Knobias Clip Report (07-23-2008) RIMG
Submitted By Knobias ClipReport
RIMG: Management Discusses Q2 Earnings and Gives Q3 Guidance
By Fain Hughes, fhughes@knobias.com
Shares of Rimage Corporation (RIMG) saw healthy gains after the Company reported sales of $22,686,000 for the second quarter of 2008 ended June 30, compared to $25,486,000 in the year-earlier period. Second quarter earnings of $1,927,000 or $0.19 per diluted share were down from $2,921,000 or $0.28 per diluted share in the comparable period of 2007.
Bernard P. Aldrich, President and CEO, commented in a conference call today, “Although our performance continued to be affected by weak economic conditions, Rimage’s second quarter results exceeded the downwardly revised guidance that we issued on June 9, due primarily to higher than forecasted sales transacted through our global distribution channel during the latter stages of the quarter. At this time, we believe our performance should remain relatively stable, and consistent with this outlook, we are forecasting earnings of $0.17 to $0.23 per diluted share on revenues of $21 to $23 million for the third quarter of 2008.”
Robert M. Wolf, CFO of Rimage, added, “We believe that our gross margins and R&D spending in Q3 will be at or near the Q2 level.”
Mr. Aldrich explained, “We expect our results to become less ‘lumpy’ in the future and somewhat more predictable. We expect our European business to continue to show strength throughout 2008. We have also added more than thirty value-addded resellers focused on the video market and established strategic partnerships with key industry players.”
He concluded, “We have also instituted cost reductions which will take full effect in the third quarter, and we have every reason to believe that Rimage’s future is very promising.”
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