Avatech and Rand Worldwide are reporting combined earnings for the first time since their August 2010 merger. Year-end statements give a glimpse inside the formerly private Rand.

PLM and BIM reseller Avatech Solutions, Inc. (OTCBB: AVSO) has reported its first fiscal quarter since a reverse merger with Rand Worldwide August 2010. (For details on the merger see “Resellers Rand and Avatech Merge Business Operations.”) Because of the technicalities of the merger, the year-prior data is actually only the results of Rand Worldwide, not the pre-merger Avatech. Thus we get a peek into how formerly private Rand was doing before the merger—not as good as the company it bought.

For the three months ending September 30, 2010, (first quarter fiscal year 2011), the new Avatech reported total revenue of $16.8 million, compared with $13.7 million a year earlier for the old Rand.

For the quarter, the company recorded an operational loss of $2.2 million, primarily due to $1.7 million in one-time merger-related costs. In the year-ago period (representing only Rand income), the company reported a net loss of $530,000. The old Avatech reported a net profit during the year-ago period of $2.4 million.

Revenue by category:

Category : ……………… 1Q-2011                 1Q-2010

Products: ……………… $9,328,000         $7,547,000

Services: ……………… $4,495,000           $4,102,000

Commission:……….. $2,999,000      $2,016,000

Total:……………………..$16,822,000   $13,665,000

Cash on hand September 30, 2010 was $0.35, up from $0.20 six months earlier. We expect the new Avatech to do a reverse stock split in the coming months, which will increase this figure significantly.