RADVISION Reduces Outlook for 2011 Second Quarter
TEL AVIV, Israel –(Business Wire)–
RADVISION® (Nasdaq: RVSN) announced today that based on
preliminary results, the Company now expects to report revenues for the
second quarter of 2011 of approximately $18.0 to $18.5 million. As a
result, the net loss for the second quarter of 2011 is expected to range
from $0.41 to $0.44 per diluted share on a GAAP basis and from $0.27 to
$0.30 per diluted share on a non-GAAP basis. GAAP results also include a
tax asset valuation allowance expense of approximately $1.7 million,
equivalent to $0.09 per diluted share. This compares with its forecast
on May 5, 2011 that revenues for the 2011 second quarter would
approximate $22 million and that the net loss would be approximately
$0.17 per diluted share on a GAAP basis and $0.12 per diluted share on a
non-GAAP basis. The non-GAAP amounts exclude stock-based compensation
expense of $0.5 million in accordance with ASC (News – Alert) 718 and amortization of
purchased intangible assets of $0.4 million.
The revised second quarter outlook is primarily the result of lower than
anticipated revenues in the Company’s Video Business Unit (VBU), which
are expected to approximate $14.5 to $15.0 million. This includes
revenues from Cisco (News – Alert) of approximately $1.5 million, which is in line with
forecast but substantially below the $9.5 million of revenues from Cisco
in the second quarter of 2010. Despite its revised forecast, the
Company’s core VBU revenues are expected to increase by more than 30%
from the second quarter of 2010, after excluding revenues from Cisco
from both periods.
The Company noted further that revenues from its Technology Business
Unit (TBU) are expected to apprximate $3.5 million, which is also below
its original forecast for the second quarter of 2011.
Boaz Raviv, Chief Executive Officer, commented: “While we knew the
second quarter would be challenging because of the anticipated
substantial drop in Cisco revenues from the second quarter last year,
the quarter was more difficult than expected. While our revenues in
EMEA, APAC and CALA continued to grow year over year, revenues in our
VBU in North America did not meet our plan. Our Company is currently in
the midst of becoming an end-to-end video conferencing provider but
getting full traction is taking longer than originally expected. Getting
back on track with our plan is our priority. We have overcome challenges
in the past and we are taking all necessary actions to ensure we return
to growth company-wide as quickly as possible.”
The Company will provide full details for the second quarter of 2011
when it reports final results on Tuesday, August 2, 2011.
About RADVISION
RADVISION (Nasdaq: RVSN) is the industry’s leading provider of
market-proven products and technologies for unified Visual
Communications over IP, 3G and IMS networks. With its complete set of
standards-based video communications solutions and developer toolkits,
RADVISION is driving the Unified Communications (News – Alert) evolution by combining
the power of video, voice, data and wireless – for high definition Video
Conferencing Systems, innovative converged mobile services, and highly
scalable video-enabled desktop platforms on IP, 3G and emerging
next-generation IMS networks. To gain additional insights into our
products, technology and opinions, visit blog.radvision.com.
For more information about RADVISION, visit www.radvision.com.
This press release contains forward-looking statements that are
subject to risks and uncertainties. Factors that could cause actual
results to differ materially from these forward-looking statements
include, but are not limited to, our ability to integrate the Aethra
video assets into our product offerings, general business conditions in
the industry, changes in demand for products, the timing and amount or
cancellation of orders and other risks detailed from time to time in
RADVISION’s filings with the Securities Exchange Commission, including
RADVISION’s Form 20-F Annual Report. These documents contain and
identify other important factors that could cause actual results to
differ materially from those contained in our projections or
forward-looking statements. Stockholders and other readers are cautioned
not to place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. We undertake no
obligation to update publicly or revise any forward-looking statement.
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