CIMdata PLM Industry Summary Online Archive
15 May 2009
Financial News
Avatech Solutions Reports Fiscal 2009 Third Quarter Results
Avatech Solutions, Inc. announced financial results for its third fiscal quarter and nine months ended March 31, 2009.
For the third quarter of fiscal 2009, the Company reported revenues of $8.0 million, compared to $12.8 million in the prior-year quarter. Selling, general & administrative expenses decreased to $3.9 million in the three months ended March 31, 2009, compared to $4.7 million in the same period of the prior fiscal year.
The Company incurred a net loss of $146,000, or $(0.01) per fully diluted share, for the three months ended March 31, 2009, compared to net income of $1.0 million, or $0.05 per fully diluted share, in the same period in the prior year. Adjusted EBITDA (as defined) was $106,000 in the third quarter of fiscal 2009, from adjusted EBITDA of $1.7 million in the prior year period.
For the nine months ended March 31, 2009, the Company reported revenues of $28.2 million, compared to $38.1 million in the prior-year period. Selling, general & administrative expenses decreased to $12.6 million in the first nine months of Fiscal 2009, when compared to $14.1 million in the same period of the prior fiscal year.
For the nine months ended March 31, 2009, Avatech reported a net loss of $216,000, or $(0.03) per fully diluted share, compared to net income of $2.3 million, or $0.12 per fully diluted share, for the same period in the prior year. Adjusted EBITDA (as defined) was $401,000 in the first nine of fiscal 2009 from adjusted EBITDA of $3.9 million in the prior year period.
“The building and manufacturing markets continue to be adversely affected by the recession, forcing our customers to reduce costs and postpone investments in new software and services. While at this time we cannot predict when our business will return to traditional levels, we can commit that we will continue to monitor the cost containment plans we have put in motion and will take any additional actions that we believe to be necessary. As an example of just how effective these measures can be, our previously established cost containment initiatives and on going business management controls resulted in a return to positive adjusted EBITDA and a small net loss for the third quarter,” commented George Davis, President and Chief Executive Officer of Avatech.
“As part of our effort to drive revenue in this tough market, we are working more closely than ever with our customers in an attempt to bring them improved solutions that add value through enhanced productivity, reduced costs and improved competitiveness. Our core focus right now is trying to balance providing premier service to our large customer base and capturing incremental new business, while ensuring that we manage our day to day operations in the spirit of protecting our cash and liquidity,” continued Mr. Davis.
“I am confident in the business we have built at Avatech and remain committed to maintaining its position of strength through this period so we will be well positioned when the market returns to traditional levels,” concluded Mr. Davis.
Conference Call Information
Avatech Solutions will hold a conference call to discuss its third quarter results at 11 a.m. ET on May 15, 2009. A replay of the call will also be available through May 22, 2009, and can be accessed by dialing (888) 286-8010 (domestic) or (617) 801-6888, and dialing the passcode (64478089).
A live webcast of the conference call will be available to all investors in the Investor Relations section of the Company's website, www.avatech.com. For those who cannot listen to the live broadcast, an audio replay of the call will also be available on the Company’s site for a limited time.
Become a member of the CIMdata PLM Community to receive your daily PLM news and much more.
Tell us what you think of the CIMdata Newsletter. Send your feedback.
CIMdata is committed to your privacy. Your personal information will never be sold or shared outside of CIMdata without your express permission.