Rimage is basking in a sunny sales forecast for its 2010 third quarter. The company, known for its digital duplication, publishing and labeling of CDs, DVDs and Blu-rays proves with its numbers that it can hold steady in a market that is competing with advancements in digital distribution and flash technology.
Sales for the third quarter of 2010 measured at $23.4 million, up 4 percent from last year’s $22.4 million during the same quarter. Even with an adjustment for foreign currency rates, sales still come out ahead of 2009 by 2 percent.
The company’s cash and liquid assets made a significant jump between the second and third quarter, from $108 million to more than $113 million.
The CEO of Rimage, Sherman L. Black, credits the company’s business strategy. “Rimage’s third quarter results, which were largely consistent with our internal forecast for this period, benefited from our ongoing drive to transform Rimage by maximizing the opportunities available to our traditional disc publishing business and generating new solutions-based revenue streams.”
Black goes on to say that the company’s plans for future growth will evolve with the market trends to include online publishing solutions. A new business venture established in the third quarter also has potential to garner more profit and global disc use through a newly approved Chinese business license. Rimage will be responsible for disc publishing needs for medical imaging at health facilities in China.
Thanks to this new business development, the company will hire more individuals and they hope to see added profit from the overseas expansion reflected in 2011 sales numbers.
The millions of dollars made reveal that disc duplication, printing and labeling still have a stronghold on consumer’s creative and professional applications worldwide. The Rimage customer is turning to CDs, DVDs and Blu-rays for a reliable form of long term storage, and he or she is willing to pay the price for the professional results rendered from a disc printed with thermal artwork.
What do you think of Rimage’s latest profit boost? Do you think the company’s online and overseas ventures are good strategies? Give us your thoughts on the future of disc equipment manufacturer.