Rand Worldwide, Inc., announces its financial results for the quarter ended September 30, 2014.
For the three months ended September 30, 2014, Rand Worldwide, Inc. reported total revenues of $20,782,000, an increase of $2,746,000, or 15.2%, compared to the same quarter in the prior fiscal year. The Company’s overall gross margin percentage increased slightly from 46.8% to 47.6% mainly due to a positive revenue mix. Total selling, general and administrative expenses increased by 11% for the three months ended September 30, 2014 over the same period in the prior year as a result of $937,000 of transaction costs related to the Company’s recently concluded tender offer. In total, the Company reported income from continuing operations of $605,000, or $0.01 per diluted share for the quarter ended September 30, 2014, compared with $108,000 or $0.00 per diluted share, for the same quarter of the prior year.
During the first quarter of fiscal year 2015, the Company divested of its Rand Secure Data division, therefore the summary consolidated financial information presented below reflects the results of the Secure Data division classified as discontinued operations for each fiscal period presented.
“The financial results for this quarter were unique as they included the divestiture of our Rand Secure Data division and the costs related to the tender offer,” commented John Kuta, chief financial officer of Rand Worldwide. “In spite of bearing $937,000 in one-time costs, our income from continuing operations was $605,000 and we generated $1.7 million of positive cash flow for the quarter, highlighting the strength of our core business.”
“This was yet another very positive quarter for the Company as we kept our business focus despite the ongoing disruptions of the divestiture, the tender offer and the resulting changes from these two events,” stated Lawrence Rychlak, president and chief executive officer at Rand Worldwide. “In what is usually our most challenging quarter, we saw significant year-over-year revenue growth, an increase in our overall margins and the reduction in our overall expenses, after factoring out the charges associated with the tender offer. With these events now behind us, we continue to be optimistic about our ability to deliver positive results in the future.”
To view an unabridged version of this press release, visit: http://rand.com/news-events/press-releases/2014/rand-ww-announces-first-quarter-results-for-fy15
