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. | ||||||
| Summary Consolidated Financial Data | ||||||
| Three Months Ended September 30, | ||||||
| 2009 | 2008 | |||||
| Revenues- | ||||||
| Product sales | $ | 4,350,000 | $ | 6,113,000 | ||
| Service revenue | 2,046,000 | 2,574,000 | ||||
| Commission revenue | 1,378,000 | 2,127,000 | ||||
| Total revenues | 7,774,000 | 10,814,000 | ||||
| Cost of revenues- | ||||||
| Cost of product sales | 2,982,000 | 4,069,000 | ||||
| Cost of service revenue | 1,196,000 | 1,954,000 | ||||
| Total cost of revenues | 4,178,000 | 6,023,000 | ||||
| Gross margin | 3,596,000 | 4,791,000 | ||||
| Operating income | 239,000 | 214,000 | ||||
| Net income | 127,000 | 154,000 | ||||
| Earnings per share: | ||||||
| Basic | $ | 0.00 | $ | 0.01 | ||
| Diluted | $ | 0.00 | $ | 0.01 | ||
| Weighted average common shares outstanding: | ||||||
| Basic | 17,064,551 | 16,656,834 | ||||
| Diluted | 17,104,241 | 16,883,805 | ||||
| September 30, | June 30, | |||||
| 2009 | 2009 | |||||
| Total assets | $ | 16,630,000 | $ | 17,259,000 | ||
| Total liabilities | $ | 6,754,000 | $ | 6,498,000 | ||
| Series F convertible preferred stock | 907,000 | 1,864,000 | ||||
| Total stockholders' equity | 8,969,000 | 8,897,000 | ||||
| Total liabilities and stockholders' equity | $ | 16,630,000 | $ | 17,259,000 | ||
| Avatech Solutions, Inc. | |||||||
| Reconciliation of non-GAAP financial measure | |||||||
| Three Months Ended | |||||||
| 9/30/2009 | 9/30/2008 | ||||||
| GAAP net income | $ | 127,000 | $ | 154,000 | |||
| Provision for income taxes | 104,000 | 96,000 | |||||
| Income before income taxes | 231,000 | 250,000 | |||||
| Stock-based compensation | 49,000 | 53,000 | |||||
| Net interest (income) expense | 9,000 | (23,000 | ) | ||||
| Depreciation and amortization | 156,000 | 168,000 | |||||
| Adjusted EBITDA | $ | 445,000 | $ | 448,000 | |||
| 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 disc | |||||||
