RADVISION Announces Improved Forecast For 2011 Fourth Quarter
(Nasdaq: RVSN), a leading technology and
end-to-end solution provider for unified visual communications,
today that based on preliminary results, the Company expects to report
RADVISION® (Nasdaq: RVSN), a leading technology and end-to-end solution provider for unified visual communications, announced today that based on preliminary results, the Company expects to report revenues for the fourth quarter of 2011 in the range of $21.5 million to $22.0 million. This compares with its previous forecast that fourth quarter revenues would approximate $18 million, reported on October 27. As a result, the Company has reduced its forecast of the net loss for the fourth quarter to approximately $0.25 to $0.28 per diluted share on a GAAP basis, and $0.18 to $0.21 per diluted share on a non-GAAP basis The Company’s initial forecast for the fourth quarter of 2011 was for a net loss of approximately $0.37 per diluted share on a GAAP basis, and $0.31 per diluted share on a non-GAAP basis. The non-GAAP amount mainly excludes stock-based compensation expense of $0.7 million in accordance with ASC 718 and amortization of purchased intangible assets of $0.4 million. The improved fourth quarter outlook mainly reflects record sales of its video endpoints as well as stronger than expected infrastructure sales, which contributed to higher than anticipated revenues in the Company’s Video Business Unit (VBU). Total VBU sales are expected to approximate $18.0 million to $18.5 million versus its forecast of $14.0 million. Its Technology Business Unit (TBU) sales are expected to approximate $3.5 to $4.0 million. The Company also reported that each region achieved sequential revenue growth in the 2011 fourth quarter, despite continued competitive conditions globally. Boaz Raviv, Chief Executive Officer, commented: “Our improved forecast for the fourth quarter, driven by record endpoint sales and strong demand for our infrastructure, is a welcome indication that our effort to transform RADVISION into an end-to-end video conferencing provider is taking effect. The sequential improvement in each of our regions in the quarter is especially noteworthy. In the face of a challenging year, we have remained fully focused on leveraging the competitive strength of our award-winning video conferencing technology and on executing our strategy to return to profitability and growth.”
Radvision (Nasdaq:RVSN) hit a new 52-week high Tuesday as it is currently trading at $11.77, above its previous 52-week high of $11.76 with 15,640 shares traded as of 3:26 p.m. ET. Average volume has been 234,900 shares over the past 30 days.