Exhibit 99.1
This presentation contains “forward-looking statements” as that term is defined in the
Private Securities Litigation Reform Act of 1995. These statements are based on
managements’ current
expectations and involve risks and uncertainties, which may
cause results to differ materially from those set forth in the statements. The forward-
looking statements may include statements regarding future financial results and
performance, achievements,
plans and objectives, product development, product
potential, dividend payments and share repurchases. No forward-looking statement can
be guaranteed, and actual results may differ materially from those projected. Rimage
undertakes
no obligation to publicly update any forward-looking statement, whether as a
result of new information, future events or otherwise. Forward-looking statements in this
presentation should be evaluated together with the many uncertainties that affect
our
business, particularly those mentioned in the risk factors and cautionary statements set
forth in our Form 10-K for the year ended December 31, 2009, and in our periodic reports
on Form 10-Q and Form 8-K. These reports are available
on our website at
www.rimage.com.
Forward-Looking Statements
Key Takeaways
Corporate Overview
Recovery Progress in 2010
Transformation: Virtual Publishing
2011 Outlook
Capital Structure Actions
Agenda
Key Takeaways
Corporate Overview
Recovery Progress in 2010
Transformation: Virtual Publishing
2011 Outlook
Capital Structure Actions
Agenda
Helping people move information since 1978
Successfully evolved with technology changes, from floppy discs to optical
World’s leading provider of workflow integrated digital publishing systems that
produce CD/DVD/Blu-ray discs with customized content and durable color or
monochrome disc labeling
Key vertical markets and applications include video workflows, enterprise content
distribution, retail, medical imaging and public safety
Operations in North America, Europe, Asia
Optical disc publishing market is mature, but should remain a profitable cash generator
Embedded in thousands of workflows that generate steady stream of recurring
revenues
New geographies and solutions extending the life cycle
Developing new virtual publishing platform consistent with market trends and customer
feedback
About Rimage
Key Takeaways
Corporate Overview
Recovery Progress in 2010
Transformation: Virtual Publishing
2011 Outlook
Capital Structure Actions
Agenda
Successfully Strengthened the Core
Strengthened Sales
Model
Eliminated distributors in
U.S., U.K., and Germany
Launched web commerce
system for consumables
Enhanced regional
coverage
Initiated solutions selling
Refreshed Product
Line
Simplified product
offerings from 27 to 13
Successful 5400 launch
Workhorse for mainstream
applications and retail
Improved Focus on
Aftermarket
Higher service attach
rates
Increased media sales
Reduced COGs
Objective
Utilize 5400 launch to drive a refresh of the retail
installed base
Results
Announced an $11M agreement with Fuji in May, 2010
Revised down to $9.9M in October
Shipped approximately $9M in 2010, with balance to
ship in Q1 2011
Significant cost improvements with 5400 and
consumables
Extended the life of key market segment
Retail Refresh
Retail
Public Safety Solutions Added Revenue
Building traction with $2.9M in
government orders
Minority investment in BriefCam
Adding new products and systems
integrators
Introduced two new solutions
Partnered with key solution integrators
Sold to customer sponsors / industry
influencers
Surveillance
Digital
Forensics
Market expansion is gated by public spending
Creating New Demand by Penetrating
Emerging Markets
Rimage Information Technology (RIT)
Joint venture to deploy digital publishing solution for
medical imaging in Chinese hospitals as they transition
from analog film to optical
Asia
Medical
Market
JV agreement completed with Systex/Ted PC
Business license and General Manager in place
Shanghai office opened, partner recruitment in
process
Sold to customer sponsors / industry influencers
Significant revenue potential
Approximately 8,000 Class 2 and 3 hospitals
X-ray film annual revenue of > $300M creates a
significant optical disc publishing consumable
opportunity
Results of 2010 Recovery Initiatives
New solutions revenues accounted for 7% of 2010 equipment sales
New solutions, retail refresh extend consumable aftermarket revenues
EPS From Operations
EPS From Interest Income
Revenues
EPS
in millions
Op Ex Increases Due to New Business
Investments Affecting Earnings
in millions
And Rimage’s Cash Position Remains
Extremely Strong
in millions
Key Takeaways
Corporate Overview
Recovery Progress in 2010
Transformation: Virtual Publishing
2011 Outlook
Capital Structure Actions
Agenda
Rimage Today
Rimage’s disc publishing business forecasted to
remain a profitable cash generator
Embedded in thousands of workflows that
generate steady stream of recurring revenues
New geographies and solutions extending the
life cycle
Succeeded in stabilizing
our optical business
However, disc publishing
market is mature and
technology substitution is
occurring from
online/web-based
offerings
Today’s #1 priority – develop a growth engine
Consistent with market trends and customer
requirements
Natural extension of core disc publishing business
Core value: custom, digital content delivery
Enables businesses to
Publish custom content – 1 to 1, 1 to few
Integrate end-to-end workflows
Monetize digital assets
Provide value-added services
Protect sensitive information
Push content to their users
Robust product line built on mature technologies
Platform provides access to a broad range of vertical markets
>20,000 unit installed base
Current Publishing Capabilities Provide
Access to Vertical Markets
Personalized
Secure
High capacity
Permanent
Retail
Financial
Services
Video
Production
Medical
Surveillance
Law
Enforcement
Professional
Services
Manufacturing
Sports Video
Education
Changing Technology Landscape
*Source: Cisco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2010-2015; February 1, 2011.
In 2014, the equivalent of 12 billion DVDs will
cross the Internet
each month**
**Source: Cisco Visual Networking Index: Forecast and Methodology. 2009-2014; June 2, 2010
Changes Are Creating Related New Markets
1OVP and Video CMS 2010-2012, AccuStream Research, April 2010
2Magic Quadrant for Managed File Transfer, Gartner, June 2008
3Worldwide Storage-as-a-Service Market Size and 2008-2012 Forecast, IDC, 2008
But end-to-end solutions are not available
Online
Video
Platforms1
Managed
File
Transfer2
Online Backup
Services3
Market Size
$480 million
$450 million
$3.0 billion
Growth
71%
21%
29%
Unable to publish across a
growing list
of devices
Lack of universal, failsafe
security
Enterprise-grade,
end-to-end solutions don’t
exist
File size and bandwidth
may impede user
experience
Market Needs Are Unmet By Current Online
Publishing Solutions
Some customers have
persistent need for disc
publishing
Publishers
Redundant workflows add cost
Weak security inhibits monetization
Marginal customer experience
Customers
Loss of customer intimacy
Added distribution costs
3rd Party Solutions
Online Publishing
Disc Publishing
iStore
Why Rimage?
Based on research
with over 75
customers, there is
a strong need for
an end-to-end
virtual publishing
solution that
integrates with
existing disc
publishing
workflows
Rimage has unique
access to the
existing physical
disc publishing
infrastructure
An installed base of
over 20,000 disc
publishing systems
Through our partner
network, we have
industry-specific
knowledge and
contacts
to build the
right solution
Rimage can provide
a single solution
that enables joint
physical / virtual
publishing
without
added workflow
complexity
We are uniquely positioned to influence the migration from physical to virtual publishing
Content Staging: transcoding and
watermarking for video
Mobile: Publish to multiple platforms and
devices
Security: Flexible and persistent (online
and offline)
Analytics: Robust monitoring and
customer intimacy
Rimage is Pursuing the Technology Building
Blocks for Virtual Publishing
Comprehensive Platform Meets Current and
Future Market Needs
Rimage is positioned to help publishers migrate
workflows with the least disruption and cost
Meet persistent disc needs from
some customers
Meet fast-changing multi-device
publishing needs
Key Takeaways
Corporate Overview
Recovery Progress in 2010
Transformation: Virtual Publishing
Use Cases
2011 Outlook
Capital Structure Actions
Agenda
Business Content Distribution
Customer Profile: Financial services company delivers secure, custom statements,
reports, and rich media
content to field agents and customers.
Production speed and accuracy
Secure delivery of content
Eliminate paper-based reports
Deliver high quality, professional product
Deliver secure, personalized rich
media reports
Access content on mobile devices
Protect content in-transit and once
delivered
Meet regulatory & SLA requirements
with push-based delivery
Disc
Publishing
Virtual
Publishing
Future Opportunity
Account-specific
reports
Account-specific
reports
Marketing Content Distribution
Customer Profile: Large university distributes everything from recruiting materials and
course
materials to student work and university-licensed software
Manage disc duplication costs
Provide high quality product
Eliminate dated inventory
Offer on-demand custom packages
Interactive
recruiting
materials
Deliver to multiple devices
Recruit with rich media
Security and policies aid
application deadlines
Single push delivery:
refresh existing and deliver
new content
Licensed
software
Course
materials
Course
materials
Disc
Publishing
Virtual
Publishing
Future Opportunity
Mid-Market Video Distribution
Customer Profile: Video distribution of training and development
films for Fortune 500
and government agencies
Copyrighted premium content
Just-in-time inventory
Speed and flexibility to deliver
content when ordered
Strategic platform to grow business
Free previews using
push-based delivery
Flexible policies drive
purchase decision
Security enforces copyright
requirements
Multiple
device access enables
mobile decision makers
Disc
Publishing
Virtual
Publishing
Future Opportunity
Customer
order
$
Spiritual & Mega Church Market
Customer Profile: Broadcast ministry reaching millions worldwide with rich media
sermons, lessons and inspirational
stories
Meet global demand
Minimize inventory costs
Immediate turn on new content
High quality, professional product
Sync delivery of pastor’s weekly message
with educational material
Delivery to a variety of devices
Provide superior experience regardless of
bandwidth
Flexible monetization and
policy strategies
support a variety of content uses
Disc
Publishing
Virtual
Publishing
Future Opportunity
Customer order
$
Key Takeaways
Corporate Overview
Recovery Progress in 2010
Transformation: Virtual Publishing
2011 Outlook
Capital Structure Actions
Agenda
Outlook - 2011
Second year of
multi-year
transformation
process
Long-term outlook is
promising but 2011
results will be
affected by:
Absence of retail
order similarly
sized to one in
2010
Continued
investment in
virtual publishing
Financial guidance
Q1 2011
Revenue:
$19-21 million
EPS: $0.11- 0.15
Annual 2011
Revenue:
$80-85 million
EPS: $0.55- 0.65
Operating cash flows
expected to remain
robust
Virtual Publishing Actions
Internal Effort
Virtual publishing proof-of-concept
Technology development, market research
and business planning
Customer demo and beta testing in first
half of 2011
Launch late 2011
Exploring Options to Accelerate
Hired investment banker
Horizontal platform:
Technology building blocks to extend core
disc publishing business
Vertical markets:
Customers, sales channel
Planned Virtual Publishing Beta Product
Unified
Security on all
Content Types
Video
Documents
Audio
Images
Subscriber
Platforms
Microsoft Windows
Apple iOS
Android
Subscriber
Devices
Desktop PCs
Laptops
Phones
Tablets
Rimage Signal Virtual Publishing Platform
Publish once, view everywhere
Publisher controlled access
Targeted Workflows
Marketing content distribution
Mid-market video distribution
Spiritual & mega church market
Key Takeaways
Corporate Overview
Recovery Progress in 2010
Transformation: Responding to market trends and
customer feedback – Virtual Publishing
2011 Outlook
Capital Structure Actions
Agenda
Move to a more normalized capital structure
Maintain operating cash at comfortable levels to fund core disc publishing and organic
investment in virtual publishing
Invest cash in prudent acquisitions that will accelerate revenue and income growth
from virtual publishing
Provide a meaningful dividend return to shareholders
Declared regular quarterly dividend of $0.10/share
Payable April 15 to shareholders of record as of March 31
Dividend sustainable at forecasted rates of cash flow
Leaves ample cash for business investment
Opportunistic share buybacks under existing repurchase authorization – 305k shares
remaining
Engaged investment banker to identify opportunities to accelerate our virtual publishing
efforts
Capital Allocation
Objectives
Actions
