OAKDALE, Minn.-- Imation Corp. (NYSE:IMN) reported results for the third quarter ended September 30, 2000 that were in line with previously reported preliminary results. Excluding special charges, the Company reported net income for the quarter ended September 30, 2000 of $14.1 million, or $0.40 per diluted share, on revenue of $288.5 million. This compares to income from continuing operations of $13.8 million, or $0.37 per diluted share, on revenue of $346.0 million for the comparable period last year. Reported results for the current quarter include special charges totaling $61.1 million pre-tax, which include restructuring charges of $30.1 million and $31.0 million of non-cash, capitalized software write-off. Including special charges, the Company reported a net loss of $34.4 million, or $0.99 per diluted share. Operating income, excluding special charges, was $800,000 for the quarter compared to $22.7 million in the year earlier period. The Company reported $8.9 million of non-operating income for the quarter ended September 30, 2000, which included $5.0 million of venture capital distributions. Non-operating income for the comparable period last year was $300,000. Tax benefits were realized in the September 30, 2000 quarter. For the nine months ended September 30, 2000, the Company reported net income, excluding special charges, of $48.4 million, or $1.35 per diluted share, on revenue of $926.4 million. This compares to income from continuing operations of $28.0 million, or $0.74 per diluted share, on revenue of $1,041.4 million for the comparable period last year. Including special charges, the Company reported a net loss for the nine months ended September 30, 2000 of $100,000. Working capital metrics improved in the quarter due to continued management actions in both accounts receivable and inventories. Accounts receivable Days Sales Outstanding declined to a record low 56 days compared to 61 days in the second quarter and 68 days in the year earlier period. Days of inventory supply declined to a record low of 66 compared to 76 in the second quarter and 90 in the year earlier quarter. Cash increased to $212.2 million with cash flow from operations of $30.5 million. During the quarter, the Company repurchased 623,500 common shares for $14.6 million. The remaining authorization for share repurchases is 3.3 million shares. Commenting on the results, Bill Monahan, chairman and chief executive officer said: "Profitable revenue growth is the Company's number one challenge. Cumulative actions taken over the past 18 to 24 months to streamline the Company and lower the cost structure, together with the restructuring actions we have just announced, resulted in positive cash flow, improved working capital metrics, and a profitable quarter excluding special charges. We have significant financial flexibility and remain committed to investing in the businesses. Nonetheless, we are aggressively pursuing alternatives, as we said earlier this month, to create value for our shareholders, customers and employees in these businesses." "Restructuring actions should benefit fourth quarter results and have an increasingly positive effect on early 2001 results. In addition, fourth quarter sales typically show some seasonal rebound compared to the third quarter. We expect the revenue mix, as well as the continued upward pressure on SG&A costs resulting from the decline of transition services, to keep fourth quarter operating income, excluding special charges, in the range of $2 to $6 million. The remaining restructuring charges and the non-cash, capitalized software write-off in the fourth quarter are expected to total $37 million. We are planning for improvement in operating income from the low point in the quarter just ended, resulting in growth in operating income for the full year next year."