CIMdata PLM Industry Summary Online Archive
18 May 2004
Financial News
Avatech Reports Two-Fold Increase in Operating Income and an Increase of $929,000 in Net Income for Third Quarter
Avatech Solutions, Inc. ( http://www.avatechsolutions.com ) announced financial results for its third quarter ended March 31, 2004.
Revenues increased 29% to $7.8 million when compared to the $6.1 million reported in the third quarter of last year. Net income for the quarter increased $929,154 to $170,362 when compared to a net loss of $(758,792) reported in the previous year. Basic earnings per share for the third quarter of 2004 increased to $0.02 compared to a loss of $($0.08) per share in the third quarter of 2003.
Revenues for the nine months ended March 31, 2004 were $21.6 million, an increase of 26% when compared to the $17.1 million reported in nine months ended March 31, 2003. The net loss for the nine months was $(327,176), or $(0.04) per share, a 44% decrease when compared to a net loss of $(586,445), or $(0.08) per share, reported in the prior year.
Third Quarter Highlights:
• Quarterly revenue increased 29%, year-over-year, to $7.8 million.
• Product sales for the quarter increased 55% to $5.1 million.
• Net income for the quarter increased $929,154, year-over-year, to $170,362, or $0.02 per share.
• Operating income for the quarter increased to $398,767 when compared to an operating loss of $(360,911) reported in the previous year.
• Avatech announced new customer wins during the quarter, including:
• Bauer Compressors who has standardized its custom engineering applications on an Autodesk Inventor 3D platform.
• Dow Chemical Company who has standardized and licensed their innovative STYROFOAM * T-MASS* Technology based on an Autodesk software platform with Avatech's custom professional services.
• Avatech expanded its custom professional services offerings by introducing skills assessment testing and analysis.
• Avatech strengthened its Board of Directors with the additions of Robert La Blanc and Robert Post.
Mr. La Blanc brings to Avatech over 40 years of leadership experience in information technologies and investment banking consulting, while Mr. Post brings a 20-year track record in finance operations, business restructuring and creating profitable high growth in new entities.
"We are pleased again with the progress we have made this quarter, confirming that our strategies to improve the Company continue to be effective," said CEO of Avatech Solutions, Scotty Walsh. "Over the last four quarters we have shown improvements in operating results, and revenue continues to increase on a year over year basis. Our core business of design automation remains among the most sophisticated in the industry and continues to generate revenue growth and increased profitability. I am also excited by the significant strides we have accomplished with our diversification plan. We have built a world class team from the most talented individuals in the industry, and both our PLM (Product Lifecycle Management) and FM (Facilities Management) teams contributed to growth during the quarter."
Mr. Walsh concluded, "We continue to focus on growing our revenue, improving profitability and increasing shareholder value and remain confident that we will deliver a strong close to our fiscal year."
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