Much of the increase is due to last year’s merger with Avatech Solutions, but sales are picking up in all categories.
CAD and PLM product and services vendor Rand Worldwide, Inc. (OTCBB: RWWI), reported substantial increases in revenue and profit for the most recent fiscal quarter. The totals and percentages are unusually large because of a reverse merger with Avatech Solutions in August 2010.
For the third quarter of 2011, ending March 31, 2011, total revenues was $27.4 million, up 103% from a year earlier ($13.5 million). The prior year amount reflects only the pre-merger revenues of Rand Worldwide.
In addition to the merger, Rand attributes the large revenue increase to a substantial pickup in sales from the company’s IMAGINiT division, which handles Autodesk software and services.
Product sales revenue in 3Q11 was $16.3 million, up from $6.6 million a year earlier. Rand is a major distributor for products from Autodesk, PTC, Autonomy, and Archibus, as well as CAD and PLM courseware through their ASCENT division.
Service revenue in 3Q11 was $5.5 million, up from $4.2 million a year earlier. Rand provides support and training for products from the companies listed above, and also for products from Dassault Systèmes and PTC.
Commission revenue in the quarter was $5.6 million, up from $2.7 million a year earlier.
Net income for the quarter was approximately $2.1 million, compared with a loss of $620,000 in 3Q10.
Rand reports that its integration efforts from the merger are “largely complete.”
Cash on hand March 31, 2011 was $0.42 continuing a positive trend; CPS was $0.35 September 30, 2010 and $0.20 a year ago.