Rand Worldwide, Inc. announces its financial results for the quarter ended March 31, 2015.
For the three months ended March 31, 2015, Rand Worldwide, Inc. reported total revenues of $23,474,000 and operating income of $3,677,000. The Company's overall gross margin percentage was 51.8% which was slightly lower than the same quarter in the prior year due to the revenue mix. Total selling, general and administrative expenses were 5.2% lower in the current quarter compared with the same period of the prior fiscal year as a result of decreased commission expense and reduced occupancy costs. As a result, the Company reported income from continuing operations of $1,857,000, or $0.06 per diluted share for the quarter ended March 31, 2015, compared with $2,756,000, or $0.05 per diluted share, for the quarter ended March 31, 2014.
For the nine months ended March 31, 2015, the Company reported total revenues of $66,671,000, and operating income of $5,614,000. Revenues for the same period in the prior fiscal year included a single large sale of $3.2 million, thus excluding this one-time large sale, revenues increased from the prior year by $3,065,000 or 4.8%. Total selling, general and administrative expenses were higher by 7.0% for the nine months ended March 31, 2015 compared with the same period of the prior fiscal year as a result of costs associated with the Company's tender offer which closed during the second fiscal quarter. When these expenses are excluded from the calculation, operating expenses decreased slightly over the comparable prior year period. As a result, the Company reported income from continuing operations of $3,225,000, or $0.07 per diluted share for the nine months ended March 31, 2015, compared with $5,034,000, or $0.09 per diluted share, for the same period of the prior fiscal year.
"We achieved another quarter of strong earnings which generated sufficient cash from operations to allow us to fund $1.5 million in prepayments against our term loan," commented John Kuta, chief financial officer of Rand Worldwide. "Excluding the one-time costs related to the November 2014 tender offer and the sale of our data archiving business, our revenues and earnings continued to grow, highlighting our position as a premier engineering and design solutions provider."
"As evidenced by our year to-date results, our businesses are doing well and our revenues and profits continue to grow," stated Lawrence Rychlak, president and chief executive officer at Rand Worldwide. "We continue to invest in the future growth of our Company as well as in preparation for the anticipated changes in the Autodesk marketplace. Due to the competitive advantages that our size and our breadth of sales and technical talent across North America provide for us, we are very well positioned to prosper as Autodesk moves through its business transformation over the next few years."
