CIMdata PLM Industry Summary Online Archive

26 August 2008

Financial News

Avatech Solutions Reports Preliminary Net Income for Fiscal 2008

Avatech Solutions, Inc. announced preliminary unaudited financial results for its fiscal fourth quarter and year ended June 30, 2008.

For the fourth quarter of fiscal 2008, Avatech expects to report total revenue of approximately $11.5 million, compared to $11.5 million in the fourth quarter of fiscal 2007. Preliminary net income increased to $741,000, or $0.03 per fully diluted share, compared to a net loss of $(873,000), or $(0.05) per fully diluted share, in the same period of the prior year. EBITDA as adjusted (as defined) increased to $807,000 in the fourth quarter of fiscal 2008, from a loss of $(607,000) in the prior year period.

For the full year ended June 30, 2008, Avatech expects to report revenues of approximately $49.6 million, compared to $50.5 million in the prior year. Preliminary net income is expected to increase to approximately $3,090,000, or $0.15 per fully diluted share, compared to a net loss of $(555,000), or $(0.04) per fully diluted share in fiscal 2007. EBITDA as adjusted increased to $4,678,000 in fiscal 2008, compared to $1,236,000 in fiscal 2007.

George Davis, President and Chief Executive Officer of Avatech Solutions, said, “Our strong preliminary net income and Adjusted EBITDA in fiscal 2008 indicate the successful execution of our business strategy and continued cash flow generation throughout the entire year. Over the last 12 months, we have focused intently on reducing costs and achieving consistent profitability, in the face of a weakening economic environment. As a direct result of these cost-saving initiatives, we have delivered record net income, increased our cash balance by 225% to approximately $5.5 million and increased shareholder equity by 38% to $13.2 million. Looking forward to 2009, we are concentrating on top line growth by expanding our go to market (sales) and implementation (engineering) teams with a continued focus on growing the services component of our business. Additionally, we will continue to expand our offerings through new initiatives, including expanding the marketing efforts for our new Manufacturing Consulting Division.”

These expected operating results are preliminary and subject to management and the Company's auditors completing their quarterly closing review procedures.

The Company plans to release its financial results for the fiscal fourth quarter and year ended June 30, 2008 on September 29, 2008 and will host a conference call that day to discuss in detail the quarter’s results.

For additional information including financial tables please visit http://phx.corporate-ir.net/phoenix.zhtml?c=145010&p=irol-newsArticle&ID=1190551&highlight

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