Avistar sees second consecutive quarter of revenue growth

Visual communications solutions company Avistar Communications reported revenues increased 75 percent in its third quarter to $3.9 million, up from $2.2 million a year ago, driven in a large part by increased sales to channel partners.

The company said net income was $493,000, or 1 cent per basic and diluted share, as compared to a net loss of $1.5 million, or a loss of four cents a year ago.

During the quarter, Avistar signed a license and OEM agreement with Citrix Systems to provide software to enhance delivery of audio and video solutions to Citrix's end-users. The deal requires significant integration of Avistar's products into Citrix's solutions, and it will bring Avistar $8.7 million as the integration and maintenance services are delivered by Avistar over the next 15 months. Avistar also will see payments totaling $3 million for maintenance services through 2015.

"In the third quarter of 2011 Avistar successfully achieved very specific objectives with regard to our product, sales and operational goals," said Bob Kirk, CEO of Avistar. "These goals... focused on ensuring that our virtualized product strategy succeeded through strong partnerships, such as the one we have forged with Citrix, while expanding the value and features of our all-software visual communications infrastructure."

Kirk said Avistar also sized its operation to help ensure that the company had all of its assets in place to succeed in its target markets and scale when needed.

Avistar delivers desktop videoconferencing capabilities to technology partners including Citrix, IBM, LifeSize and Logitech.

For more:
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