CIMdata PLM Industry Summary Online Archive
November 14, 2007
Financial News
Avatech Solutions Announces Profitable First Fiscal Quarter
Avatech Solutions, Inc., the nationwide technology experts for design, engineering, and facilities management, today announced financial results for its first fiscal quarter ended September 30, 2007.
For the first quarter of fiscal 2008, the Company reported revenues of $12,417,000 compared to $12,045,000 in the prior-year period. The Company reported net income of $489,000, or $0.02 per fully diluted share, compared to net income of $36,000, or $0.00 per fully diluted share, in the same period of the prior year.
President and Chief Executive Officer George Davis commented, "We executed on our strategy in the first quarter and Avatech's financial results reflect the benefit of that focus. Net income rose as a result of a modest increase in revenue from the first quarter of the prior year - including an 8% increase in services revenue - combined with a decrease of more than $600,000 in selling, general and administrative expenses. This decrease reduced SG&A as a percentage of sales to 37.2% compared to 43.4% in the fiscal 2007 first quarter and was achieved through the execution of our cost-reduction and containment initiatives, which began in February 2007.
"We have established a prudent cost base and a rigorous expense management philosophy for Avatech, and are working aggressively to improve gross margins. In conjunction with our successful cost containment efforts, this will lay a solid long-term foundation for consistent profitability and improved earnings. We continue to expect to deliver modest revenue growth in fiscal 2008 and be profitable in each successive quarter.
"With our baseline operational plans and a renewed emphasis on the bottom line in place, we have been turning additional attention to growth and strategic endeavors, with particular focus on services and diversification. With the increased need for vertical and 3D solutions, we are seeing a natural demand for complimentary services in advanced training, consultancy and implementation. Our goal is to leverage the extensive need for engineering solutions and to use Avatech's industry expertise and outstanding technical capabilities to grow our Company's bottom line."
Conference Call Information
Avatech will hold a conference call to discuss its first quarter results at 11:00 a.m. ET on Wednesday, November 14, 2007. The dial-in number for the conference call is (866) 634-2258. (For international callers, the dial-in number is 706-643-9926.) A replay of the call will also be available through Wednesday, November 21, 2007, and can be accessed by dialing (706) 645-9291, conference ID #23107099. An audio replay of the conference call will be available in the Investor Relations section of the Company's Web site, http://www.avatech.com/
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