CIMdata PLM Industry Summary Online Archive
14 February 2011
Financial News
Rand Worldwide Reports Second Quarter Fiscal 2011 Earnings
Rand Worldwide, Inc. announced financial results for the three and six months ended December 31, 2010.
Reporting earnings for the first time under new ticker symbol RWWI, the Company reported total consolidated second quarter revenues of $21.7 million for the three months ending December 31, 2010 as compared with $11.4 million for the same period in the prior fiscal year. The prior year amounts reflect only the pre-merger revenues of Rand Worldwide. Revenues for the six months ended December 31, 2010 and 2009 were $38.5 million and $25 million, respectively. The overall gross margin percentage reported for the quarter was 50.5% which is significantly higher than the 42.8% reported last quarter. This increase is the result of a good revenue mix and a high proportion of commission revenues due to an increase in year-end subscription renewals.
For its second fiscal quarter, the Company realized net income of approximately $1.3 million, or $0.02 per share, compared with a loss of $(0.10) in the same period in the prior year. Year to date, the company recognized a net loss from continuing operations of $899,000, or loss of $(0.03) per share, compared with a loss of $3.2 million, or $(0.13) for the same period in the prior year.
“We are very pleased to see the realization of the expected benefits of the Avatech Solutions and Rand Worldwide merger positively impact this quarter’s results. Our strong sales this quarter, coupled with our lowered expense base resulting from our consolidation efforts, produced outstanding returns validating the reasons for putting these two great companies together,” commented Lawrence Rychlak, President and Chief Financial Officer of Rand Worldwide. “In line with previous operating history, the high volume of December subscription renewals significantly contributed to our positive results, but we also saw good revenue growth in our product sales and services business as well. The strong earnings, coupled with our combined credit facility, have significantly increased our liquidity and strengthened our balance sheet, nicely positioning us to take advantage of the continued economic recovery,” added Mr. Rychlak.
Company CEO Marc Dulude added, “I am very pleased with this quarter’s results and I am particularly encouraged to see that almost all of our business units, across all geographies, reported increased revenue this quarter. Our teams are intently focused on identifying and capitalizing on opportunities in our new, expanded market and the results are reflecting that commitment.” Mr. Dulude continued, “The fact that this growth is across multiple industries - architectural, engineering and civil, manufacturing, government and education – is indicative that companies and institutions are again investing in technology solutions and services to enable integration of these solutions into existing business processes, as well as training for their employees and tomorrow’s workforce.”
Conference Call Information
Rand Worldwide will hold a conference call to discuss its second quarter results at 11:00 am ET on February 14, 2011. The dial-in numbers for the conference call are 1 (800) 510-9834 (domestic) or 1 (617) 614-3669 (International), and enter the passcode (25205828). A live, listen-only Webcast of the conference call will be available to all investors in the Investor Relations section of the Company's Web site.
For the unabridged press release with tables click HERE.
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