Avatech Solutions Reports Strong Second Quarter Revenue and Earnings; Five Consecutive Quarters of Profitability.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 second quarter ended December 31, 2005, reporting its fifth consecutive quarter of profitability. The Company reported net income of $805,000, or $0.07 per share, for the three months ended December 31, 2005, compared with income of $9,000 for the same period in 2004. Total revenues for the quarter were approximately $9.5 million, a 16% increase over revenues for the second quarter of 2004. The Company's year-to-date improvement was even more impressive evidenced by a 25% growth in revenues between the six months ended December 31, 2005 and 2004. Year-to-date net income increased to $1,010,000 ($0.08 per share) in 2005 as compared with a net loss of $804,000 ($0.09 per share) in 2004. "We continue to make improvements in all parts of our business and are very pleased with reporting our fifth consecutive quarter of profitability," said Avatech 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. "In addition to our healthy revenue growth, our profit margins have been increasing and the services side of our business continues to expand. We continue to invest in our growth and are very optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the Company's outlook for the future," continued Walsh. "While we are currently ahead of the plan that we have developed for Avatech for this year, we fully expect to continue to grow both our revenues and our earnings through improved productivity, by reinforcing our industry-focused company alignment and by continuing our commitment to deliver outstanding products and service to our customers." In addition to the profitable results that the Company has been experiencing, Avatech has recently opened a new office in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the , embarked on an aggressive hiring plan to add new sales and technical personnel, and has completed a restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of its debt which will provide the capital necessary to continue to execute its growth strategy. "As one of the largest integrators of Autodesk products worldwide, we are taking advantage of the strong demand for our solutions while we are making the investments in our organization that we believe will pay off in the years to come," added Walsh. Avatech's stock closed on Monday, February 13th at $2.05 per share, more than four times the $0.50 closing price on June 30, 2005, the Company's fiscal year end. 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.avatech.com for more information.
Avatech Solutions, Inc.
Summary Consolidated Financial Data
Three Months Ended Six Months Ended
December 31, December 31,
----------------------------------------------------------------------
2005 2004 2005 2004
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Revenues $9,451,000 $8,186,000 $18,679,000 $14,939,000
Cost of revenue 4,553,000 4,646,000 9,600,000 8,736,000
Gross margin 4,898,000 3,540,000 9,079,000 6,203,000
Operating income
(loss) 939,000 160,000 1,298,000 (515,000)
Net income (loss) 805,000 9,000 1,010,000 (843,000)
Earnings (loss)
per share:
Basic $0.07 $0.00 $0.08 $(0.09)
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Diluted $0.05 $0.00 $0.06 $(0.09)
============ ============ ============ ============
Weighted average
common shares
outstanding:
Basic 11,231,627 10,124,694 11,058,411 9,862,176
============ ============ ============ ============
Diluted 17,051,497 10,124,694 16,539,757 9,862,176
============ ============ ============ ============
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 ATTENDANT. One who owes a duty or service to another, or in some sort depends upon him. Termes de la Ley, h.t. As to attendant terms, see Powell on Morts. Index, tit. Attendant term; Park on Dower, c. 1 7. 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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