Rand reporting total consolidated FQ2 revenue of $21.7 million, nearly double the $11.4 million reported for Rand a year ago, and more than double $8 million reported by Avatech last year — but up around 15% had the entities been merged a year earlier.
I am not positive that the category definitions completely line up, but here is the revenue breakdown for Rand today, Rand a year ago and Avatech a year ago:
• Rand reported that product sales were $11 million for the period just ended, compared to $5 million for Rand alone last year; Avatech reported product sales of $3 million — so it would appear that product revenue is up a very healthy 35%.
• Rand reported that services revenue was $5 million for the period just ended, compared to $4 million for Rand alone last year; Avatech reported product sales of $2 million , so services revenue appears to have dropped slightly.
• Rand reported that commission revenue was $5 million for the period just ended, up from $2 million for Rand alone last year; Avatech reported $2 million in commissions, so this also appears to be healthy growth. Nothing specific was said during the earnings call, but subscription renewals were ahead of typical this last quarter, aided by one very large order.
Rand says it saw growth across its Autodesk, Dassault Systemes and PTC lines — and is seeing wins crossing OEM lines. CEO Mark Dulude mentioned that John Deere’s designation of Avatech as a “Partner-Level Supplier” for PTC solutions likely influenced Deere’s selection of Rand as its Autodesk reseller, too. This is an interesting comment — and the first time I’ve heard a reseller mention such cross-platform traction. The comment also highlights the inescapable fact that almost all end-users rely on many products in their development process.
Lawrence Rychlak, formerly of Avatech and now Rand’s President and Chief Financial Officer said in the earnings press release, "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.”
Mr. 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 … 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."
No comments were made regarding outlook.
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