Rimage Corp. (RIMG, Financial) filed Quarterly Report for the period ended 2010-03-31.
Rimage Corp. has a market cap of $152.2 million; its shares were traded at around $16.07 with a P/E ratio of 19.3 and P/S ratio of 1.8. Rimage Corp. had an annual average earning growth of 4% over the past 10 years.RIMG is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
As of and for the three months ended March 31, 2010, the Companys German and Japanese operations generated foreign revenues from unaffiliated customers of $7.0 million and operating income of $0.1 million. Net identifiable assets for these operations amounted to $10.4 million. These amounts pertain primarily to the Companys German operations. Comparable amounts for the Companys German and Japanese operations as of and for the three months ended March 31, 2009 were revenues of $8.0 million, operating income of $0.1 million and net identifiable assets of $9.5 million.
Net income / net income per share. Resulting net income for the three months ended March 31, 2010 was $0.7 million, or 4% of revenues. Comparable amounts for the three months ended March 31, 2009 were $1.2 million, or 6% of revenues. Related net income per diluted share amounts were $0.07 and $0.13 for the three months ended March 31, 2010 and 2009, respectively.
At March 31, 2010, the Company had working capital of $103.0 million, down $0.2 million from working capital reported at December 31, 2009. The decrease was primarily the result of the use of $2.7 million of cash to purchase property and equipment, partially offset by net income adjusted for non-cash items of $1.4 million and proceeds from stock option exercises of $0.1 million.
Net cash provided by operating activities totaled $0.8 million for the three months ended March 31, 2010, compared to $1.3 million in the same prior-year period. The $0.5 million decrease in cash generated from operating activities resulted from changes in operating assets and liabilities producing a $0.5 million greater use of cash for the three months ended March 31, 2010 compared to the same prior-year period. Primarily contributing to the change in operating assets and liabilities compared to the prior-year period were unfavorable changes of $1.5 million in inventories and $0.4 million in the aggregate amount of trade accounts payable, accrued compensation and accrued expenses, a $1.1 million larger increase in prepaid income taxes and prepaid expenses and a $0.3 million larger decrease in deferred income, partially offset by a $2.8 million favorable change in receivables. The change in inventories resulted from a $1.1 million increase in inventories in the current period, compared to a $0.4 million decline in the prior-year. The current period increase in inventories occurred as the Company prepared for the impact of a change in its sales model effective April 1, 2010 under which it will sell products to end-user customers through value-added resellers instead of through distributors in major markets, requiring increased inventory levels. The change in prepaid income taxes and prepaid expenses was impacted primarily by the amount and timing of payments for estimated taxes and other prepaid expenses. The change in the aggregate amount of trade accounts payable, accrued compensation and accrued expenses reflects a $0.2 million aggregate decrease in the amount of these balances in the current-year period, compared to a $0.2 million aggregate increase in the same period last year. These changes were primarily due to increased payments in the current-year period for annual incentive bonuses to employees for calendar year 2009 performance and expenditures for property and equipment, partially offset by the impact of a higher level of inventory purchases remaining in accounts payable at the end of the period. The favorable change in receivables resulted from a $2.4 million reduction in receivables in the current period and a $0.4 million increase in the prior-year period, primarily impacted by a $0.9 million decrease in sales from December 2009 to March 2010, compared to a $1.5 million increase in sales from December 2008 to March 2009.
Investing activities provided net cash of $9.9 million for the three months ended March 31, 2010, compared to a net use of cash of $1.0 million for the same prior-year period. The fluctuations in investing activities were primarily the result of $12.6 million in maturities of marketable securities during the three months ended March 31, 2010, compared to $1.0 million in purchases of marketable securities, net of related maturities, in the same prior-year period. Purchases of property and equipment during the three months ended March 31, 2010 and 2009 amounted to $2.7 million and $0.1 million, respectively. Capital expenditures in the current-year period included $2.4 million of production tooling capitalized by the Company in late 2009 associated with a new product launched during the first quarter of 2010. Remaining capital expenditures in the current-year period consisted primarily of costs to support the Companys information technology infrastructure related requirements.
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Rimage Corp. has a market cap of $152.2 million; its shares were traded at around $16.07 with a P/E ratio of 19.3 and P/S ratio of 1.8. Rimage Corp. had an annual average earning growth of 4% over the past 10 years.RIMG is in the portfolios of Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Revenues. Total revenues for the three months ended March 31, 2010 were $18.4 million, consistent with revenues of $18.4 million for the same prior-year period. Product revenues in the current-year period rose $0.5 million while service related revenues declined $0.5 million relative to the prior-year period. The increase in product revenues for the three months ended March 31, 2010 resulted from a $1.0 million increase in sales of consumable products and parts, partially offset by a $0.5 million reduction in sales of equipment.As of and for the three months ended March 31, 2010, the Companys German and Japanese operations generated foreign revenues from unaffiliated customers of $7.0 million and operating income of $0.1 million. Net identifiable assets for these operations amounted to $10.4 million. These amounts pertain primarily to the Companys German operations. Comparable amounts for the Companys German and Japanese operations as of and for the three months ended March 31, 2009 were revenues of $8.0 million, operating income of $0.1 million and net identifiable assets of $9.5 million.
Net income / net income per share. Resulting net income for the three months ended March 31, 2010 was $0.7 million, or 4% of revenues. Comparable amounts for the three months ended March 31, 2009 were $1.2 million, or 6% of revenues. Related net income per diluted share amounts were $0.07 and $0.13 for the three months ended March 31, 2010 and 2009, respectively.
At March 31, 2010, the Company had working capital of $103.0 million, down $0.2 million from working capital reported at December 31, 2009. The decrease was primarily the result of the use of $2.7 million of cash to purchase property and equipment, partially offset by net income adjusted for non-cash items of $1.4 million and proceeds from stock option exercises of $0.1 million.
Net cash provided by operating activities totaled $0.8 million for the three months ended March 31, 2010, compared to $1.3 million in the same prior-year period. The $0.5 million decrease in cash generated from operating activities resulted from changes in operating assets and liabilities producing a $0.5 million greater use of cash for the three months ended March 31, 2010 compared to the same prior-year period. Primarily contributing to the change in operating assets and liabilities compared to the prior-year period were unfavorable changes of $1.5 million in inventories and $0.4 million in the aggregate amount of trade accounts payable, accrued compensation and accrued expenses, a $1.1 million larger increase in prepaid income taxes and prepaid expenses and a $0.3 million larger decrease in deferred income, partially offset by a $2.8 million favorable change in receivables. The change in inventories resulted from a $1.1 million increase in inventories in the current period, compared to a $0.4 million decline in the prior-year. The current period increase in inventories occurred as the Company prepared for the impact of a change in its sales model effective April 1, 2010 under which it will sell products to end-user customers through value-added resellers instead of through distributors in major markets, requiring increased inventory levels. The change in prepaid income taxes and prepaid expenses was impacted primarily by the amount and timing of payments for estimated taxes and other prepaid expenses. The change in the aggregate amount of trade accounts payable, accrued compensation and accrued expenses reflects a $0.2 million aggregate decrease in the amount of these balances in the current-year period, compared to a $0.2 million aggregate increase in the same period last year. These changes were primarily due to increased payments in the current-year period for annual incentive bonuses to employees for calendar year 2009 performance and expenditures for property and equipment, partially offset by the impact of a higher level of inventory purchases remaining in accounts payable at the end of the period. The favorable change in receivables resulted from a $2.4 million reduction in receivables in the current period and a $0.4 million increase in the prior-year period, primarily impacted by a $0.9 million decrease in sales from December 2009 to March 2010, compared to a $1.5 million increase in sales from December 2008 to March 2009.
Investing activities provided net cash of $9.9 million for the three months ended March 31, 2010, compared to a net use of cash of $1.0 million for the same prior-year period. The fluctuations in investing activities were primarily the result of $12.6 million in maturities of marketable securities during the three months ended March 31, 2010, compared to $1.0 million in purchases of marketable securities, net of related maturities, in the same prior-year period. Purchases of property and equipment during the three months ended March 31, 2010 and 2009 amounted to $2.7 million and $0.1 million, respectively. Capital expenditures in the current-year period included $2.4 million of production tooling capitalized by the Company in late 2009 associated with a new product launched during the first quarter of 2010. Remaining capital expenditures in the current-year period consisted primarily of costs to support the Companys information technology infrastructure related requirements.
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