Rimage 2Q profit falls 14 percent

MINNEAPOLIS --Rimage Corp., a maker of CD and DVD production and duplication equipment, said Wednesday its second-quarter profit fell 14 percent, as the company incurred charges related to its desktop line of products.

Quarterly earnings dropped to $2.9 million, or 28 cents per share, from $3.4 million, or 33 cents per share, in the prior-year period. Revenue rose to $25.5 million from $25.3 million.

Rimage said it recorded $500,000 in pretax impairment and inventory write-down charges during the recent quarter, citing slower sales of its low-end 360i product line for desktops. The weakness in that category partly reflects Rimage's focus on its Producer line for high-volume production.

The company's selling, general and administrative costs rose to $6.3 million from $5 million, helping overall operating expenses grow to $7.7 million from $6.7 million.

Shares dropped 13 percent to $27 in after-hours trading after closing the regular session at $31.02.