Rimage falls on Q2 profit decline
Shares of Rimage Corp. (Nasdaq: RIMG) are moving backward following news the provider of compact digital and versatile disc recordable publishing systems saw its second-quarter profit decline, missing expectations.
Net income for the three months ended June 30 was $2.92 million, or $0.28 per share, compared with a net income of $3.38 million, or $0.33 per share, during the same quarter of 2006, the Minneapolis-based company announced after Wednesday’s close.
Two analysts polled by Thomson Financial were looking for earnings of $0.32 per share.
Orders from two major U.S. retailers helped revenues rise slightly to $25.49 million, compared with $25.32 million during the second quarter of 2006. However, that’s 9.29% below Wall Street’s expected revenues of $28.1 million.
The shortfall does not seem to bother Bernard Aldrich, Rimage’s President and CEO.
“We believe our large second quarter retail orders are a further indication that Rimage’s advanced disc publishing technology is becoming the retail industry standard for the on-demand publishing of photos and other digital data,” he said.
The company did not release the names of the retailers.
On a positive note, Aldrich said he is forecasting rosier third-quarter results in anticipation of higher retail sales. He expects earnings between $0.35 per share and $0.40 per share, on revenues of $29.0 million to $31.0 million, for the quarter ending Sept. 30. Analysts were projecting a net income of $0.51 per share on $36.7 million in revenues.
Rimage also reported that its board has authorized the repurchase of up to 500,000 shares of common stock.
At 12:18 a.m. ET the stock was down $6.27, or 20%, to $24.75. The 52-week high of $34.63 was achieved on July 12. The 52-week low of $20.50 was set on Oct. 18, 2006.
