Rand Worldwide Announces First Quarter Results for Fiscal Year 2015

November 14, 2014 | Baltimore, Md

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 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.”

Forward-looking Statements

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.

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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 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
Any and all trademarks making reference to or related to Rand Worldwide, IMAGINiT Technologies, ASCENT, IMAGINiT, Clarity or ProductivityNOW 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.