[October 30, 2009] Avistar Communications Releases 3Q Financial Results Tweet Oct 30, 2009 (Close-Up Media via COMTEX) -- Avistar Communications, a unified visual communications solutions provider, announced its financial results for the three and nine months ended September 30. Financial highlights, the company noted in a release on October 26, included: - Total revenue for the nine months ended September 30, was $6.9 million; as compared to $5.6 million for the nine months ended September 30, 2008, an increase of 23 percent. Total revenue for the third quarter of 2009, was $1.4 million, as compared to $2.7 million for same quarter in 2008, a decrease of 47 percent. - Operating expense (research and development, sales and marketing, and general and administrative) for the nine months ended September 30, was $8.9 million, as compared to $11.4 million for the nine months ended September 30, 2008, representing a substantial reduction of 22 percent. Operating expense was $3.2 million for the third quarter of 2009, as compared to $3.1 million for the third quarter of 2008, demonstrating the stabilization of Avistar's cost structure. - Net loss was $2.5 million for the nine months ended September 30, or $0.07 per basic and diluted share, as compared to a net loss of $6.2 million, or $0.18 per basic and diluted share, for the nine months ended September 30, 2008, a 60 percent decrease. Net loss in the third quarter of 2009 was $1.9 million, or $0.05 per basic and diluted share, as compared to a net loss of $774,000, or $0.02 per basic and diluted share, in the third quarter of 2008, a 144 percent increase. - Third quarter 2009 expenses included $473,000 for severance paid to former executives and $311,000 of legal services related to Avistar's intellectual property. These expenses are not expected to recur on a regular basis. - Cash and cash equivalents balance as of September 30, was $382,000 and the company had $3.3 million available through its line of credit. Cash used in operations during the nine months ended September 30, was $4.3 million, compared to $9.3 million for the nine months ended September 30, 2008, a $5.0 million improvement. - Adjusted EBITDA loss (as described below) for the nine months ended September 30, was $541,000, compared to an Adjusted EBITDA loss of $4.6 million for the same period in 2008, a reduction in adjusted EBITDA loss of $4.0 million, or 88 percent, for the first three quarters of 2009. Adjusted EBITDA loss for the third quarter of 2009 was $1.3 million, compared to an Adjusted EBITDA profit of $53,000 in the same quarter of 2008. Bob Kirk, CEO of Avistar, said, "When comparing our results thus far in 2009 against 2008, our corporate performance continues to improve on many fronts, as we overcome remaining challenges. Avistar's strategy and focus, implemented earlier this year, are beginning to show results, although we expect to see the full financial impact in future quarters. The state of the global economy this year, coupled with our sales channel model only just coming up to speed, led to lower than expected revenue. With that said, we have taken steps to consolidate a number of our channel partners under master distributors. This action alone will make our channel model more productive by focusing the teams' effort on our distributors, who in turn will focus their efforts on making our resellers more productive. In addition, we have implemented a pricing model that we believe is the most compelling desktop visual communications product bundle in the industry today. Both of these changes are starting to have a beneficial effect on our channel strategy." "Additionally, the combination of Cisco's System's recently-announced acquisition of Tandberg, continued analyst data from renowned research firms demonstrating strong market growth, our refinement of our channel strategy, and growing momentum within our technology licensing business, in addition to focusing on a productive method to monetize our patent portfolio, leads us to believe that Avistar is well positioned to capture more significant market share in the videoconferencing industry." Kirk said, "With the industry growing at an exceptional rate and our solutions and products continuing to evolve in ways that directly provide value to our distributors and partners alike, we believe that Avistar is very well positioned to emerge as the industry's dominant desktop visual communications provider." More Information: www.avistar.com ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]