In terms of potentially harmonious acquisition targets, on paper they could look at a variety of content delivery related technologies, including advanced compression/super fast transmission schemes (since Rimage's customers are already using the equipment for content delivery on optical media, a move into web based delivery makes perfect sense).

However, as always, there is much more to it than just a cool technology at the right price. An array of challenges face RIMG in integrating another technology, including:

1) Weak channel
The bulk of Rimage's channel are dealers that sell disc burners and blank media, which is not exactly a high-tech business. Selling an esoteric software technology for beefing up web based file delivery may require a very different partner. So the current channel may have to be scrapped and rebuilt, which takes time and resources. The more sophisticated partners RIMG has in Medical and other verticals may be a target but it's not an easy trick to find a new widget to plug into the same integrated solutions. (i.e. what does a PACS vendor want from Rimage after it has saturated the market with disc making widgets)?

2) Conservative culture
RIMG does not have a culture of innovation. Bernie quite effectively saw to it that anyone with big ideas was driven from the company in order to maintain the status quo, which was running the business like a commodity manufacturing company. Creating a culture of innovation will take a lot of new blood, which again takes time and resources to put in place.

3) Reputation
Rimage has a deservedly poor reputation among many customers who found 'Chevy' Service & Support provided for a 'Mercedes Benz' level price. Not many people outside the specific departments where their gear is used even know the name Rimage, and the people that do know it have poor opinion of the company behind it. This doesn't get fixed overnight.

This is just the tip of the iceberg in terms of challenges facing RIMG, and the latest earnings show hardware sales are falling off quite quickly as the old applications for their technology die away. They don't have a very long runway to get something new off the ground...