Avistar Communications announced that SCH Distribution will distribute Avistar C3 solutions through its partner network. The Avistar C3 solutions being represented by SCH includes Avistar C3 Desktop Channel Bundle, Avistar C3 Communicator, and Avistar C3 Unified Microsoft OCS Edition. SCH said that increasingly, customers expect their new IT investments to build upon and better utilize their current UC infrastructures as well as leverage new approaches such as virtualization. With Avistar C3 solutions, resellers now have a suite of videoconferencing products that both meet the customers' needs and helps them achieve their business goals.

Avistar Communications Corp. reported unaudited consolidated earnings results for the fourth quarter and full year ended December 31, 2009. For the quarter, the company reported total revenue for the fourth quarter of 2009 was $1.9 million, compared to $3.1 million for same quarter in 2008, a decrease of 39%. Net loss in the fourth quarter of 2009 was $1.5 million or $0.04 per basic and diluted share compared to a net loss of $231,000 or $0.01 per basic and diluted share, in the fourth quarter of 2008, a 565% increase. Adjusted EBITDA loss for the fourth quarter of 2009 was $909,000 compared to an Adjusted EBITDA profit of $591,000 in the same quarter of 2008. Loss from operations was $1.45 million compared to $116,000 for the same period a year ago. The company reported total revenue was $8.8 million for each of the years ended December 31, 2009 and 2008. Net loss was $4.0 million or $0.11 per basic and diluted share compared to a net loss of $6.4 million or $0.18 per basic and diluted share for the year ended December 31, 2008, a 38% decrease. Net cash used in operations was $4.9 million, compared to $8.9 million for the year ended December 31, 2008, a $4.0 million improvement. Adjusted EBITDA loss was $1.5 million compared to an Adjusted EBITDA loss of $4.0 million for the same period in 2008, a reduction in adjusted EBITDA loss of $2.5 million, or 63%. Loss from operations was $3.6 million compared to $6.02 million for the same period a year ago.

Avistar Communications Corp. entered into a patent license agreement with Springboard Group S.A.R.L. (SKYPE). Under the Agreement, Avistar granted to SKYPE for the lives of the patents, a royalty-free, irrevocable, non-exclusive license under certain patents to make, have made (subject to certain limitations), use, import or export, offer to sell, sell, lease, license, or otherwise transfer or distribute certain licensed products. These granted rights and license include rights for authorized entities and end users of SKYPE to form combinations with other products for certain authorized purposes. As consideration for the license, SKYPE agreed to pay Avistar the sum of $3 million. Avistar has the right to terminate the Agreement upon ten days written notice to SKYPE if the agreed upon payment is not made within the time frame agreed upon in the Agreement. The sum of $3 million was paid to Avistar by SKYPE on January 25, 2010.