RadVision

(Nasdaq:RVSN) is in the process of acquiring

VCON

(Nouveau Marche:022021), estimates Dolev & Abramovitch Hi-Tech Information.

RadVision develops products and technology for delivering in real time voice, video and data over Internet-protocol based networks. The company is part of the

RAD

group.

VCON's market cap on the bourse stands at $10.7 million. The company's value has dropped by 86% over the last year.

VCON develops IP-based visual communications solutions and services marketed via an international network of distributors. Its international center is located in Herzliya, Israel.

RadVision had $94 million cash at the end of the first quarter of this year. D&A believes that the company might draw on its cash reserve to stabilize its market position and to compete with

Polycom

TheStreet Recommends

(Nasdaq:PLCM).

In addition, D&A points out, the voice and video communications market has developed a trend of consolidations.

Six months ago Polycom acquired the Israeli company

Accord Networks

(Nasdaq:ACCD) for $339 million in a stock deal. To this end, Polycom listed for trade in Tel Aviv.

Polycom announced a year ago that its acquisition campaign continues and that it has acquired its rival

PictureTel Corporation

(Nasdaq:PCTL) for $362 million for cash and shares. Once completed, the deal will make Polycom the world's leading manufacturer of appliances for managing video and audio-conference calls.

RadVision has been encountering quite a few problems, such as the slowdown in Internet-telephony spending by enterprises, shrinking budgets for network equipment, the telecoms slowdown, low visibility, and layoffs.

RadVision is expected to release its results for the second quarter of this year this Monday. It had releasing a profit and revenue warning for the second quarter.

Investment house Piper Jaffray believes that RadVision's revenues will come to $10.2 million in the second quarter, the lower range of the company's guideline. The company is expected to lose 4 cents per share, compared with EPS of 9 cents in the first quarter of this year.