Similar financials to AOB but only trading around a dollar... I like this company, did 6 cents last quarter, 14 cents the quarter before, revenues and profits are trending up 30% year over year, this is one of them that started off a few years ago losing money, and is turning around as we speak... I estimate they do 30 cents fiscal year 2006, giving the stock a forward PE of under/around 4.


BALTIMORE, Sep 28, 2005 (BUSINESS WIRE) -- Avatech Solutions, Inc. (OTCBB:AVSO.OB), the recognized leader in design and engineering solutions, product lifecycle management, and facilities management, today announced earnings for its fourth quarter and fiscal year ended June 30, 2005.

Earnings for the fourth quarter of fiscal 2005 were approximately $714,000, or $0.06 per share -- a dramatic turnaround from Avatech's 2004 fourth quarter loss of $598,000 or ($0.06) per share. Revenue was up 37% over the same period last year.

For the fiscal year ended June 30, 2005, the Company reported net income of $1,934,000, or $0.18 per share -- an almost $2,900,000 million improvement over the $927,000 loss reported for the fiscal year ended June 30, 2004.

Avatech's CEO, Scotty Walsh, said, "The last three quarters of profitable operations and a profitable year-end are further proof that our business strategy is working. Overall, we enhanced our position as a leading design and engineering systems integrator, and expect our growth and profitability will continue to gain momentum. We are adding more customer-facing experts, continuing to diversify our solutions offerings, and increasing services revenue."

Mr. Walsh added, "We are looking at a number of acquisition opportunities that would substantially increase revenues, be accretive to earnings, and further our diversification strategy."

During the 2005 fiscal year, the Company experienced double-digit increases in product sales, service revenue, and commission revenue as the result of an increased sales focus in its existing offices as well as the acquisition of the assets of Comtrex Corporation in North Carolina. In addition, Avatech also increased revenues through the $1,900,000 million sale of a software product to Autodesk.

"During fiscal 2005, the Company focused on increasing the productivity of its sales and service professionals, and reallocating our resources to our offices around the country and within the market segments that we felt would provide us with the best long-term opportunities while reducing overall costs. Anyone who looks at our balance sheet will see a much stronger company than they saw a year ago -- a trend we intend to continue," added Walsh.

About Avatech Solutions

Avatech Solutions, Inc. (OTCBB:AVSO.OB) is the recognized leader in design and engineering technology with unparalleled expertise in design automation, data management and process optimization for the manufacturing, engineering, building design and facilities management markets. Headquartered in Owings Mills, Maryland, the company specializes in consulting, software systems integration and implementation, standards development and deployment, education, and technical support. Avatech is one of the largest integrators of Autodesk software worldwide and a leading provider of PLM solutions. The company's clients include industry leaders from Fortune 500 and Engineering News Record's Top 100 companies. Visit http://www.avatechsolutions.com for more information.

Looks like a great find.  The balance sheet is weak  but  AVSO has a very strong income statement and has really turned the corner this past year.  With a net income of .178 per share and a stock price of $1.10 there is a current P/E ratio of 6.2 which is low by any standard.  Good luck!