MobilityTechzone

Latest News

TMCNet:  Avistar Communications Posts Financial Results for the 4th Quarter of 2010

[January 31, 2011]

Avistar Communications Posts Financial Results for the 4th Quarter of 2010

Jan 31, 2011 (Close-Up Media via COMTEX) -- Avistar Communications Corp., a provider of unified visual communications solutions, announced its financial results for the three and twelve months ended December 31.

In a release on January 27, the Company reported that financial highlights included: -Total revenue was $19.7 million and $8.8 million for the years ended December 31, and 2009, respectively. The increase was primarily due to the license and sale of patents in 2010 for $14.0 million. Total revenue for the fourth quarter of 2010 was $1.6 million, compared to $1.9 million for same quarter in 2009, a decrease of 14 percent, reflecting longer than expected sales cycles.

-Operating expense (research and development, sales and marketing, and general and administrative) for the year ended December 31, was $13.5 million, as compared to $11.8 million for the year ended December 31, 2009. Operating expense was $3.1 million for the fourth quarter of 2010, as compared to $2.9 million for the fourth quarter of 2009. The increase was primarily due to planned additional investments in engineering to develop new products in the Unified Communications and Virtual Desktop Infrastructure (VDI) markets.

-Net income was $4.4 million for the year ended December 31, or $0.11 per basic and diluted share, as compared to a net loss of $4.0 million, or $0.11 per basic and diluted share, for the year ended December 31, 2009, an improvement of $8.4 million. Net loss in the fourth quarter of 2010 was $1.9 million, or $0.05 per basic and diluted share, as compared to a net loss of $1.5 million, or $0.04 per basic and diluted share, in the fourth quarter of 2009.

-Cash and cash equivalents balance as of December 31, was $1.8 million. Cash generated from operations during the year ended December 31, was $6.0 million, compared to cash used in operations of $4.9 million for the year ended December 31, 2009.

-Adjusted EBITDA income (as described below) for the year ended December 31, was $5.7 million, compared to an Adjusted EBITDA loss of $1.5 million for the same period in 2009, an improvement of $7.2 million. Adjusted EBITDA loss for the fourth quarter of 2010 was $1.7 million, compared to an Adjusted EBITDA loss of $0.9 million in the same quarter of 2009.

-Total debt balance was $7.0 million as of December 31, a significant reduction from $11.3 million as of December 31, 2009.

Bob Kirk, CEO of Avistar, said, "Our expectations for Avistar's progress in 2010 were partially met but we are confident that we have laid a stronger foundation on which to build in 2011. We invested extensively in our product and technology strategy as we launched industry-leading desktop visual communications solutions within the Unified Communications (UC), VDI and videoconferencing markets. This enabled us to complete the componentization of our platform and provide solutions to end-user clients that directly fit their videoconferencing needs. We believe this also allowed us to better package our products to make Avistar the most cost- effective choice in the market.

Kirk concluded, "In 2010 we completed our initial development efforts by delivering cost-effective products that serve both end-user clients and OEM partners simultaneously. Due to the delivery timing of these new products, the full level of potential revenue generation that we anticipated has not yet materialized, but we are seeing steady growth of our pipeline and related opportunities, which portends well for greater revenue growth this year. In 2011, we plan to enhance our sales efforts to both of these markets now that we have delivered all of these outstanding and industry-leading products." More company information: www.avistar.com ((Comments on this story may be sent to newsdesk@closeupmedia.com))

[ Back To MobilityTechzone Homepage's Homepage ]

FOLLOW MobilityTechzone

Subscribe to MobilityTechzone eNews

MobilityTechzone eNews delivers the latest news impacting technology in the Wireless industry each week. Sign up to receive FREE breaking news today!
FREE eNewsletter