Rimage Corp. has a market cap of $142.44 million; its shares were traded at around $14.9 with a P/E ratio of 18.63 and P/S ratio of 1.61. Rimage Corp. had an annual average earning growth of 4% over the past 10 years.
Highlight of Business Operations:Rimages traditional digital disc publishing systems are divided into three primary product lines: the Producer line of equipment for higher volume requirements for production of recordable CD, DVD or Blu-ray media; the Professional line of equipment for front office production of recordable CD, DVD or Blu-ray media; and the Desktop line of lower-cost products for office and other desktop applications. The Producer line of hardware products continues to generate a significant portion of Rimages revenue, comprising 17% of total revenues during 2010 at $15.3 million, 21% during 2009 at $17.5 million and 22% during 2008 at $20.3 million. The Professional line of hardware products contributed 25% of total revenues in 2010 at $21.9 million, 12% in 2009 at $10.4 million and 11% in 2008 at $10.0 million. The Desktop line of hardware products contributed 4% of total revenues in 2010 at $3.6 million, 6% of total revenues in 2009 at $5.1 million and 6% in 2008 at $5.8 million. The balance of revenue in each year was generated through sale of Rimage-branded blank recordable CD, DVD and Blu-ray media, ribbons, ink cartridges, parts, repair services and maintenance contracts. These recurring revenues comprised 54% of total revenues during 2010 at $47.9 million, 60% of total revenues during 2009 at $50.3 million and 61% during 2008 at $55.3 million. The decrease in recurring revenues has been driven mainly by customers use of alternative technologies and the economic downturn, which have compressed demand for many products including the CD, DVD, and Blu-ray media products created by Rimage customers.
In 2010, Rimage reduced its Producer line of products from seven to three basic configurations in order to simplify operations and reduce costs while continuing to meet the varying needs of its commercial customers. The Rimage 8100N system, part of the Producer III Series of publishing systems introduced in 2006, provides industry leading speed and throughput for on-demand production of CD, DVD or Blu-ray discs with digital content. The Rimage 8100N system utilizes up to four simultaneous data streams and four recorders and provides for a capacity of 300 discs. The Rimage 7100N system, also part of the Producer III Series, has two recorders. The Rimage 6100N system, introduced in 2008 as an expansion of the Producer III Series, has a single recorder. All Rimage Producer systems are network-attached, have a control center embedded inside the unit and are available with either Rimages Everest or Prism printers. The Producer line also includes AutoPrinter systems, which incorporate either an Everest or Prism printer. List prices for the Producer line of publishing systems currently range from $14,950 to $37,950.
The Professional Series. The Company augmented its Producer product line with the introduction of the Professional Series line of digital disc publishing systems in 2007. The Professional Series systems are compact, network-attached publishing systems that feature an Everest printer and a small footprint. Rimage introduced two new digital publishing systems to its Professional Series line of products effective March 1, 2010. The Rimage Professional Series 5400N and Rimage Professional Series 3400 offer an entry point for on-demand disc publishing. Both systems utilize two recorders, three input bins and an Everest printer. The Rimage Professional Series 5400N has a control center embedded inside the unit, while the Rimage Professional Series 3400 does not contain an embedded control center. The Professional Series 5400N and 3400 line of systems replaced the 5300N and 5100N, which were removed from general availability in October 2010. List prices for the Professional Series 5400N and 3400 currently range from $6,950 to $15,950.
Rimages expenditures for research and development were $6.5 million, $7.1 million and $5.3 million in 2010, 2009 and 2008, representing 7.3%, 8.6% and 5.7% of revenues, respectively. Rimage anticipates its expenditures in research and development in 2011 will increase relative the levels experienced during 2010 to support a sustained level of new product development initiatives and improve existing products.
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