Rimage Reports Continued Strong Qumu Growth During First Quarter 2013

Rimage Corporation reported its financial results for the first quarter ended March 31, 2013. Total company revenues for the first quarter 2013 were $19.5 million, unchanged from total revenues in the first quarter of 2012.

Qumu First Quarter Financial Highlights
Qumu revenues totaled $4.3 million in the first quarter of 2013, an increase of 216% from $1.4 million in the first quarter of 2012 and slightly better than revenues in the seasonally strong fourth quarter of 2012. Qumu contracted commitments were $4.4 million in the recent first quarter. This represented a 225% increase from the first quarter last year.

Qumu’s backlog of contracted revenues totaled $12.4 million at March 31, 2013, compared to $12.7 million at December 31, 2012

Sherman L. Black, president and CEO, said, “Qumu’s secure enterprise video solution continues to attract new customers and our momentum in the marketplace continues to build. Our first quarter was anchored by three key wins – a global technology retailer, a top five global financial institution and a global engineering and construction company. The adoption of video as a key communication tool within companies is increasingly expanding. Qumu offers a single solution for capturing video from any source, automating the secure distribution of it, and maintaining complete control of that video from its creation to its consumption. Our innovative solutions release the power in video to fully engage and empower employees, partners, clients, and their customers.”

“Enterprises are focused on the security of their data as well as the need for cost-effective distribution, and Qumu is well equipped to address both these requirements. Our software allows IT and other corporate managers to send videos and rich content to employees utilizing their existing IT infrastructure.

“We have been moving aggressively to strengthen Qumu’s position to capitalize on the tremendous opportunity we see. In the past six months, we have made substantial progress in building a more effective, efficient sales and marketing organization. We have expanded our presence internationally and improved our service capabilities. In addition we will be launching a new cloud version of our product that will expand our market reach.

“The outlook for Qumu remains strong. The enterprise video communications market is a large and emerging growth market. In a short period of time, Qumu has established itself as a leader in this space. In a report published in March 2013 by Forrester, Qumu was named one of the top two leaders in providing video communications solutions. We are excited about the opportunity ahead for Qumu and remain focused on ensuring competitive products and features, enhancing visibility and driving revenue growth,” Mr. Black continued.

Disc Publishing First Quarter Financial Highlights
“Disc publishing revenues in the first quarter were down 16% from the first quarter of 2012. The first quarter last year included a large refresh order for a major retailer that did not recur this year. In addition, demand in other segments of the business declined more sharply than anticipated, reflecting a shift to alternative technologies and continued funding challenges for some customers. With our expectation that the market will continue to transition, we will take the actions needed to maximize the ability of this business to generate cash and appropriately manage this declining business over time,” Mr. Black concluded.