Avistar Communications Reports Financial Results for the First Quarter of 2002.Business Editors REDWOOD redwood: see sequoia; brazilwood. redwood or sequoia Coniferous evergreen timber tree (Sequoia sempervirens) of the family Taxodiaceae, found in the fog belt of west-coastal North America. SHORES, Calif.--(BUSINESS WIRE)--April 25, 2002 Avistar Avistar Communications Corporation  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Communications Corporation (Nasdaq:AVSR (Audio Visual Speech Recognition) Using lip reading software to enhance speech recognition. In noisy environments where a camera can be included, AVSR improves the computer's ability to recognize the speaker's words by visually tracking lip movement and ), the leading provider of enterprise video communication solutions, today announced financial results for the three months ended March 31, 2002. Revenue for the three months ended March 31, 2002 was $2.7 million, compared to revenue of $6.1 million for the three months ended March 31, 2001. These results were consistent with the revised company guidance provided on March 28, 2002. For the three months ended March 31, 2002, gross margin was 51% compared to 57% for the three months ended March 31, 2001. Avistar reported a net loss of $1.9 million, or $0.08 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the three months ended March 31, 2002. For the three months ended March 31, 2001, Avistar reported a net loss of $1.4 million, or $0.06 per basic and diluted share. As of March 31, 2002, Avistar had cash and cash equivalents and short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. investments of $10.9 million and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . "We remain optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the growing interest in video-enabled applications in conducting important business interactions, despite disappointing first quarter 2002 results," stated Gerald Gerald - ["Gerald: An Exceptional Lazy Functional Programming Language", A.C. Reeves et al, in Functional Programming, Glasgow 1989, K. Davis et al eds, Springer 1990]. J. Burnett, Avistar's chairman and chief executive officer. "Revenue in the first quarter of 2002 reflected continued weakness in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. sector," stated Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Habig, Avistar's chief financial officer. "During the first three months of 2002, we continued to tightly manage our costs, with total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. of $3.4 million, reflecting a decline of over $200,000 from the fourth quarter of 2001, and the fourth consecutive quarterly decrease in operating expenses." "Looking ahead, we expect second quarter 2002 revenue and gross margin to be similar to those achieved in the first quarter of 2002. We expect operating expenses in the second quarter of 2002 to be between $3.4 million and $3.6 million. We also expect to use approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. the same amount of cash in the second quarter of 2002 as we did in the first quarter of 2002. For the second half of 2002, assuming some improvement in the economy, we expect modest revenue growth versus the second half of 2001. We intend to continue to tightly manage our operating expenses commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with our revenue performance." Conference Call Details Avistar is hosting a conference call at 5:00 PM Eastern/2:00 PM Pacific, today, Thursday Thursday: see week. , April 25, 2002 to discuss first quarter 2002 results and review the company's progress and outlook. Interested parties may participate in the conference call by dialing 888/881-4892. The conference call can also be accessed via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by going to the Investor Relations Investor relations The process by which the corporation communicates with its investors. page at www.avistar.com. For those unable to participate on the live call, a 24-hour replay will be available for seven days after the call at www.avistar.com or by calling 877/289-8525 and giving the following pass-code: 184999#. About Avistar Communications Corporation Avistar develops, markets and supports a comprehensive suite of networked video communication services for the enterprise. From the desktop, Avistar delivers TV-quality interactive video calling, content creation and publishing, broadcast origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real and distribution, video-on-demand The ability to deliver a movie, sports event or other video program to a TV set whenever the customer requests it. Video-on-demand (VOD) typically refers to free and paid programs from the cable TV companies or the telephone companies that offer video over DSL lines. , and integrated data sharing The ability to share the same data resource with multiple applications or users. It implies that the data are stored in one or more servers in the network and that there is some software locking mechanism that prevents the same set of data from being changed by two people at the same time. . The Avistar video and data collaboration See data conferencing. applications are all managed by the AvistarVOS video operating system operating system (OS) Software that controls the operation of a computer, directs the input and output of data, keeps track of files, and controls the processing of computer programs. . Founded in 1993, Avistar Communications Corporation (Nasdaq:AVSR) is headquartered in Redwood Shores, California Redwood Shores is an upscale and desirable [1] waterfront neighborhood on the San Francisco Peninsula in California. It is located on the eastern edge of Belmont, but is actually part of incorporated Redwood City. , with sales offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. . Collaboration Properties, Inc Collaboration Properties, Inc. (CPI) is a wholly owned subsidiary of Avistar Communications Corporation. It holds US and foreign patents in the primary areas of presence-based interactions, desktop video, recorded and live media at the desktop, multimedia documents, data sharing, ., a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Avistar Communications Corporation, holds a broad portfolio of patents covering the AvistarVOS platform as well as multiple software and hardware video collaboration products See collaborative software. . For more information on Avistar, visit www.avistar.com. Forward Looking Statements Statements made in this news release regarding Avistar's financial outlook for the 2002 fiscal year, in particular the economic environment and its resulting impact on capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. budgets, customer spending patterns and Avistar revenues, gross margins, and operating expenditures, as well as statements regarding "strategies," "intentions," "expectations," "beliefs," "goals," or the like, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . Such statements are subject to risks and uncertainties that could cause actual results to differ materially, including such factors, among others, as the impact of economic weakness and purchasing patterns in the financial services industry, the impact of competitive products and pricing, the timely development and market acceptance of new products, the ability to raise capital, the concentration of sales amongst a limited number of customers, the mix between domestic and international sales, manufacturing and cost of Avistar's products, dependence on partners, the enforceability of intellectual property rights, the ability to achieve sales and revenue objectives, the ability to manage expenses, the ability to enter into new distribution agreements, uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc sole source suppliers, fluctuations in the stock market, alternative technological approaches and adoption of alternative technological standards. As a result of these and other factors, Avistar expects to experience significant fluctuations in operating results, and there can be no assurance that Avistar will become or remain consistently profitable in the future, or that its future results will meet expectations. These and other risk factors are discussed in Avistar's "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" set forth in Avistar's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December December: see month. 31, 2001 filed on March 21, 2002 with the Securities and Exchange Commission. Avistar disclaims any intent or obligation to update these forward-looking statements. Note to Editors: Avistar, AvistarVOS, and the Avistar logo are trademarks or registered trademarks of Avistar Communications Corporation.
AVISTAR COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
for the three months ended March 31, 2002 and 2001
(in thousands, except per share data)
Three Months Ended
--------------------
March 31, March 31,
2002 2001
-------- ---------
(unaudited)
Revenue:
Product $ 1,521 $ 4,682
Services, maintenance and support 1,179 1,400
-------- --------
Total revenue 2,700 6,082
-------- --------
Cost of revenue:
Product 724 1,838
Services, maintenance and support 599 796
-------- --------
Total cost of revenue 1,323 2,634
-------- --------
Gross margin 1,377 3,448
-------- --------
Operating Expenses:
Research and development 1,149 1,569
Sales and marketing 1,014 1,778
General and administrative 1,083 1,527
Amortization of deferred stock compensation (1) 126 285
-------- --------
Total operating expenses 3,372 5,159
-------- --------
Loss from operations (1,995) (1,711)
-------- --------
Other income (expense):
Interest expense -- (2)
Interest income 91 275
Other, net (4) 33
-------- --------
Total other income (expense), net 87 306
-------- --------
Net loss $ (1,908) $ (1,405)
======== ========
Net loss per share - basic and diluted $ (0.08) $ (0.06)
======== ========
Weighted Average shares used in calculating
basic and diluted net loss per share 25,231 25,150
======== ========
(1)Amortization of deferred stock compensation
excluded from the
following expenses:
Cost of revenue $ 16 $ 42
Research and development 12 35
Sales and marketing 95 201
General and administrative 3 7
-------- --------
$ 126 $ 285
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AVISTAR COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
as of March 31, 2002 and December 31, 2001
(in thousands, except share data)
March 31, Dec. 31,
2002 2001
---------- ----------
(unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 5,338 $ 7,455
Short-term investments 5,599 5,831
Accounts receivable, net of allowance for
doubtful accounts of $358 and $232,
respectively 2,558 2,760
Inventories, including inventory shipped
to customers sites, not yet installed of
$185 and $262, respectively 1,086 1,096
Prepaid expenses and other current assets 832 1,121
-------- --------
Total current assets 15,413 18,263
Property and equipment, net 570 599
Other assets 405 403
-------- --------
Total assets $ 16,388 $ 19,265
======== ========
Liabilities and Stockholders' Equity:
Current liabilities:
Bank overdraft $ -- $ 149
Accounts payable 707 633
Deferred revenue and customer deposits 807 1,205
Accrued liabilities and other 1,568 2,237
-------- --------
Total current liabilities 3,082 4,224
-------- --------
Stockholders' equity:
Common stock, $0.001 par value; 250,000,000
shares authorized at March 31, 2002 and
December 31, 2001; 26,415,958 and
26,362,603 shares outstanding at
March 31, 2002 and December 31, 2001,
respectively 26 26
Treasury common stock, 1,166,125 shares
outstanding at March 31, 2002 and
December 31, 2001 (1) (1)
Additional paid-in-capital 80,075 80,000
Deferred stock compensation (367) (493)
Other comprehensive income 51 79
Accumulated deficit (66,478) (64,570)
-------- --------
Total stockholders' equity 13,306 15,041
-------- --------
Total liabilities and stockholders'
equity $ 16,388 $ 19,265
======== ========
AVISTAR COMMUNICATIONS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
for the three months ended March 31, 2002 and 2001
(in thousands)
Three Months Ended
--------------------
March 31, March 31,
2002 2001
--------- ---------
(unaudited)
Cash Flows from Operating Activities:
Net loss $ (1,908) $ (1,405)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation 97 17
Amortization of stock compensation expense 126 285
Provision for doubtful accounts 126 (35)
Changes in current assets and liabilities:
Accounts receivable 76 614
Inventories 10 563
Prepaid expenses and other current
assets 290 74
Other assets (2) (217)
Accounts payable 74 (225)
Deferred revenue and customer deposits (398) (153)
Accrued liabilities and other (669) 8
-------- ---------
Net cash used in operating activities (2,178) (474)
-------- ---------
Cash Flows from Investing Activities:
Purchase of short-term investments -- (7,796)
Sale of short-term investments 204 --
Purchase of property and equipment (69) (134)
-------- ---------
Net cash provided by (used in) investing
activities 135 (7,930)
-------- ---------
Cash Flows from Financing Activities:
Decrease in bank overdraft (149) --
Proceeds from issuance of common stock 75 169
Repurchases of common stock -- (23)
-------- ---------
Net cash provided by (used in) financing
activities (74) 146
-------- ---------
Net decrease in cash and cash equivalents (2,117) (8,258)
Cash and cash equivalents, beginning of
period 7,455 21,660
-------- ---------
Cash and cash equivalents, end of period $ 5,338 $ 13,402
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