Business Segment Information / Major Customers

12 Months Ended

Dec. 31, 2011

Business Segment Information / Major Customers [Abstract]

Business Segment Information / Major Customers

15) Business Segment Information / Major Customers

Management's historical assessments of reportable operating segments under ASC 280, "Segment Reporting," involved a review of the Company's digital disc publishing platform, consisting of high-performance disc publishing systems that are used by businesses to publish recordable customized digital content on physical optical discs on an on-demand basis. Given the inherent commonality of the economic characteristics associated with each of the product lines within the Company's disc publishing product platform, e.g., similar design, functionality, production process, customer type and methods of distribution, Management identified one reportable operating segment.

Rimage continued to invest in the development of an online publishing solution to provide its customers secure, push-based delivery of digital content. Rimage's online publishing solution makes content available globally through a cloud based SaaS platform. Products being developed moved into proof of concept testing during 2011 with several of the Company's disc publishing customers. Rimage expects to launch its online publishing solution in the second quarter of 2012.

In October 2011, Rimage acquired Qumu, a leading provider of enterprise video communications solutions. Qumu products are deployed as an end-to-end solution with an intuitive and rich user-experience to author, manage and distribute live and on-demand video content while integrating video with other media over corporate networks behind and beyond the secure firewall. Qumu deployments are in the form of software, software on a server appliance or a managed service. Revenues generated from the Company's new enterprise communications product line in 2011 after the date of the acquisition totaled $1.8 million, or 2% of consolidated annual revenues.

Management views the addition of its online publishing solution and Qumu's enterprise video communications platform as complementary additions to its disc publishing product platform, with each of the three platforms utilizing different technologies to enable different methods of reliable, secure delivery of digital content to businesses worldwide.

Management continues to integrate Qumu's operations as well as its online publishing solution with the rest of the Company, and is in the process of re-evaluating the manner in which it organizes its operations for the purposes of making operating decisions and the management reporting requirements necessary to assist in assessing performance of such operations. As part of this, Management expects to complete its assessment of reportable operating segments under ASC 280 during the first quarter of 2012.

The following represents sales amounts and related accounts receivable balances generated by the Company's unaffiliated customers that provided more than 10% of consolidated revenues (in thousands):

Revenues	Years ended December 31,
	2011		2010		2009
Customer A	$	13,667	$	15,577	$	9,425
Customer B		*		*	$	14,972
Customer C		*		*	$	8,673

Accounts Receivable	December 31,
	2011		2010		2009
Customer A	$	430	$	2,045	$	438
Customer B		*		*	$	2,047
Customer C		*		*	$	1,486

* Sales to customer did not represent more than 10% of consolidated revenues.

The Company's revenues from each of its principal geographic regions are presented based on customer location as follows (in thousands):

	Years Ended December 31,
	2011		2010		2009
North America	$	51,706	$	57,301	$	48,956
Europe		22,083		23,050		26,509
Other (Asia and Latin America)		9,845		8,380		7,762
Total	$	83,634	$	88,731	$	83,227

Net property and equipment of the Company were located as follows (in thousands):

	December 31,
	2011		2010
North America	$	5,664	$	7,008
Germany		453		475
Asia		60		45
	$	6,177	$	7,528

The Company's revenues from each of its principal products and services were as follows (in thousands):

	Years ended December 31,
	2011				2010				2009
		$	%			$	%			$	%
Disc publishing
Disc publishing equipment:
Producer	$	15,788	19	%	$	15,339	17	%	$	17,516	21	%
Professional		11,939	14	%		21,928	25	%		10,352	12	%
Desktop		2,697	3	%		3,575	4	%		5,089	6	%
Total disc publishing equipment		30,424	36	%		40,842	46	%		32,957	40	%
Recurring:
Consumables and parts		40,038	48	%		37,904	43	%		39,328	47	%
Service		11,412	14	%		9,985	11	%		10,942	13	%
Total recurring		51,450	62	%		47,889	54	%		50,270	60	%
Total disc publishing		81,874	98	%		88,731	100	%		83,227	100	%
Enterprise video communications
Software licenses and appliances		693	1	%		—				—
Service		1,067	1	%		—				—
Total enterprise video communication		1,760	2	%		—				—
Total	$	83,634	100	%	$	88,731	100	%	$	83,227	100	%