future. As anticipated, our audio and video information category declined 23.6 percent and will drop further given the divestitures we are announcing today. We have discussed previously that our traditional storage business is in secular decline; therefore, we are acting with urgency to reduce our cost structure and transform Imation into a company focused on high growth markets in data storage and data security.”

Imation reported Q4 2012 net revenue of $299.1 million, down 12.6 percent from Q4 2011. Special charges were $305.2 million, creating an operating loss of $310.4 million, and a diluted loss per share of $8.34. Special charges included intangible asset impairments of $260.5 million, goodwill impairment of $23.3 million and other charges of $21.4 million. Excluding special charges, Q4 2012 operating loss would have been $5.2 million and diluted loss per share would have been $0.14.

For the full year 2012, revenue was $1.1 billion, down 14.8 percent from 2011, and the operating loss was $336.1 million, or $9.09 per diluted share. Special charges for the full year were $307.2 million and excluding these special charges, 2012 operating loss would have been $28.9 million, and diluted loss per share would have been $0.90. EBITDA for the year totaled $6.9 million and for the fourth quarter was $2.8 million (See Tables Five and Six for non-GAAP measures).

Imation is currently in the midst of a strategic transformation to build a long-term platform for growth, increased margins and improved profitability. The Company is accelerating this transformation through a number of actions including the following:

“We are committed to transforming the Company and building a sustainable platform for growth, increased margins and long-term shareholder value. Combined, the acquisition of Nexsan, divestiture of certain consumer businesses, improvements in cost structure, and a more efficient business unit model truly represent an acceleration of our transformation strategy. In 2013, we are building on these actions and moving as swiftly as we can to become a major player in data storage and security on a global basis,” Lucas concluded.

Net revenue for Q4 2012 was $299.1 million, down 12.6 percent from Q4 2011. From a regional perspective, Americas revenue decreased 22.2 percent driven by optical and consumer electronics revenue reductions; Europe revenue decreased 7.7 percent; North Asia revenue increased 0.6 percent and South Asia revenue decreased 3.8 percent.

Gross margin for Q4 2012 was 16.1 percent, up from 15.0 percent in Q4 2011. Gross margin was 16.9 percent excluding inventory write offs of $2.3 million, which were part of the Company’s restructuring program, compared to 17.2 percent on the same basis in 2011.

Selling, general and administrative (SG&A) expenses for Q4 2012 were $50.5 million, down $2.4 million compared with Q4 2011 expenses of $52.9 million.

Research and development (R&D) expenses for Q4 2012 were $5.1 million, down $0.9 million compared with Q4 2011 expenses of $6.0 million.

Special charges were $305.2 million in Q4 2012 consisting of intangible asset impairments of $260.5 million, goodwill impairment of $23.3 million and $21.4 million of restructuring and other charges. The intangible asset charges, which related primarily to the Memorex International Inc. acquisition in 2006 and TDK Recording Media acquisition in 2007, were driven mainly by an accelerated optical market secular decline. Special charges were $12.3 million in Q4 2011 (See Tables Five and Six for non-GAAP measures).

Operating loss was $310.4 million in Q4 2012 compared with an operating loss of $12.1 million in Q4 2011. Excluding the impact of special charges described above, adjusted operating loss would have been $5.2 million in Q4 2012 compared with adjusted operating income on the same basis of $0.2 million in Q4 2011.

Income tax benefit was $1.0 million in Q4 2012 compared with income tax benefit of $0.7 million in Q4 2011. The Company maintains a valuation allowance related to its U.S. deferred tax assets and, therefore, no tax provision or benefit was recorded related to its 2012 U.S. results.

Loss per diluted share was $8.34 in Q4 2012 compared with $0.34 in Q4 2011. Excluding the impact of special charges described above, adjusted loss per diluted share would have been $0.14 in Q4 2012 compared with $0.14 in Q4 2011.

Cash and cash equivalents balance was $108.7 million as of December 31, 2012, down $77.6 million during the quarter, driven primarily by the payment of $104.6 million in cash for the Nexsan acquisition, offset by short-term borrowings of $20.0 million and net cash provided by operations of $14.1 million.

A teleconference is scheduled for 9:00 AM Central Time today, February 13, 2013, and will be available on the Internet on a listen-only basis at www.ir.Imation.com or www.streetevents.com. The Company's quarterly financial results will be discussed.

A taped replay of the teleconference will be available beginning at 12:30 p.m. Central time today, February 13, 2013, until 11:00 p.m. Central time February 20, 2013 by dialing 855-859-2056 (Conference ID #64544023). All remarks made during the teleconference will be current at the time of the call and the replay will not be updated to reflect any subsequent developments.

The Non-GAAP financial measurements (including adjusted operating income (loss), adjusted income (loss) per diluted share, adjusted gross margin and EBITDA) are provided to assist in understanding the impact of certain items on Imation's actual results of operations when compared with prior periods (see Tables Five and Six). Management believes this will assist investors in making an evaluation of Imation's performance against prior periods on a comparable basis by adjusting for these items. Management understands that there are material limitations on the use of Non-GAAP measures. Non-GAAP measures are not substitutes for GAAP measures for the purpose of analyzing financial performance. These Non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, generally accepted accounting principles and may be different from Non-GAAP measures used by other companies. In addition, these Non-GAAP measures are not based on any comprehensive set of accounting rules or principles. This information should not be construed as an alternative to the reported results, which have been determined in accordance with accounting principles generally accepted in the United States of America.

The financial statements released today reflect the impacts associated with the purchase price allocation from the acquisition of Nexsan Corporation as well as impairment charges related to intangible assets and goodwill from prior acquisitions. These items are subject to change pending finalization of the required valuations. We expect all applicable information to be finalized prior to the filing of the Imation Form 10-K in March.

Imation (NYSE: IMN) is a global scalable storage and data security company. Imation reaches customers in more than 100 countries through a powerful global distribution network and well recognized brands. Additional information about Imation is available at www.imation.com.

Certain information contained in this press release which does not relate to historical information may be deemed to constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause our actual results in the future to differ materially from our historical results and those presently anticipated or projected. We wish to caution investors not to place undue reliance on any such forward-looking statements. Any forward-looking statements speak only as of the date on which such statements are made, and we undertake no obligation to update such statements to reflect events or circumstances arising after such date. Risk factors include our ability to successfully implement our strategy; our ability to grow our business in new products with profitable margins and the rate of revenue decline for certain existing products; the ability of our data security products to withstand cyber-attacks; the ability to quickly develop, source, introduce and deliver differentiating and innovative products; our potential dependence on third parties for new product introductions or technologies in order to introduce our own new products; the ready availability and price of energy and key raw materials or critical components including due to the effects of natural disasters and our ability to pass along raw materials price increases to our customers; continuing uncertainty in global and regional economic conditions including adverse effects of the ongoing sovereign debt crisis in Europe, increased Euro currency exchange rate volatility, and related austerity measures and their potential impact on European economic growth; our ability to identify, value, integrate and realize the expected benefits from any acquisition which has occurred or may occur in connection with our strategy; the possibility that our goodwill or any goodwill that we acquire may become impaired; the seasonality and volatility of the markets in which we operate; foreign currency fluctuations; changes in European law or practice related to the imposition or collectability of optical levies; significant changes in discount rates and other assumptions used in the valuation of our pension plans; the possibility that our intangible assets may become impaired; acquisition related contingent consideration, which is recorded at fair value and revalued each period, differs from the obligation recorded during the previous period resulting in income or expense being recorded on the consolidated statements of operations; changes in tax laws, regulations and results of inspections by various tax authorities; our ability to successfully defend our intellectual property rights and the ability or willingness of our suppliers to provide adequate protection against third party intellectual property or product liability claims; the outcome of any pending or future litigation; failure to adequately protect our information systems from cyber-attacks; our ability to meet our revenue growth, gross margin and earnings targets and the volatility of our stock price due to our results or market trends, as well as various factors set forth from time to time in our filings with the Securities and Exchange Commission.

Table One

IMATION CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except for per share amounts)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31						December 31
	2012			2011			2012			2011
Net revenue	$	299.1		$	342.3		$	1,099.6		$	1,290.4
Cost of goods sold		251.0			290.8			897.3			1,073.7
Gross profit		48.1			51.5			202.3			216.7

Operating expense:
Selling, general and administrative		50.5			52.9			210.7			203.7
Research and development		5.1			6.0			22.8			21.0
Goodwill impairment		23.3			-			23.3			1.6
Intangible impairment		260.5			-			260.5			-
Litigation settlement		-			-			-			2.0
Restructuring and other		19.1			4.7			21.1			21.5
Total		358.5			63.6			538.4			249.8

Operating loss		(310.4	)		(12.1	)		(336.1	)		(33.1	)

Other expense (income):
Interest income		(0.1	)		(0.2	)		(0.5	)		(0.9	)
Interest expense		0.5			1.0			2.9			3.7
Other, net		0.4			0.7			2.6			7.0
Total		0.8			1.5			5.0			9.8

Loss before income taxes		(311.2	)		(13.6	)		(341.1	)		(42.9	)

Income tax (benefit) provision		(1.0	)		(0.7	)		(0.4	)		3.8

Net loss	$	(310.2	)	$	(12.9	)	$	(340.7	)	$	(46.7	)

(Loss) earnings per common share
Basic	$	(8.34	)	$	(0.34	)	$	(9.09	)	$	(1.24	)
Diluted		(8.34	)		(0.34	)		(9.09	)		(1.24	)

Weighted average shares outstanding
Basic		37.2			37.4			37.5			37.7
Diluted		37.2			37.4			37.5			37.7


*These Financial Statements and information presented in the following tables reflect the impacts associated with the purchase price allocation from the acquisition of Nexsan Corporation as well as impairment charges related to intangible assets and goodwill from prior acquisitions. These items are subject to change pending finalization of the required valuations. We expect all applicable information to be finalized prior to the filing of the Imation Form 10-K in March.

Table Two

IMATION CORP.
CONSOLIDATED BALANCE SHEETS *
(In millions)
(Unaudited)

	December 31,		December 31,
	2012		2011
ASSETS
Current assets
Cash and cash equivalents	$	108.7	$	223.1
Accounts receivable, net		220.8		234.9
Inventories		166.0		208.8
Other current assets		61.4		49.7

Total current assets		556.9		716.5

Property, plant and equipment, net		58.9		55.4
Intangible assets, net		81.9		321.7
Goodwill		73.5		31.3
Other assets		21.1		24.4

Total assets	$	792.3	$	1,149.3

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable	$	162.7	$	205.2
Other current liabilities		157.8		151.2
Short-term debt		20.0		-

Total current liabilities		340.5		356.4

Other liabilities		51.4		69.2

Total liabilities		391.9		425.6
Commitments and contingencies
Shareholders' equity		400.4		723.7

Total liabilities and shareholders' equity	$	792.3	$	1,149.3


*These Financial Statements and information presented in the following tables reflect the impacts associated with the purchase price allocation from the acquisition of Nexsan Corporation as well as impairment charges related to intangible assets and goodwill from prior acquisitions. These items are subject to change pending finalization of the required valuations. We expect all applicable information to be finalized prior to the filing of the Imation Form 10-K in March.

Table Three

IMATION CORP.
SUPPLEMENTAL SEGMENT AND PRODUCT INFORMATION
(Dollars in millions)
(Unaudited)

	Three months ended December 31,						Three months ended December 31,
	2012						2011						% Change
	Revenue				% Total		Revenue				% Total
Americas	$	131.1			43.8	%	$	168.6			49.3	%	-22.2	%
Europe		59.8			20.0	%		64.8			18.9	%	-7.7	%
North Asia		78.1			26.1	%		77.6			22.7	%	0.6	%
South Asia		30.1			10.1	%		31.3			9.1	%	-3.8	%
Total	$	299.1			100.0	%	$	342.3			100.0	%

	Revenue				% Total		Revenue				% Total
Traditional storage
Optical products	$	109.0			36.5	%	$	128.1			37.4	%	-14.9	%
Magnetic products		71.2			23.8	%		82.7			24.2	%	-13.9	%
Other traditional storage		3.7			1.2	%		9.1			2.7	%	-59.3	%
Total traditional storage		183.9			61.5	%		219.9			64.3	%	-16.4	%
Secure and scalable storage		62.8			21.0	%		53.8			15.7	%	16.7	%
Audio and video information		52.4			17.5	%		68.6			20.0	%	-23.6	%
Total	$	299.1			100.0	%	$	342.3			100.0	%


	Operating Income (Loss)				OI %		Operating Income (Loss)				OI %
Americas	$	(0.1	)		-0.1	%	$	6.1			3.6	%	-101.6	%
Europe		1.9			3.2	%		2.5			3.9	%	-24.0	%
North Asia		3.1			4.0	%		3.4			4.4	%	-8.8	%
South Asia		(0.2	)		-0.7	%		1.7			5.4	%	-111.8	%
Corp/Unallocated (1)		(315.1	)		NM			(25.8	)		NM		NM
Total	$	(310.4	)		-103.8	%	$	(12.1	)		-3.5	%

	Gross Margin						Gross Margin

Traditional storage		17.8		%				19.1		%
Secure and scalable storage		14.6						18.0
Audio and video information		16.0						10.8
		16.9						17.2
Inventory write-offs related to restructuring programs		(0.8	)					(2.2	)
Total		16.1		%				15.0		%

	Twelve months ended December 31,						Twelve months ended December 31,
	2012						2011						% Change
	Revenue				% Total		Revenue				% Total
Americas	$	504.7			45.9	%	$	595.9			46.2	%	-15.3	%
Europe		208.8			19.0	%		248.0			19.2	%	-15.8	%
North Asia		272.5			24.8	%		307.2			23.8	%	-11.3	%
South Asia		113.6			10.3	%		139.3			10.8	%	-18.4	%
Total	$	1,099.6			100.0	%	$	1,290.4			100.0	%


	Revenue				% Total		Revenue				% Total
Traditional storage
Optical products	$	426.8			38.8	%	$	511.9			39.7	%	-16.6	%
Magnetic products		286.2			26.0	%		327.4			25.3	%	-12.6	%
Other traditional storage		15.4			1.4	%		47.7			3.7	%	-67.7	%
Total traditional storage		728.4			66.2	%		887.0			68.7	%	-17.9	%
Secure and scalable storage		210.1			19.1	%		210.1			16.3	%	0.0	%
Audio and video information		161.1			14.7	%		193.3			15.0	%	-16.7	%
Total	$	1,099.6			100.0	%	$	1,290.4			100.0	%


	Operating Income (Loss)				OI %		Operating Income (Loss)				OI %
Americas	$	2.9			0.6	%	$	8.4			1.4	%	-65.5	%
Europe		(3.9	)		-1.9	%		10.3			4.2	%	-137.9	%
North Asia		5.9			2.2	%		12.5			4.1	%	-52.8	%
South Asia		0.6			0.5	%		4.0			2.9	%	-85.0	%
Corp/Unallocated (1)		(341.6	)		NM			(68.3	)		NM		NM
Total	$	(336.1	)		-30.6	%	$	(33.1	)		-2.6	%

	Gross Margin						Gross Margin

Traditional storage		19.0		%				19.0		%
Secure and scalable storage		18.8						15.1
Audio and video information		16.4						13.0
		18.6						17.5
Inventory write-offs related to restructuring programs		(0.2	)					(0.7	)
Total		18.4		%				16.8		%


NM - Not Meaningful
(1) Corporate and unallocated amounts include inventory write-offs related to restructuring programs, goodwill impairment, intangible impairment, intangible accelerated amortization, research and development expense, corporate expense, stock-based compensation expense, and restructuring and other charges that are not allocated to the regional markets we serve. We believe this avoids distorting the operating income for the regional segments.

	Table Four

	IMATION CORP.
	OPERATIONS, CASH FLOW AND ADDITIONAL INFORMATION
	(Dollars in millions)
	(Unaudited)


		Three Months Ended						Twelve Months Ended
	(Dollars in millions)	December 31						December 31
		2012			2011			2012			2011
	Operations
	Gross Profit	$	48.1		$	51.5		$	202.3		$		216.7
	Gross Margin %		16.1	%		15.0	%		18.4	%			16.8	%
	Operating (Loss) Income	$	(310.4	)	$	(12.1	)	$	(336.1	)	$		(33.1	)
	Operating (Loss) Income %		-103.8	%		-3.5	%		-30.6	%			-2.6	%

	Cash Flow
	Net cash (used in) provided by operating activities	$	14.1		$	15.3		$	(8.5	)	$		(16.3	)
	Net cash (used in) provided by investing activities	$	(109.6	)	$	(22.2	)	$	(115.7	)	$		(54.3	)
	Net cash (used in) provided by financing activities	$	18.4		$	-		$	9.9		$		(9.1	)
	Cash and cash equivalents - end of period	$	108.7		$	223.1		$	108.7		$		223.1

	Capital Spending	$	1.8		$	1.2		$	10.2		$		7.3
	Depreciation	$	2.2		$	2.3		$	8.3		$		10.7
	Amortization	$	5.8		$	7.2		$	27.5		$		26.0

	NM - Not Meaningful

	Asset Utilization Information *
								December 31			December 31
								2012			2011

	Days Sales Outstanding (DSO)								59				58
	Days of Inventory Supply								89				85
	Debt to Total Capital								4.8	%			0.0	%

	Other Information

**	Approximate employee count as of December 31, 2012:												1,230
	Approximate employee count as of December 31, 2011:												1,130
	Book value per share as of December 31, 2012:											$	9.94
	Shares used to calculate book value per share (millions):												40.3
	Imation repurchased approximately 396,0000 shares of its stock during the quarter for $1.7 million.
	Authorization for repurchase of approximately 3.8 million shares remains outstanding based on the latest Board authorization.

*	These operational measures, which we regularly use, are provided to assist in the investor's further understanding of our operations.

**	Includes approximately 200 employees of Nexsan Corporation which was acquired on December 31, 2012.

	Days Sales Outstanding is calculated using the count-back method, which calculates the number of days of most recent revenue that are reflected in the net accounts receivable balance.

	Days of Inventory Supply is calculated using the current period inventory balance divided by an estimate of the inventoriable portion of cost of goods sold expressed in days. December 31, 2012 amount excludes Nexsan Corporation.

	Debt to Total Capital is calculated by dividing total debt (long term plus short term) by total shareholders' equity and total debt.

Table Five

IMATION CORP.
Non-GAAP Financial Measures
(In millions, except for per share amounts)
(Unaudited)

	Three Months Ended									Three Months Ended
	December 31, 2012									December 31, 2011
	GAAP			Adj *			Non-GAAP			GAAP			Adj *			Non-GAAP
Net revenue	$	299.1		$	-		$	299.1		$	342.3		$	-		$	342.3
Cost of goods sold		251.0			(2.3	)		248.7			290.8			(7.6	)		283.2
Adjusted gross profit	$	48.1		$	2.3		$	50.4		$	51.5		$	7.6		$	59.1

Adjusted gross margin		16.1	%					16.9	%		15.0	%					17.2	%

Operating (loss) income	$	(310.4	)	$	305.2		$	(5.2	)	$	(12.1	)	$	12.3		$	0.2

Adjusted income tax provision (benefit)	$	(1.0	)	$	0.1		$	(0.9	)	$	(0.7	)	$	4.6		$	3.9

Adjusted (loss) income	$	(310.2	)	$	305.1		$	(5.1	)	$	(12.9	)	$	7.7		$	(5.2	)

Adjusted (loss) earnings per common share - Diluted	$	(8.34	)				$	(0.14	)	$	(0.34	)				$	(0.14	)

Adjusted weighted average shares outstanding - Diluted		37.2						37.2			37.4						37.4


	Twelve Months Ended									Twelve Months Ended
	December 31, 2012									December 31, 2011
	GAAP			Adj *			Non-GAAP			GAAP			Adj *			Non-GAAP
Net revenue	$	1,099.6		$	-		$	1,099.6		$	1,290.4		$	-		$	1,290.4
Cost of goods sold		897.3			(2.3	)		895.0			1,073.7			(9.1	)		1,064.6
Adjusted gross profit	$	202.3		$	2.3		$	204.6		$	216.7		$	9.1		$	225.8

Adjusted gross margin		18.4	%					18.6	%		16.8	%					17.5	%

Operating (loss) income	$	(336.1	)	$	307.2		$	(28.9	)	$	(33.1	)	$	34.2		$	1.1

Adjusted income tax provision (benefit)	$	(0.4	)	$	0.1		$	(0.3	)	$	3.8		$	5.0		$	8.8

Adjusted (loss) income	$	(340.7	)	$	307.1		$	(33.6	)	$	(46.7	)	$	29.2		$	(17.5	)

Adjusted (loss) earnings per common share - Diluted	$	(9.09	)				$	(0.90	)	$	(1.24	)				$	(0.46	)

Adjusted weighted average shares outstanding - Diluted		37.5						37.5			37.7						37.7


*See Table Six

Table Six

IMATION CORP.
Non-GAAP Financial Measures
(In millions, except for per share amounts)
(Unaudited)

Operating (loss) income / Adjusted operating (loss) income

	Three Months Ended						Twelve Months Ended
	December 31						December 31
	2012			2011			2012			2011
Operating loss:	$	(310.4	)	$	(12.1	)	$	(336.1	)	$	(33.1	)
Restructuring and other
Restructuring		15.2			5.0			19.7			11.4
Other		3.9			(0.3	)		1.4			10.1
Goodwill impairment		23.3			-			23.3			1.6
Intangible impairment		260.5			-			260.5			-
Litigation settlement		-			-			-			2.0
Inventory write-downs related to restructuring programs included in cost of goods sold		2.3			7.6			2.3			9.1
Total adjustments		305.2			12.3			307.2			34.2
Adjusted operating (loss) income - Non-GAAP	$	(5.2	)	$	0.2		$	(28.9	)	$	1.1

Effect on diluted EPS:
(Loss) income from operations	$	(8.34	)	$	(0.34	)	$	(9.09	)	$	(1.24	)
Restructuring and other
Restructuring		0.40			0.13			0.52			0.31
Other		0.11			-			0.04			0.27
Goodwill impairment		0.63			-			0.62			0.04
Intangible impairment		7.00			-			6.95			-
Litigation settlement		-			-			-			0.05
Inventory write-downs		0.06			0.20			0.06			0.24
Reversal of net operating loss carryforward valuation		-			(0.13	)		-			(0.13	)
Adjusted diluted EPS - Non-GAAP	$	(0.14	)	$	(0.14	)	$	(0.90	)	$	(0.46	)


EBITDA:
Operating loss	$	(310.4	)	$	(12.1	)	$	(336.1	)	$	(33.1	)
Depreciation		2.2			2.3			8.3			10.7
Amortization		5.8			7.2			27.5			26.0
EBITDA	$	(302.4	)	$	(2.6	)	$	(300.3	)	$	3.6
Restructuring and other		19.1			4.7			21.1			21.5
Goodwill impairment		23.3			-			23.3			1.6
Intangible impairment		260.5			-			260.5			-
Litigation settlement		-			-			-			2.0
Inventory write-downs related to restructuring programs included in cost of goods sold		2.3			7.6			2.3			9.1
Total adjustments		305.2			12.3			307.2			34.2
Adjusted EBITDA	$	2.8		$	9.7		$	6.9		$	37.8


EBITDA is defined as operating income less depreciation and amortization. Adjusted EBITDA is defined as EBITDA before goodwill, restructuring and other, and inventory write-downs related to restructuring programs included in cost of goods sold.

The Non-GAAP financial measurements (adjusted operating income (loss), adjusted income(loss), adjusted diluted EPS, EBITDA and adjusted EBITDA) are provided to assist in understanding the impact of certain items on Imation's actual results of operations when compared with prior periods. Management believes this will assist investors in making an evaluation of Imation's performance against prior periods on a comparable basis by adjusting for these items. Management understands that there are material limitations on the use of Non-GAAP measures. Non-GAAP measures are not substitutes for GAAP measures for the purpose of analyzing financial performance. These Non-GAAP measures are not in accordance with, or an alternative for measures prepared in accordance with, generally accepted accounting principles and may be different from Non-GAAP measures used by other companies. In addition, these Non-GAAP measures are not based on any comprehensive set of accounting rules or principles. This information should not be construed as an alternative to the reported results, which have been determined in accordance with accounting principles generally accepted in the United States of America.

DELAWARE		1-14310		41-1838504
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification Number)

1 IMATION WAY OAKDALE, MINNESOTA		55128
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code:		(651) 704-4000

		Imation Corp.
		(REGISTRANT)

Date:	February 13, 2013	By:	/s/ Paul R. Zeller
			Paul R. Zeller
			Senior Vice President, Chief Financial Officer

Exhibit		Description of Exhibit
99.1		Press Release dated February 13, 2013, announcing the Company's financial results for the quarter ended December 31, 2012