Avatech Solutions Reports Fourth Consecutive Quarter of Profitability and Net Income of $3.1 Million in Fiscal 2008

Adjusted EBITDA is used by management, analysts, investors and other interested parties in evaluating our operating performance compared to that of other companies in our industry, as the calculation of EBITDA as adjusted eliminates the effect of financing, income taxes, stock-based compensation costs, the accounting effects of capital spending and certain other merger related expenses, which items may vary from different companies for reasons unrelated to overall operating performance.

Avatech believes this non-GAAP measure provides useful information to both management and investors by excluding certain expenses that may not be indicative of its core operating results. These measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. The non-GAAP measure included in this press release has been reconciled to the GAAP results in the accompanying table.

About Avatech Solutions

Avatech Solutions, Inc. (OTCBB: AVSO) is Americas leading professional services company for design and engineering technologies. Avatech advances the way organizations design, develop, and manage building, infrastructure, and manufacturing projects. Fortune 500 and Engineering News Record's Top 100 companies work with Avatech to gain a competitive advantage through technology consulting, implementation, training, and support services. One of the worlds largest integrators of Autodesk software, Avatech designs systems that accelerate innovation while improving quality and profitability. For more information please visit www.avatech.com.

Forward-looking Statement

This press release contains forward-looking statements 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. Statements that are not historical in nature, including those that include the words goal, expect, anticipate, estimate, should, believe, intend, and similar expressions, are based on current expectations, estimates and projections about, among other things, the industry and the markets in which Avatech operates, and they are not guarantees of future performance. Whether actual results will conform to expectations and predictions is subject to known and unknown risks and uncertainties, including risks and uncertainties discussed in this report; general economic, market, or business conditions; changes in interest rates, and demand for our products and services; changes in our competitive position or competitive actions by other companies; the ability to manage growth; changes in laws or regulations or policies of federal and state regulators and agencies; and other circumstances beyond our control. Consequently, all of the forward-looking statements made in this document are qualified by these cautionary statements, and there can be no assurance that the actual results anticipated will be realized, or, if substantially realized, will have the expected consequences on our business or operations.

Avatech Solutions, Inc.
Reconciliation of non-GAAP financial measure
       
Three Months Ended Twelve Months Ended
6/30/2008 6/30/2007 6/30/2008 6/30/2007
 
GAAP net income (loss) $ 742,000 $ (874,000 ) $ 3,091,000 $ (555,000 )
Provision for (benefit) from income taxes   (296,000 )   27,000     493,000     227,000  
Income (loss) before income taxes 446,000 (847,000 ) 3,584,000 (328,000 )
 
Stock-based compensation 204,000 61,000 499,000 739,000
Interest income (21,000 ) (19,000 ) (114,000 ) (62,000 )
Interest expense 9,000 5,000 28,000 198,000
Depreciation and amortization   170,000     174,000     693,000     689,000  
Adjusted EBITDA $ 808,000   $ (626,000 ) $ 4,690,000   $ 1,236,000  
 
 

Note 1 - Management uses adjusted EBITDA, a non-GAAP measure, to evaluate the Company's operating performance and compare the Company's current results with those for prior periods, but cautions that they should not be considered as a substitute for disclosures made in accordance with GAAP

Avatech Solutions, Inc.
Summary Consolidated Financial Data
       
Three Months Ended Twelve Months Ended
June 30, June 30,
2008   2007 2008   2007
 
Revenues-
Product sales $6,690,000 $6,511,000 $27,650,000 $30,125,000
Service revenue 2,728,000 2,922,000 11,363,000 10,689,000
Commission revenue 2,126,000 2,061,000 10,631,000 9,721,000
Total revenues 11,544,000 11,494,000 49,644,000 50,535,000
 
Cost of revenues-
Cost of product sales 4,529,000 4,545,000 18,801,000 19,963,000
Cost of service revenue 2,016,000 1,975,000 8,145,000 7,416,000
Total cost of revenues 6,545,000 6,520,000 26,946,000 27,379,000
 
Gross margin 4,999,000 4,974,000 22,698,000 23,156,000
Operating income (loss) 415,000 (860,000) 3,498,000 (192,000)
Net income (loss) 742,000 (874,000) 3,091,000 (555,000)
 
Earnings (loss) per share:
Basic $ 0.03 $ (0.07) $ 0.16 $ (0.07)
Diluted $ 0.03 $ (0.07) $ 0.15 $ (0.07)
 
Weighted average common shares outstanding:
Basic 16,370,186 15,287,598 16,166,067 14,246,390
Diluted 16,643,517 15,287,598 20,121,896 14,246,390
 
 
June 30, June 30,
2008 2007
 
Current assets $13,955,000 $10,840,000
Property and equipment 781,000 934,000
Other long-term assets 7,860,000 7,800,000
Total assets $22,596,000 $19,574,000
 
Current liabilities $9,425,000 $9,725,000
Series F convertible preferred stock 3,629,000 3,629,000
Stockholders' equity 9,542,000 6,220,000
Total liabilities and stockholders' equity $22,596,000 $19,574,000




Review Article Be the first to review this article



© 2022 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us
ShareCG™ is a trademark of Internet Business Systems, Inc.

Report a Bug Report Abuse Make a Suggestion About Privacy Policy Contact Us User Agreement Advertise