EX-99.1 2 dex991.htm EXHIBIT 99.1 Exhibit 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