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 grow" 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. FORWARD-LOOKING STATEMENTS 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 Worldwide Tel: (905) 625-2000, ext. 2369; Fax: (905) 625-3378; E-mail: Email Contact |
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