|
For the fourth quarter of fiscal 2008, Avatech expects to
report total revenue of approximately $11.5 million,
compared to $11.5 million in the fourth quarter of fiscal
2007. Preliminary net income increased to $741,000, or $0.03
per fully diluted share, compared to a net loss of
$(873,000), or $(0.05) per fully diluted share, in the same
period of the prior year. EBITDA as adjusted (as defined)
increased to $807,000 in the fourth quarter of fiscal 2008,
from a loss of $(607,000) in the prior year period.
For the full year ended June 30, 2008, Avatech expects to
report revenues of approximately $49.6 million, compared to
$50.5 million in the prior year. Preliminary net income is
expected to increase to approximately $3,090,000, or $0.15
per fully diluted share, compared to a net loss of
$(555,000), or $(0.04) per fully diluted share in fiscal
2007. EBITDA as adjusted increased to $4,678,000 in fiscal
2008, compared to $1,236,000 in fiscal 2007.
George Davis, President and Chief Executive Officer of
Avatech Solutions, said, “Our strong preliminary net income
and Adjusted EBITDA in fiscal 2008 indicate the successful
execution of our business strategy and continued cash flow
generation throughout the entire year. Over the last 12
months, we have focused intently on reducing costs and
achieving consistent profitability, in the face of a
weakening economic environment. As a direct result of these
cost-saving initiatives, we have delivered record net
income, increased our cash balance by 225% to approximately
$5.5 million and increased shareholder equity by 38% to
$13.2 million. Looking forward to 2009, we are concentrating
on top line growth by expanding our go to market (sales) and
implementation (engineering) teams with a continued focus on
growing the services component of our business.
Additionally, we will continue to expand our offerings
through new initiatives, including expanding the marketing
efforts for our new Manufacturing Consulting Division.”
These expected operating results are preliminary and subject
to management and the Company's auditors completing their
quarterly closing review procedures.
The Company plans to release its financial results for the
fiscal fourth quarter and year ended June 30, 2008 on
September 29, 2008 and will host a conference call that day
to discuss in detail the quarter’s results.
Note Regarding Use of Non-GAAP Financial Measure
This news release contains the non-GAAP measure EBITDA as
adjusted. EBITDA as adjusted represents earnings (or losses)
before interest, income taxes, depreciation and
amortization, and stock-based compensation expense.
EBITDA as adjusted 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 America’s 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
world’s largest integrators of Autodesk software, Avatech
designs systems that accelerate innovation while improving
quality and profitability. For more information please visit
www.avatech.com. |
