A quick note on Rand Worldwide, which just released results for the quarter ended December 31.

Q2 revenue was $23 million, up 4% from a year ago and essentially flat with its fiscal first quarter. For the six months ended December 31, 2011, total revenues were $44 million, up 15% from a year ago, a sign that business is definitely slowing. One major positive: net income for the first six months was $1.4 million, a nice reversal of the nearly $1 million loss reported last year.

For the December quarter, product revenue was $12.8 million, up 18%; services revenue was flat at $5.3 million but commissions were down sharply, falling from $5.4 million a year ago to $4.4 million this quarter. Rand says that it labels as “commissions” its share of the money paid by customers to Autodesk under the subscription program as well as what non-accounting types would call commissions, the more traditional software resale. Rand’s 10Q says commission revenue declined year/year because a single large sale in the 2010 quarter was not repeated last quarter; because commissions decreased on government sales (I’m not sure if that’s because government sales were down or because the commission structure changed) and because a single large annual subscription renewal slipped into the current quarter of the current year.

CEO Marc Dulude said that the majority of the product revenue increase is due to the “growing popularity of the Autodesk Suite products” and sales of the company’s ASCENT courseware that result from “the continued development of global distribution channels for our courseware.”

Shareholders were clearly expecting something different, sending the share price down 10% in the day’s trading.

I’m still at SolidWorks World so will update this if warranted once I listen to the earnings call. Happy Valentine’s Day!

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