CIMdata PLM Industry Summary Online Archive
10 August 2004
Financial News
RAND Worldwide Announces Second Quarter 2004 Results
Rand A Technology Corporation operating as RAND Worldwide® announced its financial results for the second quarter ended June 30, 2004.
Revenue for the second quarter ended June 30, 2004 was $34.9 million, compared with $40.2 million the previous quarter and $42.3 million during the period ended June 30, 2003. RAND Worldwide's gross profit margin during the second quarter was 60.2%, compared with 54.5% for the first quarter ended March 31, 2004 and 50.7% for the second quarter of 2003.
The Company's net income for the second quarter of 2004 was $4.6 million, compared with a (net loss) of ($7.4) million the previous quarter and a (net loss) of ($22.8) million for the second quarter of 2003. This is equivalent to net earnings of $0.28 per Common Share for the second quarter, compared with a (net loss) of ($0.44) per Common Share for the quarter ended March 31, 2004 and a (net loss) of ($1.38) per Common Share for the second quarter of 2003.
The Company had cash and short-term investments totaling $6.9 million as at June 30, 2004, compared with $10.6 million as at March 31, 2004 and $14.2 million as at December 31, 2003. The Company's short-term debt was reduced to nil from the $9.0 million outstanding at both March 31, 2004 and December 31, 2003. Profitability in the second quarter was positively impacted by completion of the sale of certain assets to RAND North America.
The Company recorded a (loss) in operating earnings during the second quarter ended June 30, 2004, before interest, taxes, depreciation and amortization, restructuring and asset writedowns, equity losses, net of dilution gains and losses and the results of discontinued operations (EBITDA 1 ), of ($3.8) million, compared with a (loss) of ($3.9) million the previous quarter and a (loss) of ($7.4) million during the second quarter ended June 30, 2003.
(Net loss) for the six month period ended June 30, 2004 was ($2.7) million or ($0.16) per Common Share, compared to a (net loss) of ($32.5) million or ($1.96) per Common Share for the six month period ended June 30, 2003.
"I am pleased that we were able to complete the RAND North America transaction with Dassault Systèmes at the end of the second quarter (see RAND Worldwide press release dated July 5, 2004), a transaction that has strengthened RAND's balance sheet," said Frank Baldesarra, President and Chief Executive Officer of RAND Worldwide. Mr. Baldesarra continued, "I am also very pleased to see continuing improvement in a number of our businesses and we will continue to execute our business plan to achieve profitability in all regions."
Mr. Baldesarra added, "I am delighted to announce that Brian Semkiw, presently the Chief Executive Officer of RAND North America, a company owned 60% by Dassault Systèmes and 40% by RAND Worldwide, and formerly the Chief Executive Officer and director of RAND Worldwide prior to the RAND North America transaction, has been appointed Chairman of the Board of RAND Worldwide by the Board of Directors."
Kriss W. Bush, RAND Worldwide's new Chief Financial Officer, said, "RAND will continue to focus on controlling costs, initiating process improvements in all our businesses and delivering best practices in the areas of financial controls and corporate governance.
With the RAND North America transaction completed, we have reduced our overall cost structure. We believe that RAND's diverse business model and outstanding global business partners provide a great foundation for our global business."
RAND Worldwide employs more than 700 people in over 75 sales and client service centers in 26 countries. The Company's corporate head office in Mississauga, Ontario, Canada can be reached at 905-625-2000 or through the Internet at http://www.rand.com
The contents of this News Release has been reviewed and approved by the Audit Committee and the Board of Directors.
1 EBITDA is not a recognized measure under Canadian generally accepted accounting principles (GAAP). Management believes that, in addition to net income (loss), EBITDA is a useful supplemental measure as it is used by certain investors as one measure of the Company's financial performance. Investors should be cautioned, however, that EBITDA should not be construed as an alternative to net income (loss) determined in accordance with GAAP as an indicator of the Company's performance or to cash flows from operating, investing and financing activities as a measure of liquidity and cash flows. The Company's method of calculating EBITDA may differ from other companies and, accordingly, EBITDA may not be comparable to measures used by other companies.
This news release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this news release. Actual results could differ materially from those anticipated in these statements, due to risks and uncertainties that affect the Company's business and operations. Reference should be made to the Company's Annual Information Form and other continuous disclosure documents filed from time to time with Canadian securities regulatory authorities, for a detailed description of such risks and uncertainties.
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