FOR IMMEDIATE RELEASE

Rand Worldwide Reports Second Quarter Fiscal Year 2014 Results
- - -
Highest Revenue Levels in Five Years

FRAMINGHAM, MA - February 14, 2014 - 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 six months ended December 31, 2013.  

For the three months ended December 31, 2013, Rand Worldwide, Inc. reported total revenues of $24.5 million as compared with $20.1 million in the same quarter for the prior fiscal year. The Company's overall gross margin percentage for the current quarter was 49.3%, down from the 52.1% reported for the quarter ended December 31, 2012 as a result of a single larger sale that yielded a lower margin percentage. Total selling, general and administrative expenses as a percentage of total revenues were 36.3% for the current quarter, down significantly from 42.8% in the same quarter for the prior fiscal year.  As a result, the Company reported net income from continuing operations of $1,559,000, or $0.03 per share per fully diluted share, compared to $716,000, or $0.01 per share, for the same period in the prior year.  

For the six months ended December 31, 2013, the Company reported total revenues of $43.0 million as compared with $39.5 million in the prior year.  Year to date net income from continuing operations was $1,283,000, or $0.02 per fully diluted share, as compared with net income of $1,090,000, or $0.02 per share, reported for the same period in the prior year.

"This was an outstanding quarter for us aided by a number of larger deals, including one particularly noteworthy sale to a customer in the Education market," said Lawrence Rychlak, president and chief financial officer at Rand Worldwide. "We were able to show good growth in all of our revenue categories which combined with continued controls over our operating expenses, resulted in a very profitable second fiscal quarter."

"We have consistently shown our customers the great value of our experience and expertise and are very pleased in the confidence that they have placed with us," added Marc Dulude, chief executive officer at Rand Worldwide. "Our recent designation as a Platinum Partner with Autodesk adds further support to our standing as an elite company in the Autodesk marketplace.  In addition, we continue to show significant bookings growth in our Rand Secure Data division and the other important groups within Rand Worldwide and continue to be very excited about the future for the Company."  

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 December 31, Six Months Ended December 31,
2013 2012 2013 2012
Revenues-
     Product sales $13,229,000 $9,569,000 $22,962,000 $19,619,000
     Service revenue 5,630,000 5,191,000 10,755,000 10,151,000
     Commission revenue 5,603,000 5,356,000 9,288,000 9,698,000
          Total revenues 24,462,000 20,116,000 43,005,000 39,468,000
Cost of revenues-
     Cost of product sales 8,509,000 6,113,000 14,759,000 12,306,000
     Cost of service revenue 3,888,000 3,513,000 7,650,000 6,958,000
          Total cost of revenues 12,397,000 9,626,000 22,409,000 19,264,000
Gross margin $12,065,000 $10,490,000 $20,596,000 $20,204,000
Operating income 2,707,000 1,365,000 2,146,000 2,110,000
Income from continuing operations before income taxes 2,495,000 1,271,000 1,927,000 1,987,000
Loss on sale of discontinued operations, net of tax (374,000)                      -   (374,000)                      -  
Loss from discontinued operations, net of tax                      -   (220,000)                      -   (18,000)
Net income 1,185,000 496,000 909,000 1,072,000
Net income from continuing operations available to
     common stockholders 1,532,000 688,000 1,228,000 1,034,000
Net income available to common stockholders 1,158,000 468,000 854,000 1,016,000
Earnings per share:
        Basic earnings per common share:
Continuing operations  $              0.03  $              0.01  $              0.02  $              0.02
Discontinued operations                 (0.01)                      -                   (0.01)                      -  
        Basic earnings per common share  $              0.02  $              0.01  $              0.01  $              0.02
        Diluted earnings per common share:
Continuing operations  $              0.03  $              0.01  $              0.02  $              0.02
Discontinued operations                 (0.01)                      -                   (0.01)                      -  
        Diluted earnings per common share  $              0.02  $              0.01  $              0.01  $              0.02
Weighted average common shares outstanding:
        Basic 54,099,998 53,990,589 54,052,138 53,906,012
        Diluted   56,955,741 55,040,285 55,522,027 54,955,708
December 31, June 30,
2013 2013
Current assets $28,296,000 $20,077,000
Long term assets 27,114,000 28,089,000
Total assets $55,410,000 $48,166,000
Current liabilities $20,001,000 $13,460,000
Long term liabilities 1,078,000 1,506,000
Total stockholders' equity 34,331,000 33,200,000
Total liabilities and stockholders' equity $55,410,000 $48,166,000

Three months ended
12/31/2013 12/31/2012
AEC and Manufacturing Sales as a % of Total Sales:
AEC 40% 49%
Manufacturing 28% 32%
Suites % of Product and Subscription Revenue 70% 57%
Top  Autodesk products by % of product & subscription sales
Building Design Suite                                                           22% 15%
Product Design Suite                                                             18% 22%
Education Suite                                                                 15% n/a - < 1%
AutoCAD                                                                         11% 13%
Infrastructure Design Suite                                                     9% n/a - 5%
Revit n/a - 1% 11%
Civil 3D n/a - 4% 10%

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. For more information, visit rand.com

Rand Worldwide Company Contact
Chantale Marchand
Rand Worldwide
Phone +1 (508) 663-1411
cmarchand@rand.com

Any and all trademarks making reference to or related to Rand Worldwide, IMAGINiT, ASCENT, ProductivityNOW, or Rand Secure Archive are registered and/or owned by Rand Worldwide, Inc., and/or its subsidiaries, affiliates, and/or other legal holders under the Rand Worldwide, Inc. name.

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Source: Rand Worldwide Inc. via Globenewswire
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