Good news for CD Burner company Roxio — Business is booming and the company is moving into the digital photo and video editing space. Good move — since I predict recordable DVDs will be as popular as recordable audio CDs by this time next year!

See the Businessweek article by Jane Black:

Roxio: Burning Its Way to Bigger Things?.

These days, it’s pretty rare for any company, let alone a high-tech outfit,
to raise its guidance for revenues and earnings per share. But that’s just
what Roxio (ROXI ), which makes popular CD-burning software, did on Feb. 25.
Thanks to its acquisition of Toronto software company MGI and brisk holiday
sales, revenues for fiscal 2002 (ending Mar. 30) are expected to total $142
million, up 5% from its original projection of $135 million. Earnings will
come in at 91 cents per share, up from 89 cents forecast earlier.

The fact that the digital-media sector is littered with failures makes
Roxio’s performance all the more impressive. The company, which went public
in May, 2001, has been profitable throughout its six-year history. And
analysts expect Roxio to keep growing. Its products, which include software
for CD and DVD burning, photo and video editing, and data recovery, dominate
some of the high-tech sector’s most explosive markets.

The number of CD burners will increase from 120 million in 2001 to 546
million in 2005, according to market research firm International Data Corp
(IDC). DVD burning is also expected to take off. In 2001, IDC reports just
2.4 million DVD burners were sold. By 2005, that number will be higher than
72 million, a compound annual growth rate of 135%. Those trends could
translate into big sales and even bigger profits for Roxio. With the stock
trading at around $15, as of Feb. 22, analysts say now could be a good time
to buy.