Imation, manufacturer of the SuperDisk has joined the ranks of IT companies issuing profits warnings.

The company warned on Friday that it will miss analysts expectations for earnings in its current quarter, which ends September 30. It expects to reach "about break-even".

Imation blames this on weaker-than-expected demand for its products, pricing pressures, and the negative effect of foreign currency pressures, particularly from the Euro. Approximately $8 million of the anticipated revenue decline is the result of foreign currency translation. Sales of newer products generally showed good year-over-year growth, says the company.

To minimize the damage, Imation has hired investment banking firm, Goldman Sachs to help it examine strategic alternatives, such as financial restructuring, stock repurchases, spin-offs, joint ventures, and business combinations.

MacCentral reports that the company intends laying off ten per cent of its staff, and launching a series of other, drastic, cost-cutting measures

Imation also said that it expects to record $32 million in restructuring charges and a $66 million non-cash software write-off charge in the second half of the year.