Apparently intending to pre-empt doubts among investors, on January 3


(Nasdaq:RVSN) announced that based on preliminary results for the fourth quarter of 2000, it would meet, maybe beat, analyst forecasts.

RADVision CFO David Seligman says that the company had no choice but to release the announcement. He explained that the company was receiving calls from investors worried about the general slump in the market and the spate of profit warnings. Not us, Seligman soothed: RADVision will not disappoint.

RADVision expects revenues in the range of $15 million to $15.2 million in the fourth quarter of 2000. Its expectations are above forecasts released by investment houses covering the company, such as

US Bancorp Piper Jaffray

, which predicted that RADVision's fourth-quarter sales would total $14.7 million. If the company is accurate, revenue will have grown 19% from the third quarter and 170% from the corresponding quarter of 2000.

Seligman opines that the company is traded at a discount. But he adds that as the CFO of a public company, he won't try to predict future stock performance. Not even market experts can predict future market trends, he says.

On January 3 RADVision shares opened at $10.5, a long way down from its $60 peak in Nasdaq's heyday. Seligman relates the drop to general losses on the market. The companies worst hit were service providers, while RADVision mostly does business with enterprises. But the company is still affected by the general slump in technology shares, Seligman explained.

Based on the preliminary results the company released to investors on December 3, RADVision is also expected to meet forecasts on net profit. The company believes that net profit for the fourth quarter of 2000 will total $2 million or 9 cents to 10 cents per share, in line with the forecasts of Piper Jaffray and of

Salomon Smith Barney

, which set EPS at 9 cents.

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The company also announced on December 3 that it intends to pay off its debts to the Chief Scientist of the Ministry of Industry and Trade, from which the company has to date received loans. The company executive said that it will be paying back the loans in one payment rather than in several as it had been previously planned.

RADVision's one-time expense in respect of the Chief Scientist's loans will come to $3.75 million, and consequently the company is to post a net loss of $3.15 million or 7 cents to 8 cents per share.

Seligman said that the company had chosen to pay the debt in one payment in order to decrease the company's future expenses. In fact, already at the beginning of 2000 the company stopped asking for new loans from the Chief Scientist, and the funding the company received was in respect of old projects. The company had reached the conclusion that the Chief Scientist's involvement and requirements were unreasonable, and decided to pay the debt as part of the company's aim to detach itself from the Chief Scientist, Seligman explained.

Sunny view of 2001 too

RADVision believes that it will beat analyst forecasts in 2000, and hopes to report revenues in the range of $45.7 million to $45.9 million, and earnings of $3.8 million to $3.9 million.

Piper Jaffray's forecast for the whole of 2000 was $44.1 million.

The company is to release final results for the fourth quarter of 2000 on February 6, 2001.

It may be noted that a month ago,


(Nasdaq:PLCM) announced it intends to acquire

Accord Networks

(Nasdaq:ACCD), which is RADVision's rival in the IP-video conferencing equipment market.

Seligman rejects the possibility that this acquisition could affect RADVision in the short run. Indeed, most of the analysts covering the company do not believe that Polycom will affect orders from RADVision, at least in the short run. But since Polycom made its announcement, RADVision shares have lost 40%.