UPDATE 1-Imation Q2 profit beats Street view; to cut 7 pct jobs

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July 22 (Reuters) - Imation Corp (IMN.N), which makes computer data-storage products, posted a better-than expected quarterly profit helped by improved margins in optical and flash products, and said it would cut 7 percent of its workforce as it is closing its Camarillo, California plant.

The company said it expects charges of up to $20 million on the plant closure. It will take the majority of the charges in the second half of 2008.

For the second quarter, the company reported net income of $7.2 million, or 19 cents a share, compared with a loss of $1.4 million, or 4 cents a share, a year ago. Excluding special items, it earned 26 cents a share.

Revenue increased 32.5 percent to $547.0 million,.

Analysts on average expected the company to earn 24 cents a share, on revenue of $531 million, according to Reuters Estimates.

Imation said it will close its Camarillo plant and focus all tape coating in its Weatherford, Oklahoma plant, resulting in elimination of 140 of the total 1,950 jobs.

The company expects about $15 million to $20 million in annualized cost eliminations.

For 2008, the company expects to earn $1.26 to $1.43 a share, including charges of about 33 cents a share. Previously, the company had estimated earnings of $1.51 to $1.68 a share, including charges of about 8 cents a share.

Imation continues to expects revenue of about $2.40 billion for the year.

Analysts on average expect the company to earn $1.67 a share, excluding special items, on revenue of $2.39 billion, for the year. (Reporting by Anand Basu in Bangalore)