Exhibit 99.1
RIMAGE REPORTS STRONG SECOND QUARTER OPERATING RESULTS;
EARNINGS OF $0.18 PER SHARE EXCEED PREVIOUSLY-ISSUED FINANCIAL GUIDANCE
MINNEAPOLIS, MN--JULY 23, 2003--Rimage Corporation (Nasdaq NMS: RIMG) today
reporteD sales of $12,791,000 for the second quarter of 2003 ended June 30, up
from $12,310,000 in the year-earlier quarter. Excluding the one-time order of
approximately $2.0 million received from Eastman Kodak Company in the second
quarter of 2002, sales for the current quarter were up 24% on a year-over-year
basis.
Net income for the second quarter of 2003 came to $1,717,000 or $0.18 per
diluted share, compared to $1,801,000 or $0.19 per diluted share a year earlier.
The Company previously forecasted second quarter earnings of $0.15 to $0.17 per
diluted share.
Bernard P. (Bernie) Aldrich, president and chief executive officer, commented:
"We are very encouraged by Rimage's strong second quarter performance. Although
we continued to face challenging economic conditions in both the U.S. and
Europe, we exceeded the strong sales posted in last year's second quarter, which
included the large, nonrecurring Kodak order. It is important to realize that no
single customer accounted for a disproportionate share of Rimage's sales in the
current quarter. Our balanced performance reflects the strength of Rimage's
global distribution channel and the steadily growing acceptance of our CD/DVD
publishing and printing solutions in our targeted markets: medical imaging,
digital photography, banking and finance, and government. We also are continuing
to benefit from the strength of our European operation, which made a solid
contribution to our consolidated second quarter results. Given all these
factors, we remain very optimistic about our business prospects over the balance
of 2003."
SECOND QUARTER HIGHLIGHTS
o International sales accounted for 43% of total second quarter revenues.
Currency effects increased worldwide sales by 7.2% in this year's second
quarter.
o 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 and cartridges, media and
parts, increased 40% in the second quarter from the year-earlier period and
accounted for 30% of total sales.
o Rimage ended the quarter with a Desktop order backlog of approximately
$750,000, all of which is scheduled for shipment in the third quarter. The
Company said the market has shown strong interest in its new Desktop line
since its April introduction and that efforts are underway to build an
office supply distribution channel for this promising product.
o Selling, general and administrative expense increased 13% in the second
quarter, reflecting investments in sales and marketing programs aimed at
strengthening Rimage's ability to penetrate its targeted markets.
o Cash and short-term investments totaled $40.0 million at June 30, 2003, an
increase of $3.7 million or 10% from $36.3 million at the end of 2002. The
Company's balance sheet remains debt-free, while shareholder's equity rose
to $47.0 million as of June 30, 2003, from $42.2 million at year-end 2002.
THIRD QUARTER 2003 GUIDANCE
For the third quarter of 2003 ending September 30, Rimage is forecasting
earnings of $0.19 to $0.21 per diluted share on revenues of $13 million to $14
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:
Bernard P. (Bernie) Aldrich, CEO Richard G. Cinquina
Robert M. Wolf, CFO Equity Market Partners
Rimage Corporation
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 SIX MONTHS ENDED
June 30, June 30,
2003 2002 2003 2002
---------- ---------- ---------- ----------
Revenues $12,791 $12,310 $24,335 $22,196
Cost of Revenues 6,459 6,203 12,267 11,342
Gross Profit 6,332 6,107 12,068 10,854
Operating Expenses:
Research and Development 926 1,013 1,775 1,890
Selling, General and Administrative 2,823 2,503 5,457 4,802
Total Operating Expenses 3,749 3,516 7,232 6,692
Operating Income 2,583 2,591 4,836 4,162
Other Income, Net 121 245 237 460
Income Before Income Taxes 2,704 2,836 5,073 4,622
Income Tax Expense 987 1,035 1,852 1,687
Net Income 1,717 1,801 3,221 2,935
Net Income Per Basic Share $.20 $.21 $.37 $.34
Net Income Per Diluted Share $.18 $.19 $.34 $.31
Basic Weighted Average
Shares Outstanding 8,757 8,705 8,742 8,691
Diluted Weighted Average
Shares Outstanding 9,644 9,496 9,556 9,488
Consolidated Balance Sheet Information:
Balance As Of
-----------------------------------
June 30, December 31,
2003 2002
---------- ----------
(Unaudited)
Cash and Cash Equivalents $40,024 $36,337
Accounts Receivable 6,426 6,644
Inventories 4,045 3,042
Total Current Assets 52,020 47,337
Property and Equipment, Net 1,267 1,314
Total Assets 53,344 48,709
Current Liabilities 6,353 6,552
Stockholders' Equity 46,991 42,157
CONFERENCE CALL AND REPLAY
Rimage Corporation will review its second quarter operating results in a
conference call at 4:30 PM Eastern today. To participate, call 1-800-257-7087
about 10 minutes before the start time and ask for the Rimage conference call. A
replay of the conference call will be available through July 30 by dialing
303-590-3000 and providing the 544975 confirmation code. Investors also can
listen to the conference call at www.rimage.com. Listeners should go to this web
site at least 15 minutes before the scheduled start time to download and install
any necessary audio software.