8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report: December 12, 2007

AVATECH SOLUTIONS, INC.

(Exact name of registrant as specified in its charter)

Delaware	001-31265	84-1035353
(State of Incorporation)	(Commission File No.)	(IRS Employer Identification Number)

10715 Red Run Boulevard, Suite 101, Owings Mills, Maryland 21117

(Address of principal executive offices, including Zip Code)

Registrant’s telephone number, including area code: (410) 581-8080

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

INFORMATION TO BE INCLUDED IN THE REPORT

Item 7.01 Regulation FD Disclosure

The Company is scheduled to make a presentation during an investor conference on December 12, 2007. The presentation slides to be used are attached to this Current Report on Form 8-K as Exhibit 99.1 and are incorporated herein solely for purposes of this Item 7.01.

In accordance with General Instruction B.2 of Form 8-K, the information set forth in this Item 7.01, including Exhibit 99.1, is furnished pursuant to Item 7.01 and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits.

Exhibit 99.1 Investor presentation slides (furnished herewith)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AVATECH SOLUTIONS, INC.
Date: December 12, 2007	By:	/s/ Lawrence Rychlak
		Lawrence Rychlak
		Executive Vice President and Chief Financial Officer

EXHIBIT INDEX

Exhibit	Description
99.1	Investor presentation slides (furnished herewith)

EX-99.1

Exhibit 99.1

Exhibit 99.1

Avatech Solutions, Inc.

Avatech Solutions, Inc.

OTC BB:AVSO

George Davis

President and CEO

December 12

th

2007

Forward-Looking Statement

This presentation 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 presentation 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.

Who We Are

A National Design Automation and Technology Services Company

•

A dominant provider in the US Design, Automaton Software and Services markets.

•

Largest

U.S.

based

Autodesk

(Nasdaq:

ADSK)

Solution

Provider

•

Software, Consulting, implementation, customization, training, and support

Providing solutions that radically improve the way clients design,

develop, and manage projects, products, and facilities

With an industry-focused services organization with unrivalled

experience and expertise

Avatech Solutions

Our customers not only see, but also

experience, their designs before they are

real, empowering them to save time and

money, improve quality and foster

innovation

Client Rendering

Markets We Serve

Trusted Experts in Delivering Design, Engineering and

Facilities Management Technology Solutions

Facilities Management

Building Design

Mechanical Design

Civil, Survey, and Mapping

Why we Win

Industry experts

•

85 Engineers –

Core Value

National footprint and support capabilities with

focused regional support

A trusted business advisor

Unrivalled industry expertise; proven

methodologies

Customers view us as a committed partner that

injects innovation into their business practices

Avatech’s History

$51

$40

$32

$28

$23

$0

$10

$20

$30

$40

$50

$60

$70

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

MM

MM

MM

MM

MM

18,000 Clients 

National Resources, Local Service

Avatech Current Snapshot

Growth

strategy successful –

50M+ sales

Recommended and respected brand

One of Autodesk’s largest integrators worldwide

18,000 Clients/Valuable installed base

Industry leading work force and technical

competency

Focused on profitability

Emphasis on services business

Strong platform –

poised for profitable growth

Revenue Growth from 2003

$16.6

$22.5

$26.1

$32.2

$39.8

$5.5

$6.1

$7.4

$10.7

$5.9

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

$55

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

Software Sales

Services

21.2%

of

Revenues

$22.5

$32.2

$50.5

$28.0

$39.6

Focus on Services Growth

Earnings Trend

$(3.8)

$(0.9)

2.2

-0.6

0.5

$0.1*

$(5.0)

$(4.0)

$(3.0)

$(2.0)

$(1.0)

$-

$1.0

$2.0

$3.0

FY 2003

FY 2004

FY 2005

FY 2006

FY 2007

FY 2008

* Excluding Proprietary Software Sale of $1.9MM.

Focus on

Profitability

Q1

Enhanced Balance Sheet

$1.06

$0.04

$0.00

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

FY 2005

FY 2006

FY 2007

Long-term debt has been eliminated.

…while shareholder’s equity including

preferred stock has grown to $9.8MM.

Focus on Shareholder Value

0

$(1.3)

$4.9

$9.8

($2.0)

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

FY 2005

FY 2006

FY 2007

Profitability Focus

Expense Management

•

$3M

reduction

in

SGA

–

Annualized

•

SGA as a % of sales significantly reduced

Streamlined organization

•

Sales and services focus

Company wide accountability in place

Collaborative focus on expense containment and

margin improvement

Financial Highlights

22.4% Annual Revenue Growth from FY03

First

Quarter

FY08

Profitable

–

will

continue

Enhanced Balance Sheet

•

Elimination of Long Term Debt

•

$9.8MM positive Shareholder’s

Equity as of Q1FY08

•

$1.3MM deficit in Q1 FY06

Positive Cash Flow from Operating

Activities in FY07

Market Situation

The restructuring of the design professions is

being driven by new methods, processes

technologies, demographics, values and

behaviors

Avatech is

positioned to exploit

the revolution

Avatech Positioned to Grow

Avatech’s Position

Market Dynamics

Service and integration

requirements fit our services

sweet spot. Our Professional

Services Team are experts at

bringing all the parts of the

digital design world together

The market is moving from

stand alone point solutions to

integrated platforms:

BIM, Digital Prototyping, Data

and Asset Management and

Collaboration needs continue

to grow rapidly

Ability to leverage a large

installed base movement to 3D

modeling

Adoption of Advanced

Modeling Technology is

growing rapidly

•

Gov’t-driven 

Improvements

•

Improve Site

Development

•

Emergency Response

$1.5BN

CAD Solutions

•

Urban Renewal

•

Building Information

Modeling (BIM)

•

Sustainable Design

•

Green Building

$3BN

CAD Solutions

•

Globalization      

Collaboration needs

drive PDM/PLM

•

Shorter Product

Lifecycles

•

Virtual prototyping

Transition

from drafting

to modeling

and integrated

solutions is

accelerating

$12BN

PLM Solutions

$8BN

CAD/CAM Solutions

Sector Drivers

Market

Drivers

Global Market

Size*

Market Opportunities

Building

Infrastructure

Source: Daratech and Autodesk Internal Research

Manufacturing

Growth Strategy

Focuses on expanding our offerings, geography and people with a

clear emphasis on growing our Services business.

Add new solution offerings, offer additional services

and continue development of new value add

solutions to fill voids in existing markets.

Diversification

Target companies with profitable operations and

$5-15MM in revenues in new geographic regions,

with an emphasis on services. Must be accretive.

Acquisitions

Increase efforts to attract and retain highly qualified

professionals, including sales application

engineers, and technical consultants.

Workforce

We will exploit our technical expertise in support of

the evolving integrated design process economy.

Organic Growth

Future Direction

FY2008 focus on profitability and modest revenue growth.

Next

3-5 Years:

•

Targeting 10-20% annual revenue growth to achieve a $100MM

revenue run rate in the next 3-5 years

•

Increase Net Income

•

Increase Services Revenues to 30-40% of Total Revenues and

increase the Gross Margin

•

Target profitable

companies with $5-

15MM in Revenues

•

Opportunity for

increased Services

Revenues

ACQUISITIONS

•

Offer other value

add solutions and

services to existing

customers

•

Continue Facilities

Management 

expansion

DIVERSIFICATION

•

Ramp up existing

hires

•

Increase utilization

of technical

personnel

SERVICES

GROWTH

DRIVERS

Investment Highlights

A dominant provider in the U.S. Design Automation software and

services market

In a position to lead the restructuring of the Design Industry

Preferred position with Autodesk (Nasdaq:ADSK) –

the world’s

largest provider of design automation software

Profitable and growing consulting services group

Compelling growth opportunity in 3D modeling design

conversions, integrated design platforms and Facilities

Management

Proven management Team supported by strong Board of

Directors

Diverse customer base, with no single customer generating more

that 2% of revenue

Focus

on profitability and service growth

Thank

You