Rand Worldwide Announces Letter of Intent to Sell Subsidiary
Company Also Announces First Quarter Results Postponement
Mississauga, Ont., May 1, 2003 - Rand A Technology Corporation [TSX: RND],
operating as RAND Worldwide�, announced today the completion of a Letter of Intent to sell one of its wholly-owned, non-PLM German subsidiaries to the established management group.
The subsidiary, RAND Technologies GmbH, has its head office and is
registered in Ellwangen, Germany, and currently employs 183 people. During
fiscal 2002, this subsidiary had revenue of $65.0 million and a net loss of
$3.0 million, including restructuring costs and asset writedowns of $2.9
million. For the first quarter of 2003, ended March 31, the group had
revenue of $14.4 million a net loss of $876,000.
After including the proceeds from the sale, which are contingent upon
certain conditions, RAND Worldwide expects to record an accounting loss
related to the disposition of this business, the details of which would be
included in the Company's results for the quarter ended June 30, 2003.
"This divestiture is part of our program to reduce non-PLM related costs
and, at the same time, concentrate on supporting the best PLM process
implementations around the world," said Brian Semkiw, CEO of RAND Worldwide.
"RAND Worldwide has a separate, well-established and successful product
lifecycle management business in Germany which we plan on continuing to
RAND Worldwide also announced that the release of its first quarter
financial results, previously scheduled for today, will be postponed due to
an administrative delay. These results are expected to be released on or
about May 9, 2003. The Company's financial results are still expected to be
in line with the range announced in its Press Release of April 14, 2003.
Details of the timing of the first quarter financial release, as well as of
the Investor Conference Call, previously scheduled to be held on Friday, May
2, 2003, will be announced next week.
About RAND Worldwide
RAND Worldwide is one of the world's leading providers of services and
technology to companies looking to optimize their product lifecycle
management (PLM) processes. Unlike traditional CAD/CAM/CAE/PDM technologies,
PLM provides collaborative solutions to define and manage information
throughout the complete product lifecycle and across the entire extended
enterprise. As the world's only independent global technology provider, RAND
Worldwide employs over 1,000 people through sales and client service centres
in 26 countries around the world. The Company's corporate head office in
Mississauga, Ontario, Canada can be reached at 905-625-2000 or through the
Internet at www.rand.com.
This news release may contain forward-looking statements based on
management's current projections, beliefs and opinions at the date of this
news release. Actual results could differ materially from those anticipated
in these statements. RAND Worldwide undertakes no responsibility to update
forward-looking statements if circumstances or management's projections,
beliefs or opinions change.
For further information please contact:
Greg Taylor, Vice President, Investor Relations & Communications, RAND
Tel: (905) 625-2000, ext. 2369; Fax: (905) 625-3378; E-mail:
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