Avatech Solutions Announces Record Revenue and Earnings for Fiscal Year 2005, and Strong Fourth Quarter Results.BALTIMORE -- Avatech Solutions, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :AVSO AVSO Association of Voluntary Service Organisations .OB), the recognized leader in design and engineering solutions, product lifecycle Product lifecycle or product life cycle is the course of a product's sales and profits over time. The five stages of each product lifecycle are product development, introduction, growth, maturity and decline. management, and facilities management The management of a user's computer installation by an outside organization. All operations including systems, programming and the datacenter can be performed by the facilities management organization on the user's premises. , today announced earnings for its fourth quarter and fiscal year ended June 30, 2005. Earnings for the fourth quarter of fiscal 2005 were approximately $714,000, or $0.06 per share -- a dramatic turnaround from Avatech's 2004 fourth quarter loss of $598,000 or ($0.06) per share. Revenue was up 37% over the same period last year. For the fiscal year ended June 30, 2005, the Company reported net income of $1,934,000, or $0.18 per share -- an almost $2,900,000 million improvement over the $927,000 loss reported for the fiscal year ended June 30, 2004. Avatech's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Scotty Walsh, said, "The last three quarters of profitable operations and a profitable year-end are further proof that our business strategy is working. Overall, we enhanced our position as a leading design and engineering systems integrator An individual or organization that builds systems from a variety of diverse components. With increasing complexity of technology, more customers want complete solutions to information problems, requiring hardware, software and networking expertise in a multivendor environment. , and expect our growth and profitability will continue to gain momentum. We are adding more customer-facing experts, continuing to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. our solutions offerings, and increasing services revenue." Mr. Walsh added, "We are looking at a number of acquisition opportunities that would substantially increase revenues, be accretive to earnings, and further our diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. strategy." During the 2005 fiscal year, the Company experienced double-digit increases in product sales, service revenue, and commission revenue as the result of an increased sales focus in its existing offices as well as the acquisition of the assets of Comtrex Corporation in North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. . In addition, Avatech also increased revenues through the $1,900,000 million sale of a software product to Autodesk. "During fiscal 2005, the Company focused on increasing the productivity of its sales and service professionals, and reallocating our resources to our offices around the country and within the market segments that we felt would provide us with the best long-term opportunities while reducing overall costs. Anyone who looks at our balance sheet will see a much stronger company than they saw a year ago -- a trend we intend to continue," added Walsh. About Avatech Solutions Avatech Solutions, Inc. (OTCBB:AVSO.OB) is the recognized leader in design and engineering technology with unparalleled expertise in design automation, data management and process optimization Process optimization is the practice of making changes or adjustments to a process, to get results. Optimization is the use of specific techniques to determine the most cost effective and efficient solution to a problem or design for a process. for the manufacturing, engineering, building design and facilities management markets. Headquartered in Owings Mills, Maryland Owings Mills is an unincorporated community and a census-designated place in Baltimore County, Maryland, United States. The population was 20,193 at the 2000 census. Owings Mills is home to the northern terminus for the Baltimore Metro Subway and to Owings Mills Mall. , the company specializes in consulting, software systems integration and implementation, standards development and deployment, education, and technical support. Avatech is one of the largest integrators of Autodesk software worldwide and a leading provider of PLM (Product Life cycle Management) A comprehensive information system that coordinates all aspects of a product from initial concept to its eventual retirement. Sometimes called the "digital backbone" of a product, it includes the requirements phase, analysis and design solutions. The company's clients include industry leaders from Fortune 500 and Engineering News Record's Top 100 companies. Visit http://www.avatechsolutions.com for more information.
Avatech Solutions, Inc.
Summary Consolidated Financial Data
Three Months Ended Twelve Months Ended
June 30, June 30,
----------------------------------------------------------------------
2004 2005 2004 2005
----------------------------------------------------------------------
Revenues $6,381,064 $8,768,786 $27,950,494 $34,144,428
Cost of revenue 3,826,796 4,769,592 16,733,715 17,894,448
Gross margin 2,554,268 3,998,194 11,216,779 16,249,980
Operating income
(loss) (483,186) 844,343 (187,269) 2,491,529
Net income (loss) (598,376) 713,514 (926,765) 1,934,077
Earnings (loss) per
share:
Basic $ (0.06) $ 0.06 $ (0.11) $ 0.18
=========== =========== ============ ============
Diluted $ (0.06) $ 0.05 $ (0.11) $ 0.14
=========== =========== ============ ============
Weighted average
common shares
outstanding:
Basic 9,396,846 10,868,326 9,341,785 10,355,150
=========== =========== ============ ============
Diluted 9,396,846 14,112,125 9,341,785 13,947,055
=========== =========== ============ ============
This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about the expectations, beliefs, plans, intentions, and strategies of Avatech Solutions, Inc. There are a number of important factors that could cause actual results to differ materially from those anticipated by any forward-looking information. A description of risks and uncertainties attendant to Avatech and its industry, and other factors that could affect the Company's financial results, are included in its Securities and Exchange Commission filings, including, but not limited to, the annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ending June 30, 2005 and other Securities and Exchange Commission filings. Investors and shareholders may obtain a free copy of the documents filed by Avatech Solutions, Inc. with the Commission at the Commission's web site at www.sec.gov. All brand names, product names, or trademarks belong to their respective holders. |
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