Rimage reports first quarter results

Sales of $21.5 million were up 17% from $18.4 million in the year-earlier period. First quarter sales were slightly above the previously-issued financial guidance for this period of $19 to $21 million. Operating income totaled $2.3 million, an increase of 146% from $944,000 in the first quarter of 2010. Net income rose 116% to $1.5 million or $0.16 per diluted share, from $695,000 or $0.07 per diluted share in last year’s first quarter. Net income exceeded the guidance for this period of $0.11 to $0.15 per share. Cash and marketable securities totaled $117.6 million at the end of the first quarter, up from $116.8 million at the beginning of 2011. During the quarter, cash of approximately $2.0 million was used to make a strategic minority investment in BriefCam, Ltd., whose video synopsis software will enhance Rimage’s video surveillance solution with analytical capabilities. Cash also was used to purchase increased inventories of consumable supplies to mitigate potential supply disruptions resulting from the impact of the Japanese earthquake on Rimage’s supply chain.