Voice and video technology company
(Nasdaq:RVSN) today said that second-quarter earnings will be substantially lower than forecast. It also announced a 10% cut in staff because of declining orders.
During the fourth quarter, RadVision lowered its growth forecast to 50% for the year 2001, from an early expectation of 90% growth. Even that seems too optimistic now.
Now RadVision expects to end the second quarter with eaenings of 1 cent, maybe 2 cents per share, compared with 10 cents earnings forecast by analysts.
RadVision President and CEO Ami Amir expects second quarter revenues to drop to $12.5 million to $11.5 million, compared with earlier forecasts of $20 million.
Amir said that the company's first-quarter results will be almost as forecast, with revenues of $14.9 million, against the forecast $15.3 million.
Net profit is expected to comply with expectations: around $1.8 million or $1.9 million, or 8 cents to 9 cents per share.
Amir attributed the dropping demand for the company's products to diminished procurement by American companies.
The company finds it hard to provide forecasts for the second half of this year but Amir expects 2001 revenues of about the same as 2000: $46 million.