EBITDA for the most recent twelve months also reached a three year high. EBITDA (Earnings Before Interest Taxes Depreciation and Amortization) is calculated by taking Operating Income and adding or subtracting depreciation and/or amortization.
The Company’s first quarter earning indicated revenues for the quarter ending March 31, 2006 were $495,589 compared to $354,911 for the 2005 first quarter, a 39.6% improvement. Net income was $2,977 compared to a loss of $29,085 in the first quarter of 2005. Typically, Avatar’s first quarter reflects a loss. All four revenue components, software, maintenance, professional services and hardware increased over the 2005 quarter. Cost of revenues was $130,810 compared to $68,389 for the previous year’s corresponding quarter. Operating expenses were up 9.9% for the current quarter.
Chuck Shreve, President and Chief Executive Officer of Avatar Systems, Inc. said, “Our first quarter results were gratifying since we traditionally have a loss. We are experiencing strong demand for our software and document imaging/ management products as the oil and gas industry continues to upgrade its systems. Our second quarter is also reflecting higher revenues and we are optimistic that 2006 will be a banner year.”
About Avatar Systems, Inc. Avatar Systems, Inc. is based in Frisco, Texas. The company provides enterprise resource solutions for companies engaged in the petroleum exploration and production industry as well as Document Management Imaging Solutions for all vertical markets. Avatar has a growing customer base on its Petroware(TM) products, customers
Forward Looking Statement: The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward- looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.�
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Source:
PRNewswire-FirstCall via COMTEX/
AVSY — Avatar Systems, Inc.
Address:
5728 LBJ Freeway
Suite 270
Dallas, TX 75240
Website: http://www.avatarsystems.net
Phone: 214 972-1800
