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Avistar Communications (Avistar Communications) Financial Strength : 0 (As of Mar. 2012)


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What is Avistar Communications Financial Strength?

Avistar Communications has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Avistar Communications has no long-term debt (1). Avistar Communications's debt to revenue ratio for the quarter that ended in Mar. 2012 was 0.90. As of today, Avistar Communications's Altman Z-Score is 0.00.

(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.


Competitive Comparison of Avistar Communications's Financial Strength

For the Communication Equipment subindustry, Avistar Communications's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Avistar Communications's Financial Strength Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Avistar Communications's Financial Strength distribution charts can be found below:

* The bar in red indicates where Avistar Communications's Financial Strength falls into.



Avistar Communications Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Avistar Communications's Interest Expense for the months ended in Mar. 2012 was $0.00 Mil. Its Operating Income for the months ended in Mar. 2012 was $-1.39 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2012 was $0.00 Mil.

Avistar Communications's Interest Coverage for the quarter that ended in Mar. 2012 is

Avistar Communications had no long-term debt (1).

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Avistar Communications's Debt to Revenue Ratio for the quarter that ended in Mar. 2012 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2012 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(9 + 0) / 9.984
=0.90

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Avistar Communications has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Avistar Communications  (OTCPK:AVSR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Avistar Communications has the Financial Strength Rank of 0.


Avistar Communications Financial Strength Related Terms

Thank you for viewing the detailed overview of Avistar Communications's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Avistar Communications (Avistar Communications) Business Description

Traded in Other Exchanges
N/A
Address
1855 South Grant Street, 4th Floor, San Mateo, CA, USA, 94402
Avistar Communications Corp creates technology that provides the missing critical element in unified communications: bringing people in organizations face-to-face, through enhanced communications for the true collaboration anytime, anyplace. The company's solutions include Bandwidth Management, CEBP, Firewall Traversal and Enterprise Endpoints. Its products include Avistar C3 Communicator, Avistar C3 Conference, Avistar C3 Command, Avistar C3 Call Control and Avistar C3 Media Engine.
Executives
R Stephen Heinrichs director, 10 percent owner 141 CASPIAN COURT, SUNNYVALE CA 94089
Jefferies Financial Group Inc. 10 percent owner 520 MADISON AVENUE, NEW YORK NY 10022
Phlcorp Holding Llc 10 percent owner 529 EAST SOUTH TEMPLE, SALT LAKE CITY UT 84102
Baldwin Enterprises, Inc. 10 percent owner 529 EAST SOUTH TEMPLE, SALT LAKE CITY UT 84102
Robert P Latta director 650 PAGE MILL ROAD, PALO ALTO CA 94304

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