It was bundled with about 24 million CD recorders in 2000 alone, accounting for about 70 percent of the entire CD recorder market that year. Analysts say there are expected to be 100 million CD recorders in use worldwide by the end of this year and 400 million by 2004. Roxio is now hoping to go mainstream with a huge magazine promotion in coming weeks, according to Chris Gorog, chief executive officer of Milpitas, Calif.-based Roxio. We're an anomaly in Silicon Valley. But nobody knows who we are.
Analysts agree that consumer awareness is one of the challenges for the company.
In fiscal 2001 it had a pro forma, pretax margin of over 20 percent. About 60 percent of Roxio's business comes from its partnerships with major PC makers with the remaining 40 percent derived from retail sales. He said a slowdown in PC sales will not severely hurt the company due to increasing recordable CD drive adoption. Roxio's business has grown as the blank compact disk market has exploded, and as people have increasingly created their own CDs. Blank compact disk production has soared, with about 4 billion blank CDs shipped in 2000.