Rimage Adopts Name of Qumu Subsidiary
Edina-based Rimage Corporation announced Monday that it will change its name to Qumu Corporation, adopting the name of the company it acquired in October 2011.
Rimage, a multimedia content management and delivery solutions provider, purchased San Bruno, California-based enterprise video communications firm Qumu, Inc., in a deal valued at $52 million.
Prior to the acquisition, Rimage mainly provided on-demand CD, DVD, and Blu-ray Disc publishing systems, but the company said Monday that business trends are increasing the use of video for enterprise communication, which is the emphasis of its Qumu subsidiary.
Revenues for the company’s Qumu business during the first quarter of 2013, which ended March 31, totaled $4.3 million, up 216 percent from $1.4 million during the same period in 2012. Rimage expects revenue for its Qumu business to grow more than 50 percent in 2013.
Total company revenues for the first quarter were $19.5 million—unchanged from its sales during the same period in 2012. A 16 percent decrease in its disc publishing business was offset by the higher revenue in its Qumu business.
“Video is a catalyst for richer business communication,” CEO Sherman Black said in a statement. “We are focused on helping enterprises use video to get the most from their social business investments.”
The company said the name change will take effect in the third quarter of this year. Black added that the company’s disc publishing business would retain the Rimage brand name.