UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	December 22, 2011
	January 25, 2012
Date of Report (date of earliest event reported)
AVISTAR COMMUNICATIONS CORPORATION
(Exact name of Registrant as specified in its charter)
Delaware		000-31121	88-0463156
(State or other jurisdiction of incorporation)		(Commission File Number)	(I.R.S. Employer Identification Number)
	1875 S. Grant Street, 10th Floor, San Mateo, California 94402
(Address of principal executive offices, including zip code)
(Address of principal executive offices)
	(650) 525-3300
(Registrant’s telephone number, including area code)
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

~~Section~~Item 12.02 -Results ~~Registrant’s~~of ~~Business~~Operations and ~~Operations~~Financial Condition.

~~Item~~On ~~1.01~~January ~~Entry~~26, ~~into~~2012, Avistar Communications Corporation (“Avistar”) issued a ~~Material~~press ~~Definitive~~release ~~Agreement~~discussing its financial performance for the fourth quarter and the fiscal year ended December 31, 2011. A copy of the press release is attached hereto as Exhibit 99.1.

~~Effective~~The asattached ofpress ~~December~~release ~~22,~~includes ~~2011,~~a ~~Avistar~~discussion ~~Communications~~of ~~Corporation (~~“~~Avistar~~adjusted EBITDA”), asa ~~borrower,~~non-GAAP ~~entered~~financial ~~into~~measure ~~the~~that ~~following~~Avistar ~~agreements~~defines ~~with~~as JPearnings ~~Morgan~~before ~~Chase~~net ~~Bank~~interest, ~~N.A.~~income ~~(the~~taxes, ~~“Bank”)~~depreciation, and amortization, as ~~lender:~~further ~~(i)~~adjusted ~~the~~for ~~third~~stock-based ~~amended~~compensation. Avistar believe adjusted EBITDA is relevant and ~~restated~~useful ~~revolving~~information ~~credit~~to ~~promissory~~its ~~note~~investors ~~agreement,~~as ~~(ii)~~this ~~the~~measure ~~third~~is ~~amended~~an ~~and~~integral ~~restated~~part ~~collateral~~of ~~agreement,~~Avistar’s ~~and~~internal ~~(iii)~~management ~~the~~reporting ~~fifth~~and ~~amended~~planning process and ~~restated~~is ~~security~~a ~~agreement.~~primary ~~The~~measure ~~amended~~used ~~agreements~~by ~~related~~Avistar management to evaluate the ~~renewal~~operating performance of aAvistar’s ~~line~~business. ofThis ~~credit~~non-GAAP measure should be considered in addition to results prepared in accordance with ~~the~~GAAP, ~~Bank~~but should not be considered a substitute for, ~~which~~or superior to, GAAP results. In addition, Avistar’s definition of adjusted EBITDA may ~~draw~~not ~~upon~~be ~~during~~comparable to the ~~term~~definitions as reported by other companies. A reconciliation of ~~the~~this ~~note~~non-GAAP measure to ~~fund~~GAAP ~~its~~can ~~business~~be ~~operations~~found (following the ~~“Credit~~text ~~Facility”)~~of the press release.

~~Also,~~The ~~effective~~information asin this Form 8-K and the exhibit attached hereto shall not be deemed “filed” for purposes of ~~December~~Section ~~22,~~18 ~~2011,~~of ~~Gerald~~the J.Securities ~~Burnett,~~Exchange ~~Chairman~~Act of ~~Avistar~~1934, ~~and~~as ~~The~~amended, ~~Gerald~~(the J.“Exchange ~~Burnett~~Act”) ~~and~~or ~~Marjorie~~otherwise J.subject ~~Burnett~~to ~~Revocable~~the ~~Trust~~liabilities ~~entered~~of ~~into~~that ~~the~~section, ~~fourth~~nor ~~amended~~shall ~~and~~it ~~restated~~be ~~guaranty~~deemed ~~with~~incorporated by reference in any filing under the ~~Bank~~Securities ~~pledging~~Act ~~personal~~of ~~assets~~1933, as ~~collateral~~amended, ~~for~~or the ~~Credit~~Exchange ~~Facility~~Act, regardless of any general incorporation language in such filing.

~~The~~Section 5 ~~amended~~– ~~agreements~~Corporate ~~extended~~Governance ~~the maturity date of the note from December 22, 2011 to December 22, 2012 for a line of credit up to $8.0 million from December 22, 2011 through~~ and including March 13, 2012, and then reduced the line of credit to $6.0 million from and after March 14, 2012 through the maturity date on December 22, 2012. As of December 22, 2011, the total principal amount borrowed by Avistar under the Credit Facility was $8.0 million.Management

~~The~~Item ~~Credit Facility is subject to customary terms and conditions, including several reporting and non-financial covenants~~5. As security for the payment of its obligations under the Credit Facility, Avistar granted JPMorgan a security interest in and right of setoff against substantially all of the assets of Avistar, tangible and intangible. The repayment of funds borrowed and interest accrued under the Credit Facility is also personally guaranteed by Gerald J. Burnett, Chairman of Avistar, and The Gerald J. Burnett and Marjorie J. Burnett Revocable Trust, who has pledged personal assets as collateral for the Credit Facility.02

~~The~~(e) ~~foregoing~~Compensatory ~~description~~Arrangements of ~~the~~Certain Credit Facility as amended, does not purport to be complete and is qualified in its entirety by the terms and conditions of the amended and restated revolving credit promissory note, the amended and restated collateral agreement, the amended and restated security agreement, the amended and restated guaranty, and subsequent amendments and restatements, which were filed as exhibits to Avistar’s Annual Report on Form 10-K for the years ended December 31, 2006 to 2010, and Quarterly Report on Form 10-Q for quarters ended March 31 and September 30, 2011, and the amendments thereto which are expected to be filed as exhibits to Avistar’s Annual Report on Form 10-K for the year ending December 31, 2011.Officers

~~Section~~On January 25, 2012, the Compensation Committee of Avistar Communications Corporation approved the Avistar 2012 management by objectives bonus plan, or the 2012 MBO Bonus Plan. Avistar’s executive officers and managers are expected to be eligible to participate in the 2012 MBO Bonus Plan. The purpose of the Plan is to reward employees for contributions toward Avistar’s business objectives and to aid in retaining and motivating employees. The total bonus pool and target revenue for fiscal 2012 will be either $750,000 and $17.5 million, respectively, or $1,000,000 and $19.2 –million, ~~Financial~~respectively. Any ~~Information~~payouts under the 2012 MBO Bonus Plan will be subject to Avistar’s achievement of the 2012 revenue target at a 90% level or greater. A participant’s payout will be a percentage of his or her base salary and will be based on Avistar’s performance and achievement of individual MBO targets. Up to 100% of the 2012 MBO Bonus Plan will be paid if Avistar meets the revenue target and all individual MBO goals are met. The payout amounts range from $100,000 to $140,000 for Robert Kirk, Chief Executive Officer, and from $60,000 to $80,000 for other executive officers. Payouts to eligible employees under the 2012 MBO Bonus Plan are expected to be paid 30 days after Avistar’s 2012 fiscal year-end earnings release. Subject to applicable laws, payments under the 2012 MBO Bonus Plan will only be made to eligible persons employed by Avistar at the time of payment.

~~Item~~On 2January 25, 2012, the Compensation Committee also approved an increase in the annual salary for Mr.~~01. Completion~~ ofElias ~~Acquisition~~MurrayMetzger orfrom ~~Disposition~~$215,000 ofto ~~Assets~~$250,000, retroactive to January 1, 2012.

In connection with the Credit Facility described above, as security for the payment of Avistar’s obligations under the Credit Facility, Avistar pledged, assigned and granted to the Bank a security interest in, and right of setoff against, substantially all of the assets of Avistar, tangible and intangible. Item 19.01 Financial ofStatements ~~this~~and ~~Report on Form 8-K is incorporated by reference into this Item 2~~Exhibits.~~01.~~

~~Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant~~(d) Exhibits

Item 1.01 of this Report on Form 8-K describes Avistar’s extension of a 12 month revolving credit facility agreement and is incorporated by reference into this Item 2.03.

Exhibit No.	Description
99.1	Press Release of Avistar Communications Corporation dated January 26, 2012.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	AVISTAR COMMUNICATIONS CORPORATION
Date: December 23, 2011	By:	/s/ Elias MurrayMetzger
Date: January 31, 2012	By:	/s/Elias MurrayMetzger
		Elias MurrayMetzger
		Chief Financial Officer, Chief Administrative Officer and Corporate Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Press Release of Avistar Communications Corporation dated January 26, 2012.

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