EXHIBIT 99.1
[AVISTAR LOGO]
AVISTAR COMMUNICATIONS CORP.
555 Twin Dolphin Drive
Redwood Shores, CA 94065
Tel 650.610.2900 FOR IMMEDIATE RELEASE
Fax 650.610.2901 Contact: Robert J. Habig
Video 650.632.1912 Chief Financial Officer
www.avistar.com 650-610-2900
ir@avistar.com
AVISTAR UPDATES FOURTH QUARTER 2003 BUSINESS OUTLOOK
REDWOOD SHORES, Calif. - January 8, 2004 - Avistar Communications Corporation
(NASDAQ: AVSR), a leading provider of enterprise video communication solutions,
today announced that it expects revenue in the fourth quarter ending December
31, 2003 to be approximately $1.4 million, as compared to $2.0 million of
revenue in the third quarter of 2003 and $1.8 million in the fourth quarter of
2002. The projected fourth quarter revenue result is similar to the revenue of
$1.5 million reported for the second quarter of 2003. The company expects to
report final financial results on January 22, 2004.
"Recovery in the financial services vertical, where we generate the majority of
our revenue, has not yet produced the kind of projectable order flow that we
hope to see return to our business," stated Gerald J. Burnett, chairman and CEO
of Avistar.
"We intend to maintain the disciplines in our spending and capital outlays that
have served us during the recent downturn," said Robert J. Habig, chief
financial officer of Avistar. "We currently expect total operating expense of
approximately $2.8 million for the fourth quarter of 2003, representing the
tenth quarter of operating expense reduction posted during the last eleven
quarters. Our approximate cash balance of $5.4 million at year-end 2003 reflects
the lowest quarterly cash consumption from operations over the last four
quarters."
ABOUT AVISTAR COMMUNICATIONS CORPORATION
Avistar develops, markets and supports video collaboration solutions for the
enterprise, all powered by the AvistarVOS(TM) software. From the desktop,
Avistar delivers TV-quality video calling, recording, publishing to web and
emails, video-on-demand, broadcast, and document sharing. Avistar delivers on
vBusiness - video-enabling business - by integrating visual communications into
the daily workflow and connecting communities of users within and across
enterprises.
Founded in 1993, Avistar Communications Corporation is headquartered in Redwood
Shores, California, with sales offices in New York and London. Avistar's
technology is used in more than 35 countries. Collaboration Properties, Inc., a
wholly owned subsidiary of Avistar Communications Corporation, holds a broad
portfolio of patents covering the AvistarVOS platform as well as multiple
software and hardware video collaboration products. For more information, visit
www.avistar.com.
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AVISTAR OUTLOOK UPDATE - PAGE TWO
FORWARD LOOKING STATEMENTS
Statements made in this news release regarding the operating results that
Avistar expects to report for the fourth quarter of 2003 and future periods are
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act. Such statements are subject to risks and uncertainties that could
cause actual results to differ materially, including such factors, among others,
as market acceptance of our new and existing products; general economic
conditions; conditions in the financial services sector; the length of our sales
cycle and our ability to successfully complete product sales; our dependence on
a few customers for a majority of our revenue; the impact of competitive
products and pricing; stock market fluctuations; and the adequacy of Avistar's
cash resources. As a result of these and other factors, Avistar expects to
experience significant fluctuations in revenue and operating results, and there
can be no assurance that Avistar will become or remain profitable in the future,
or that its future results will meet expectations. These and other risk factors
are discussed in Avistar's Annual Report on Form 10-K and Quarterly Reports on
Form 10-Q filed with the Securities and Exchange Commission from time to time.
Avistar disclaims any intent or obligation to update these forward-looking
statements.
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Copyright (c) 2004 Avistar Communications Corporation. All rights reserved.
Avistar, AvistarVOS, and the Avistar logo are trademarks or registered
trademarks of Avistar Communications Corporation.