Rimage Corp. (NASDAQ:RIMG) shares have dropped by more than 10 percent today after the company lowered its forecast for the fourth quarter due to higher than expected expenses from its video production company Qumu.
The company said that it now expects fourth quarter revenue of around $22 million, lowered from its previous range of $24 million to $26 million. The company had previous said that revenue from its Qumu business would bring in $4 million to $5 million but that it now expects the company to bring in $2 million.
Rimage stated that it expects to report a loss of between 15 cents per share and 17 cents per share during the quarter, wider than its previously expected loss of 1 to 2 cents per share. Adjusted loss for the quarter its expected to total 12 cents to 14 cents per share.
For the full fiscal year the company expects earnings of 28 cents to 30 cents per share on around $84 million in revenue. It had previously estimates earnings of 42 cents to 45 cents per share on revenue of $86 million to $88 million.
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