E-business web applications specialist
(Nasdaq:RDVW) has managed to keep investors happy this time, when it met their humble expectations for the first quarter of 2001. The company reported revenues of $2.3 million, just the number investors had in mind, and the same exact revenue total it brought in the comparable quarter last year.
On the bottom line, Radview reported a loss of $5.5 million, deducting one time expenses, which reflects a pro forma loss of 30 cents per share. Though far worse than the 7 cent loss it had in the comparable quarter last year, it is still better than the 32 cents loss most analysts had generally forecast.
"The fact that the results in the first quarter met our expectations proves the validity of our plan of operation for 2001," said Radview founder, president and CEO Ilan Kinreich in the press conference held following the report's publication. "We continue to build up our marketing plan in order to gain foothold in the market niche on the project level, both in the U.S. and the world over."
The company indeed reports a substantial increase in sales outside the U.S., particularly in Europe and Japan. A closer look at its profit and loss charts reveals its R&D and sales and marketing expenses grew threefold compared to the comparable quarter last year, hence the inflated loss, which Radview had to take in order to keep up its edge over the competition.
Radview, of the
group, develops tools for Internet application and e-commerce testing, and competes with
(Nasdaq:MERQ) over the Internet website overload testing market.
Radview has $27 million cash in hand. Its management estimates that it is burning up about $4 million a quarter. But Radview is also burdened with short term commitments totaling $6 million.
Based on its good results, Radview is not changing its forecasts. It predicts revenues of $13-13.5 million in the year 2001, which would reflect an annual growth of 25%. The company also expects operating expenses to get as high as $32 million, and the net loss to reach an $18.5-19 million range, a $1.02-$1.05 loss per share in the whole year 2001.