Avatech Solutions
Avatech Solutions Comments on Recent SEC 13D Filing
Wednesday 31 March 2010
FOR IMMEDIATE RELEASE
BALTIMORE – March 31, 2010 - Avatech Solutions, Inc. (OTCBB: AVSO), the nationwide technology experts for design, engineering and facilities management, is providing information to stockholders about the recent Schedule 13D filing with the Securities and Exchange Commission by a group of individual Avatech Solutions stockholders.
On March 5, 2010, a group of Avatech stockholders filed a Schedule 13D with the purpose of disclosing that the group had been formed “to effectuate a sale of all shares of the Issuer owned by members of the Group, to influence, and if possible work with, management of the Issuer to pursue strategies with the purpose of enhancing shareholder value, including but not limited to a merger, sale, or reorganization involving the Issuer, and to contact other shareholders regarding potential strategies to increase shareholder value, and/or to engage in discussions with third parties with respect to these.”
Avatech Solutions is not currently working with this group in any capacity and this group is not acting for or on behalf of the Company, its Board of Directors or its Management. Since their filing, the group has not attempted to make contact with Management or the Board of Directors to inform them of any specific intentions or to engage in any dialogue.
George Davis, Avatech’s CEO, commented, “We remain committed to our current strategic plans and believe that they are in the best interest of all Avatech stakeholders including those represented in the 13D group. We have been steadfast in improving the financial model of the business resulting in positive income and cash flow for each quarter in this fiscal year. This attention to cost management and profitability was a cornerstone of the plan that allowed us to navigate through the recent recession and we have emerged in a position of strength. Our balance sheet is stronger than it has ever been. Our core business is exceptionally solid and our leadership position in the markets we serve continues to be one of our most valuable assets. In addition, we have been able to hold on to what we believe is the best work force in the industry and our technical expertise continues to give us a significant competitive advantage.”
“We are well positioned to leverage these strengths to continue to move forward with our growth and diversification initiatives with a full commitment to enhancing stockholder value”, continued Mr. Davis. “Our plans include profitably growing our core business while concurrently identifying and evaluating potential strategic opportunities that would fuel meaningful growth and diversification. Over the last two years, we have explored various opportunities but we ultimately determined they would not affordably support our objectives of cost and revenue synergies and positive income contribution. We intend to continue our aggressive search of the market for the right opportunities and remain committed to the execution of our current strategic plan.”
Added Thom Waye, Chairman of the Board of Directors of Avatech Solutions and Managing Partner of the Sigma Opportunity Fund, the largest Avatech stockholder, “Following Sigma’s investment, we worked together with the newly appointed CEO, George Davis, the management team and the Board of Directors, to realign Avatech’s cost structure in order to increase the Company’s bottom line and cash flows, with a renewed focus on profitability for the company. Over the next two years, the Company navigated through various industry changes and the severe economic recession that followed. Avatech emerged as a well capitalized, practically debt free Company with strong cash flows, a healthy balance sheet and a strong income statement. As a business manager and investment professional, I know the same is not true for other businesses that were as hard hit as Avatech. Currently, we have exceptional management, tight and efficient capital and expense structures and are poised to execute our strategic plan and deliver more profit to the bottom line than ever before.”
About Avatech Solutions
Avatech Solutions, Inc. (OTCBB: AVSO - News) 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.
About Sigma Capital Partners
Sigma Capital Partners, LLC is a multi-platform asset manager. Through its affiliate private equity funds – Sigma Opportunity Fund, LLC and Sigma Opportunity Fund II, LLC – Sigma provides long-term, strategic, growth and restructuring capital for Micro-Cap public companies. The Funds have an emphasis on Telecommunications and Technology oriented businesses with revenues between $20-$250 million. For more information please visit www.sigmacp.com.
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.
Company Contact Investor Relations Contact
Jean Schaeffer Todd Fromer / Garth Russell
Avatech Solutions, Inc. KCSA Strategic Communications
Phone +1 (410) 581-8080 Phone +1 (212) 896-1215 / 1250
Fax +1 (410) 753-1591 tfromer@kcsa.com /