EXHIBIT 99.1
RIMAGE REPORTS STRONG FIRST QUARTER SALES AND EARNINGS
MINNEAPOLIS, MN--APRIL 23, 2003--Rimage Corporation (Nasdaq NMS: RIMG) today
reported that net income for the first quarter of 2003 ended March 31 increased
33% to $1,504,000 or $0.16 per diluted share, from $1,134,000 or $0.12 per
diluted share in the year-earlier period. Revenues rose 17% to $11,544,000, from
$9,886,000 in the first quarter of 2002.
Bernard P. (Bernie) Aldrich, president and chief executive officer, commented:
"Rimage is continuing to perform at a high level despite the sluggish global
economy and uncertainty created by the Iraqi conflict. Our above-plan earnings
for this period were generated by the across-the-board strength of Rimage's
operations, with no single customer accounting for a disproportionate share of
our first quarter sales. As planned, we made significant investments in sales
and marketing initiatives during the first quarter. We also launched an
important new CD/DVD publishing system, designed specifically for the mini-lab
segment of the digital photography market. In addition, a new-generation Desktop
publishing system will be introduced in April. These product launches and
investments in sales and marketing programs are expected to have a positive
impact on our operating results over the balance of 2003. As a result, we remain
very optimistic about our near and longer-term prospects."
FIRST QUARTER HIGHLIGHTS
* International sales accounted for 42% of total first quarter revenues.
Currency effects increased worldwide sales by 7.6% in this year's first
quarter.
* Reflecting the growth of Rimage's worldwide installed base of CD/DVD
publishing systems, recurring revenues, including sales of consumable
supplies, maintenance contracts, printer ribbons, media and parts,
increased 34% in the first quarter from the year-earlier period and
accounted for 32% of total sales.
* Selling, general and administrative expense increased 15% in the first
quarter, reflecting investments in sales and marketing programs aimed at
strengthening Rimage's ability to penetrate its targeted markets. These
expense levels are expected to remain at relatively high levels for the
next few quarters.
* Rimage started shipping its new DiscLab system for the photography market
in the first quarter. Designed specifically for mini-lab and related
environments, the DiscLab system provides mini-labs with the same CD/DVD
publishing quality and capabilities as wholesale photo-finishing labs. A
significantly upgraded Desktop publishing system, equipped with an
HP-enabled inkjet color surface label printer, will be introduced in April.
* Cash and short-term investments totaled $37.1 million at March 31, 2003, an
increase of $0.8 million from $36.3 million at the end of 2002. The
Company's balance sheet remains debt-free, while shareholder's equity rose
to $43.7 million as of March 31, 2003.
SECOND QUARTER 2003 GUIDANCE
For the second quarter of 2003 ending June 30, Rimage is forecasting earnings of
$0.15 to $0.17 per diluted share on revenues of $12.0 million to $13.0 million.
In the second quarter of 2002, Rimage's operating results were favorably
affected by a one-time order from Eastman Kodak totaling approximately $2.0
million.
ABOUT RIMAGE
Rimage Corporation is the world's leading provider of recordable CD and DVD
publishing systems, which are used by businesses to produce discs with
customized digital content on an on-demand basis. Rimage's publishing systems,
which span the range from high to low CD/DVD production volumes, integrate
robotics, software and surface label printers into a complete publishing
solution. Rimage is focusing its CD/DVD publishing solutions on a set of
vertical markets with special needs for customized, on-demand digital
information: digital photography, banking and finance, medical imaging, and
government.
Statements regarding the Company's anticipated performance in 2003 are
forward-looking and therefore involve risks and uncertainties, including but not
limited to: market conditions in the computer data storage market, competitive
products and changes in technology, factors in overseas markets that could
affect international sales, and other factors set forth in the Company's filings
with the Securities and Exchange Commission.
# # #
For additional information, contact:
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Bernard P. (Bernie) Aldrich, CEO Richard G. Cinquina
Robert M. Wolf, CFO Equity Market Partners
952/944-8144 212/461-7145 or 612/338-0810
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RIMAGE CORPORATION
Selected Consolidated Financial Information
(In thousands except per share data)
(Unaudited)
CONSOLIDATED STATEMENT OF OPERATIONS INFORMATION:
Three months ended
March 31,
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2003 2002
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Revenues $11,544 $ 9,886
Cost of Revenues 5,809 5,139
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Gross Profit 5,735 4,747
Operating Expenses:
Research and Development 848 878
Selling, General and Administrative 2,634 2,298
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Total Operating Expenses 3,482 3,176
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Operating Income 2,253 1,571
Other Income, Net 115 215
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Income Before Income Taxes 2,368 1,786
Income Tax Expense 864 652
------- -------
Net Income 1,504 1,134
======= =======
Net Income Per Basic Share $ .17 $ .13
Net Income Per Diluted Share $ .16 $ .12
Basic Weighted Average
Shares Outstanding 8,727 8,646
Diluted Weighted Average
Shares Outstanding 9,483 9,454
CONSOLIDATED BALANCE SHEET INFORMATION:
Balance As Of
------------------------
March 31, December 31,
2003 2002
--------- ---------
(Unaudited)
Cash and Marketable Securities $37,113 $36,337
Accounts Receivable 6,233 6,644
Inventories 3,918 3,042
Total Current Assets 48,531 47,337
Property and Equipment, Net 1,334 1,314
Total Assets 49,923 48,709
Current Liabilities 6,191 6,552
Stockholders' Equity 43,731 42,157
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CONFERENCE CALL AND REPLAY
Rimage Corporation will review its first quarter operating results in a
conference call at 4:30 PM Eastern today. Investors can listen to the conference
call at www.rimage.com or www.vcall.com. It is recommended that listeners go to
one of these web sites at least 15 minutes before the scheduled start time to
download and install any necessary audio software. A replay of the conference
call will be available through April 30 by dialing 719-457-0820 and providing
the 507421 confirmation code.