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Rand Worldwide Reports Third Quarter Fiscal Year 2013 Results(Thomson Reuters ONE Via Acquire Media NewsEdge) FOR IMMEDIATE RELEASE Rand Worldwide Reports Third Quarter Fiscal Year 2013 Results - - - Trend of Profitable Operations Continues FRAMINGHAM, MA - May 15, 2013 - 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 three and nine months ended March 31, 2013. For the three months ended March 31, 2013, Rand Worldwide, Inc. reported total revenues of $26.1 million as compared with $22.4 million in the same quarter for the prior fiscal year. The Company's overall gross margin percentage for the current quarter was 52.1%, an increase over the 50.6% that was reported for the quarter ended March 31, 2012 as a result of higher revenues and a more favorable revenue mix. Total selling, general and administrative expenses were $10.2 million, a 12% increase from the $9.1 million reported for the same quarter for the prior fiscal year, due primarily to additions to the Company's sales force and higher sales commissions as a result of the higher revenues and gross margin for the period. As a result, the Company reported net income of $1,775,000, or $0.03 per fully diluted share, compared to net income of $1,639,000, or $0.03 per share, for the same period in the prior year. For the nine months ended March 31, 2013, the Company reported total revenues of $69.3 million as compared to $66.8 million in the prior year. Year to date net income was $2,847,000, or $0.05 per fully diluted share, as compared with net income of $3,080,000, or $0.05 per share, reported for the same period in the prior year. "Our third fiscal quarter is typically our strongest quarter in terms of our financial results and this year was no exception," commented Larry Rychlak, president and chief financial officer at Rand Worldwide. "We experienced good revenue levels that combined with a positive revenue mix of higher commission revenues, primarily from subscription renewals, to produce a very healthy bottom line and strong cash flows for quarter." "We are very pleased with our results this quarter," added Rand Worldwide chief executive officer, Marc Dulude. "We saw strong growth results across both product and services sales, with product sales growing 18% year over year, services sales growing 20% in the same period and total revenues growing 17%. We believe that this increase is attributable to three reasons: we continued to grow our sales staff across all groups, improved productivity from our sales and services professionals, and continued adoption of the Autodesk product suites by our clients." Forward-looking Statement 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. (Tables Below) Rand Worldwide, Inc. Summary Consolidated Financial Data Three Months Ended March Nine Months Ended March 31, 31, 2013 2012 2013 2012 ------------- ------------- ------------- ------------ Revenues- Product sales $13,353,000 $11,324,000 $35,408,000 $37,370,000 Service revenue 6,255,000 5,206,000 17,134,000 15,265,000 Commission revenue 6,537,000 5,821,000 16,786,000 14,132,000 ------------- ------------- ------------- ------------ Total revenues 26,145,000 22,351,000 69,328,000 66,767,000 ------------- ------------- ------------- ------------ Cost of revenues- Cost of product sales 8,531,000 7,596,000 22,721,000 25,599,000 Cost of service revenue 3,996,000 3,444,000 11,506,000 9,776,000 ------------- ------------- ------------- ------------ Total cost of revenues 12,527,000 11,040,000 34,227,000 35,375,000 ------------- ------------- ------------- ------------ Gross margin $13,618,000 $11,311,000 $35,101,000 $31,392,000 Operating income 2,907,000 1,788,000 4,987,000 3,726,000 Net income 1,775,000 1,639,000 2,847,000 3,080,000 Earnings per share: Basic $ 0.03 $ 0.03 $ 0.05 $ 0.06 ------------- ------------- ------------- ------------ Diluted $ 0.03 $ 0.03 $ 0.05 $ 0.05 ------------- ------------- ------------- ------------ Weighted average common shares outstanding: Basic 53,990,589 52,546,391 53,935,863 52,331,996 ------------- ------------- ------------- ------------ Diluted 56,489,059 54,710,936 56,349,932 54,545,939 ------------- ------------- ------------- ------------ March 31, June 30, 2013 2012 ------------- ------------- Current assets $26,416,000 $23,323,000 Long term assets 28,431,000 27,887,000 ------------- ------------- Total assets $54,847,000 $51,210,000 ------------- ------------- Current liabilities $18,935,000 $19,750,000 Long term liabilities 1,541,000 614,000 Total stockholders' equity 34,371,000 30,846,000 ------------- ------------- Total liabilities and stockholders' equity $54,847,000 $51,210,000 ------------- ------------- Three months ended 3/31/2013 3/31/2012 ----------- ---------- AEC and Manufacturing Sales as a % of Total Sales: AEC 46% 45% Manufacturing 30% 31% Suites % of Product and Subscription Revenue 55% 49% Top Autodesk products by % of product & subscription sales Building Design Suite 22% 8% Product Design Suite 21% 20% AutoCAD 15% 17% Civil 3D 8% 10% Infrastructure Design Suite 5% 4% 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 data archiving based upon solutions from Autonomy, 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. Rand Worldwide Company Contact Chantale Marchand Rand Worldwide Phone +1 (508) 663-1411 [email protected] Any and all trademarks making reference to or related to Rand Worldwide, IMAGINiT Technologies, ASCENT, Rand Secure Archive, or IMAGINiT Clarity, are registered and/or owned by Rand Worldwide, Inc., and/or its subsidiaries, affiliates, and/or other legal holders. ### This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Rand Worldwide Inc. via Thomson Reuters ONE [HUG#1701860] |