2013-02-14 14:31:58 -
FOR IMMEDIATE RELEASE
Rand Worldwide Reports Second Quarter Fiscal Year 2013 Results
- - -
Trend of Profitable Operations Continues
FRAMINGHAM, MA - February 14, 2013 - Rand Worldwide, Inc. (OTCBB: RWWI), a
global provider of technology solutions to organizations with engineering design
and information technology requirements, announces its financial results for the
three and six months ended December 31, 2012.
For the three months ended December 31, 2012, Rand Worldwide, Inc. reported
total revenues of $21.6 million as compared with $22.5 million in the same
quarter for the prior fiscal year. The Company's overall gross margin percentage
for the current quarter was 50.5%, up significantly from the 47.0% reported for
the quarter ended December 31, 2011. Total selling, general and administrative
expenses were $9.2 million, a 5% increase from the $8.8 million reported for the
same quarter for the prior fiscal year. As a result, the Company reported net
income of $496,000, or $0.01 per share per fully diluted share, compared to net
income of $1,039,000, or $0.02 per share, for the same period in the prior year.
For the six months ended December 31, 2012, the Company reported total revenues
of $43.2 million as compared with $44.4 million in the prior year. Year to date
net income was $1,072,000, or $0.02 per fully diluted share, as compared with
net income of $1,441,000, or $0.03 per share, reported for the same period in
the prior year.
"Our core business continues to produce high gross margin levels which should
result in some further improvement in profitability when we see the results of
the additional sales professionals that we have brought on board in the past few
quarters," said Lawrence Rychlak, president and chief financial officer at Rand
Worldwide. "In addition, we remain very confident about the prospects for our
archiving business, as sales levels have exceeded our expectations and the
pipeline of new opportunities continues to grow."
"We continue to stay focused on investing in our customer facing, technical
employees to ensure that our clients work with the most talented, technically
savvy and industry knowledgeable experts in the channel," added Marc Dulude,
chief executive officer at Rand Worldwide. "This investment has resulted in the
receipt of several specialization designations from Autodesk based on our
demonstrated expertise in the areas of PLM, Simulation, Consulting, Plant and
MEP Systems Engineering."
Forward-looking Statement
This press release contains forward-looking statements about the expectations,
beliefs, plans, intentions, and strategies of Rand Worldwide, Inc. There are a
number of important factors that could cause actual results to differ materially
from those anticipated by any forward-looking information. Statements that are
not historical in nature, including those that include the words "goal,"
"expect," "anticipate," "estimate," "should,"
"believe," "intend," and similar
expressions, are based on current expectations, estimates and projections about,
among other things, the industry and the markets in which Rand Worldwide
operates, and they are not guarantees of future performance. Whether actual
results will conform to expectations and predictions is subject to known and
unknown risks and uncertainties, including risks and uncertainties discussed in
this report; general economic, market, or business conditions; changes in
interest rates, and demand for our products and services; changes in our
competitive position or competitive actions by other companies; the ability to
manage growth; changes in laws or regulations or policies of federal and state
regulators and agencies; and other circumstances beyond our control.
Consequently, all of the forward-looking statements made in this document are
qualified by these cautionary statements, and there can be no assurance that the
actual results anticipated will be realized, or, if substantially realized, will
have the expected consequences on our business or operations.
(Tables Below)
Rand Worldwide, Inc.
Summary Consolidated Financial Data
Three Months Ended Six Months Ended
December 31, December 31,
2012 2011 2012 2011
-------------- ------------- ------------- ------------
Revenues-
Product sales $10,540,000 $12,771,000 $22,055,000 $26,046,000
Service revenue 5,505,000 5,255,000 10,878,000 10,059,000
Commission
revenue 5,536,000 4,447,000 10,249,000 8,311,000
-------------- ------------- ------------- ------------
Total
revenues 21,581,000 22,473,000 43,182,000 44,416,000
-------------- ------------- ------------- ------------
Cost of revenues-
Cost of product
sales 6,858,000 8,703,000 14,188,000 18,003,000
Cost of service
revenue 3,816,000 3,198,000 7,510,000 6,332,000
-------------- ------------- ------------- ------------
Total cost
of revenues 10,674,000 11,901,000 21,698,000 24,335,000
-------------- ------------- ------------- ------------
Gross margin $10,907,000 $10,572,000 $21,484,000 $20,081,000
Operating income 1,135,000 1,343,000 2,080,000 1,938,000
Net income 496,000 1,039,000 1,072,000 1,441,000
Earnings per share:
Basic $ 0.01 $ 0.02 $ 0.02 $ 0.03
-------------- ------------- ------------- ------------
Diluted $ 0.01 $ 0.02 $ 0.02 $
0.03
-------------- ------------- ------------- ------------
Weighted average
common shares
outstanding:
Basic 53,990,589 52,223,307 53,906,012 52,072,435
-------------- ------------- ------------- ------------
Diluted 55,040,285 55,694,749 54,955,708 55,563,059
-------------- ------------- ------------- ------------
December 31, June 30,
2012 2012
-------------- -------------
Current assets $24,471,000 $23,323,000
Long term assets 29,619,000 27,887,000
-------------- -------------
Total assets $54,090,000 $51,210,000
-------------- -------------
Current liabilities $19,974,000 $19,750,000
Long term liabilities 1,575,000 614,000
Total stockholders'
equity 32,541,000 30,846,000
-------------- -------------
Total liabilities and
stockholders' equity $54,090,000 $51,210,000
-------------- -------------
About Rand Worldwide
Rand Worldwide is one of the world's leading professional services and
technology companies for the engineering community, targeting organizations in
the building, infrastructure, and manufacturing industries. The company advances
the way organizations design, develop, and manage building, infrastructure, and
manufacturing projects. Fortune 500 and Engineering News Record's Top 100
companies work with Rand Worldwide to gain a competitive advantage through
technology consulting, implementation, training, and support services. One of
the world's largest integrators of Autodesk software, the company also provides
data archiving based upon solutions from Autonomy, facilities management
software from ARCHIBUS, CAD and PLM courseware through their ASCENT division and
provides training and support solutions on Dassault Systèmes and PTC products.
For more information, visit rand.com
Rand Worldwide Company Contact
Chantale Marchand
Rand Worldwide
Phone +1 (508) 663-1411
cmarchand@rand.com
Any and all trademarks making reference to or related to Rand Worldwide,
IMAGINiT, ASCENT, ProductivityNOW, or Rand Secure Archive are registered and/or
owned by Rand Worldwide, Inc., and/or its subsidiaries, affiliates, and/or other
legal holders under the Rand Worldwide, Inc. name.
###
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Source: Rand Worldwide Inc. via Thomson Reuters ONE
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