A couple of weeks ago, Rand Worldwide reported results for its fiscal fourth quarter and for the year ended June 30, 2012. FQ4 revenue was $22.6 million, down 3% from last year, with net income of $5.3 million. For the year, revenue was $89.4 million, essentially flat when compared to the $89.2 million reported for fiscal year 2011. Profitability is way up, however, as Rand reported net income of $8.4 million for fiscal 2012, versus $1.8 million a year ago. The revenue breakdown was almost exactly the same in 2011 and 2012, with 55% of revenue from products, 23% from services and 21% from commissions.

CEO Marc Dulude told investors that the Q4 results were “good from a bottom line perspective”, as the company had a $4 million benefit from a prior period loss. The overall gross margin was up 0.5%, ahead of plan as product margins were strong at 36%. Results for the year, Mr. Dulude told investors, reflect “continuous profitability” even though management remains “disappointed that revenue was below plan” as a result of turnover in the sales force in Q3 and Q3. He reports that Rand has hired sales resources at an “aggressive pace” and has  plans in place to rapidly develop this sales force, as it typically takes 8-12 months for newly hired reps to become productive. Even so, Mr. Dulude says that it will still take 2-3 quarters.

Rand is an Autodesk reseller, and is often seen as a barometer of what Autodesk will shortly report. Mr. Dulude said that 52% of Autodesk-related sales were from suites; 48% were for standalone products; almost 2/3 were for new seats, 1/3 upgrade or cross-grade. AEC  represented 56% and manufacturing, 44%, of Autodesk-related sales. When looking at Rand’s total picture, AEC was 42%, and manufacturing, 33%, of total sales.

Sales of enterprise apps, not related to Autodesk, are growing more rapidly for Rand, led by its archiving products developed on top of the Autonomy platform. Mr. Dulude says these results are “exhilarating — we believe we are on the right track and believe these revenues will grow disproportionately and outside the traditional CAD/CAM/PLM area”.

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