Avatech Solutions, Inc. (AVSO.OB), the nationwide technology expert for design, engineering, and facilities management, recently announced its financial results for the fiscal fourth quarter and year ended June 30, 2008. The company’s stock declined earlier this week on the announcement of flat revenues for the fourth fiscal quarter of 2008.
Quarterly revenues totaled $11.5 million, compared to $11.5 million in the prior-year quarter. For the fourth quarter of fiscal 2008, net income reached $742,000, or $0.03 per fully diluted share, compared to a net loss of $(874,000), or $(0.07) per fully diluted share, in the same period one year earlier. Adjusted EBITDA increased to $808,000 in the fourth quarter of fiscal 2008, from negative adjusted EBITDA of $(626,000) in the prior period.
During a recent conference call, Lawrence Rychlak, the chief financial officer of Avatech Solutions, stated, “The lack of growth in revenues for the year can be attributed to the economic environment, particularly in the building sector, that resulted in a slowdown of purchasing decisions by the customers in our market. In addition, competition has increased in our market and made it more difficult to garner a greater market share.” Mr. Rychlak added, “Our focus in the coming quarters will be to continue to demonstrate profitable results and positive cash flows from operations, while getting back on track with top-line revenue growth.”
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