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| 8-K - FORM 8-K DATED NOVEMBER 2, 2011 - Qumu Corp | rimage115153_8k.htm |
Rimage Corporation
NASDAQ: RIMG
November 2011
2
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 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, 2010, in our other filings with the SEC and in our press release issued
October 10, 2011 announcing the
Qumu acquisition. These reports and the
press release are available on our website at www.rimagecorp.com.
Forward-Looking Statements
3
About Rimage Corporation
Qumu is a cornerstone acquisition that accelerates
Rimage’s transition into a growth company
4
Investment Considerations
Qumu revenue growth in excess of 45% per year over past
three years. On track to deliver $15 million in revenue in 2011
Growth opportunity in $2 billion enterprise video
communications market
Recurring revenue stream from disc publishing generating cash
Recent 70% increase in dividend to 6% dividend yield
Cash and global infrastructure will accelerate Qumu growth
Positioned for accelerated growth and growing shareholder
value
5
Comprehensive Platform for Today &
Tomorrow
Physical media based
delivery
Secure push-based
content delivery
Live and on-demand
streaming video
Rimage product platforms now cover all major distribution technologies and device types
6
Rimage Disc Publishing
On track to deliver $80-$85M in revenue in 2011
Core value: custom, digital content delivery
Enables businesses to:
Publish custom content – 1 to 1, 1 to few
Push content to their users
Integrate end-to-end workflows
Monetize digital assets
Provide value-added services
Protect sensitive information
Robust product line built on mature technologies
Platform provides access to a broad range of vertical markets
>10,000 customer installed base
Personalized
Secure
High capacity
Permanent
Retail
Financial
Services
Video
Production
Medical
Surveillance
Law
Enforcement
Professional
Services
Manufacturing
Sports Video
Education
7
Changing Content Distribution Landscape
Tablets, smartphones and the internet have greatly changed the way people access content
Over 100 million tablets will be shipped in 2013
Device Shipments by Form Factor, Millions
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Changing Content Distribution Landscape
Video is being used more and more as a communication tool
Source: Cisco VNI Mobile, 2011
Global IP Traffic
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About Qumu
A leading provider of enterprise video communication solutions
End to end solution from creation, management, publishing and
distribution
100 of the Global 1000 customers
Banks, tech companies, telecom providers, universities &
government agencies
Premier distribution partners: Sony and AT&T
$2 billion estimated total available market
Solid execution. Growing in excess of
45% per year the last three years
$15M revenue forecast for 2011
10
Qumu Use Cases
PCs
Signage
Mobile
Financial results
Sales training
Technical training
New product launch
Compliance
HR
Crisis Communications
Customer Outreach
Product documentation
Marketing programs
Customer social networking
Talent scouting
Recruiting
Project management
Studio Webcast
Training
Video Conference
Employee Generated
Live Video Feeds
1.
CEO broadcast
2.
Employee Social Network
3.
Mobile Video Acquisition
Qumu provides unique capabilities to enterprises
through its end to end platform
Qumu enables a video fabric within and external to the
enterprise
Video can become a part of all enterprise systems and
an everyday experience for employees, partners, and
customers
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Qumu End-to-End Solution
Capture Studio
Video Control Center
Dissemination
High Quality Capture
studio for any event
Captures Video alongside
PPT presentations
Ability to record
screenshots and share
desktops
Social Media Elements
Supporting Multiple
Cameras & VGA sources
Simple Video Portal for the
Enterprise to share video
Controls both LIVE & VOD
workflows
Easy to deploy and
integrate as a Sharepoint
video portal
Secure and enabling
Single-Sign-On
Delivers video over a wide-
range of networks such as
CISCO, Riverbed, Akamai,
BlueCoat and AT&T
Supports Windows and
Flash for Live and VOD
User Experience
Deliver video to the Mobile,
Desktop. Online Video
Portal and Digital Signage
Off the shelf solutions
Provide developers with an
SDK and Simulation
environment
Create a development
community to share
experiences
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Qumu Distribution
Internet Users
PUBLIC CDN
(Akamai, ATT, LimeLight)
WAN
Regional
Office
Branch
Office
Branch
Office
Branch
Office
Qumu Capture
Studio
Qumu Video
Net Edge
Camera
Qumu Video
Control Center
Enterprise Data Center / HQ
Federated CDN consisting of private and public CDNs
iCDNs: Akamai, AT&T, Limelight, MS Azure CDN
eCDNs: Cisco, Blue Coat, Riverbed, Qumu
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Secure content delivery platform
directly pushing documents and rich media content to
desktops and mobile devices, making content globally
accessible online or offline.
Virtual Publishing Initiative
Simple.
Secure.
Everywhere.
Currently in customer beta testing
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Push-based content
delivery
Transcoding optimized
for multiple device
playback
Cloud-based SaaS
platform
Single platform for
document, image, audio
and video files
Persistent security:
content encrypted
in-transit, at rest, and
during ‘playback’
SSL and AES-256 bit
encryption
Flexible policies: grant,
revoke, or modify access
to content after delivery
On-premise deployment
option
Optimized for PC, tablet
& mobile devices
Superior viewing
regardless of bandwidth
or connectivity
Extends existing
technology investments
Virtual Publishing Key Attributes
Simple
Secure
Everywhere
Integrates with ECM, DAM, CDN, eCommerce engines, enterprise portals,
and transcoding farms
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Powerful Combination
Ability to offer an expanded content distribution platform to thousands of
Rimage disc publishing customers
Ability to offer Qumu customers virtual publishing technology to securely
“push” content to users
Rimage’s net free cash flow, global footprint and infrastructure will enable
Qumu to expand into new markets quickly
Europe and Government expansion represent significant
opportunity
Optimization of expense structure
Acquisition will allow Rimage to increase revenue by an estimated 15% in
2012
16
Financial Results
Revenues
in millions
Cash
*Excludes Qumu transaction costs.
** At Y.E. 2011. Includes the effect of the
Qumu acquisition in October.
Profitable, cash-generating
business positioned for
accelerated growth and
growing shareholder value
$86 –
$88
$109
$91
$83
$89
2007
2008
2009
2010
2011E
From Operations
From Interest Income
EPS
$1.52
$0.97
$0.89
$0.80
$0.55 –
$0.58
$1.30
$0.79
$0.77
$0.77
$0.22
$0.18
$0.12
$0.03
2007
2008
2009
2010
2011E*
in millions
$72 -
$74
$94.2
$95.4
$110.1
$116.8
2007
2008
2009
2010
2011E**
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Investment Considerations
Qumu revenue growth in excess of 45% per year over past
three years. On track to deliver $15 million in revenue in 2011
Growth opportunity in $2 billion enterprise video
communications market
Recurring revenue stream from disc publishing generating cash
Recent 70% increase in dividend to 6% dividend yield
Cash and global infrastructure will accelerate Qumu growth
Positioned for accelerated growth and growing shareholder
value
18
APPENDIX
Qumu Use Case
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Qumu Use Case: Executive Webcast
The Scene:
Bigco has just been the victim of a product contamination event. Some customers were sickened by Bigco’s product and one may die. Bigco’s CEO wants to get all the firm’s 50,000 employees ‘on the same page’, so that a consistent message is communicated to the firm’s stakeholders. He tells the CIO to arrange an internal webcast later that day.
1 – Schedule
Julie, Bigco’s webcast
administrator, creates a live
program entry in Qumu’s Video
Control Center. She designates
the audience as “Everyone” and
uploads a PowerPoint
of talking
points plus a video clip of the news
reports on the product
contamination. Julie schedules
the live broadcast for 2pm
Central US.
2 – Notify & Pre-position
Qumu’s Video Control Center
(VCC) automatically sends email
and RSS notifications to Bigco’s
employees and generates for a
each a URL that will direct them to
the best streaming point. At
the
same time, the VCC begins to
push Powerpoint and video clip to
Bigco’s collection of BlueCoat,
Cisco, and Qumu edge devices.
Content is also pushed to secure
Akamai CDN for home workers.
A separate notification is sent to
Bigco’s trusted suppliers who are
invited to attend the event. These
people are registered securely due
to the Qumu VCC’s unique ability
to have “composite domains” for
non-LDAP/AD viewers.
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Qumu Use Case: Executive Webcast – cont.
3 – The Flash Mob
About ten minutes before the 2pm
event start, employees hit the URL
and begin arriving in the Qumu
VCC “Waiting Room” page that is
branded with Bigco’s look and feel.
20,000
employees hit the page in
10 minutes, but Qumu’s VCC
which is fully clusterable, easily
handles the load.
4 – Event Start Up
Qumu’s VCC automatically starts
a cluster of video encoders in
Bigco’s corporate studio. Two
encoders are used in case of a
problem.
5 – The Live Event
Bigco’s CEO begins to talk to
describe the situation. As he
does, the event moderator pushes
slides relevant to the points he is
making. All 20,000 employees
see
the same thing at the same
time on their browser or mobile
device. (The other 30,000
employees are in Europe and Asia
on different time zones. The will
view the re-broadcast.)
6 – A Problem
Julie, the broadcast administrator
is monitoring the event from
another Bigco office. The VCC
reports that one of the encoders
has failed. The Qumu VCC has
automatic failover. Julie
notes the
issue, and the event continues
without pause..
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Qumu Use Case: Executive Webcast – cont.
7 – Interactivity
After 5 minutes, the CEO opens
the floor to questions and is joined
by the CFO. During his talk,
employees have been submitting
queries via the Qumu video
players built in Q&A
function. The
moderator has been previewing
the questions and marking them
for the CEO or CFO to answer.
The CEO and CFO have iPads
and are running the Presenter
page from the VCC, they read the
questions and
respond.
8 – Polling
Bigco’s SVP of Communications
asked the moderator to poll the
employee’s on the effectiveness of
this response. A poll question
pops up in 20,000 players, the
answers are
aggregated and a
graphic result is pushed back to
the audience.
9 –Event Concludes
Bigco’s CEO concludes the event
and encourages employees to
comment on the Events program
page in Bigco’s video portal (a
branded version of Qumu’s Social
Video Portal).
10 – Post Event Survey
The Event stream ends and each
view is presented with a post
event survey created by Corporate
Communications. There are 6
questions which are aggregated
by the Qumu VCC and exported
to
Excel for further analysis.
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Qumu Use Case: Executive Webcast – cont.
11 – The Re-broadcasts
During the live event, the entire
communications exchange (video,
Q&A, polling, etc.) is being
archived. Julie, the Webcast
moderator, schedules two re-
broadcasts: one for Bigco’s
east
Asia operations and one for its
European operations. The Qumu
VCC distributes re-broadcast
alerts to the appropriate
geographies, runs the events in
their entirety and collects statistics
on viewership.
12 – On Demand
The event is then automatically
added to Bigco’s On-Demand
programs in the Corporate Video
Portal. Bigco’s policy is to keep
these events for 2 weeks before
removing them,
which the Qumu
VCC does automatically.
13 –Analytics
Corporate Communications runs a series of reports on the event from
the Qumu VCC report engine. They conclude that the event reached
75% of Bigco’s employees with a 99% completion rate. Post
event
survey’s show that employees were very satisfied with the speed,
quality, and interactivity of the communication.
The Scene + 90 Days:
Corporate executives and managers, so impressed with the reliability and reach of the Qumu Live capability, adopt the
technology in droves. Due to Qumu’s unique ability to originate webcasts
from any office equipped with a VTC or Qumu
Capture Studio, Bigco is now doing 4-5 live events per day targeting not just employees, but partners, and customers.
Video use skyrockets!
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