George Davis Turns Avatech Around

LAS VEGAS (Autodesk University), Dec 4, 2008 - Those watching the gathering clouds over our economy would have done well to have followed the example of Avatech CEO George Davis.

I first met George last year at AU. He had inherited Avatech, a company that was losing money (over half a million in FY07). This year when I ran into him in the same venue, I asked what's new? "Oh, nothing," he said but a smile gave him away. You see, George had been quite busy.

For the last year, even though revenue stayed flat, George has been able to guide Avatech through several straight profitable quarters. Avatech finished FY2008 over $3 million in the black. It was not without pain, as happens with cost cutting. Managers were first to go. Avatech's head count was reduced from 240 to 210. That by itself accounted for most of the savings, though George adds he also pursued business with higher margins.

Now, with approximately $5 million in the bank and a lean workforce, Avatech is in an enviable position of being able to ride out the storm. "Our competition will not be as lucky," he adds.

Comments

[Unlikely]

It's more likely the highly efficient & lean management style of "Sterling Systems", which Avatech acquired in late 2006, is responsible for this newly profitable behavior.