IP-based video and voice system specialists

RadVision Ltd.

(Nasdaq:RVSN), today released its fourth quarter results for 2000, before trade opened on Wall Street. Although the company beat analyst sales and EPS forecasts, its management says it envisions far lower sales in 2001 than originally expected.

RadVision predicts its 2001 sales will grow by 50% to $68.9 million. This is bad news for investors and analysts who had forecast that company sales in 2001 would reach $86.9 million.

The firm's net profit is in line with an announcement it released last month. The RAD-Binat company posted earnings of $2.04 million, excluding one-time expenses, or 10 cents per share. This is one cent higher than the average Wall Street forecast.

In the course of its fourth quarter, RadVision posted a one-time expense of $3.66 million for a debt it paid to the Chief Scientist of the Ministry of Industry and Trade for grants it had received. RadVision decided to repay the debt in one payment instead of in installments as had been originally planned. The one-time expense translates into a loss of 9 cents per share, or losses of $1.6 million in its fourth quarter of 2000.

RadVision CFO David Seligman recently told TheMarker.com that the firm had decided to pay off its debt in order to decrease its future expenses. He explained that the company had found the Chief Scientist's demands unreasonable, and had decided to settle the debt and sever its ties with the Chief Scientist.

RadVision's revenues for the quarter total $45.9 million, which is in line with the upper range of its forecast released at the beginning of the month.

RadVision President and CEO Ami Amir today said that the company had fulfilled its growth strategy. He claimed that the future of communication lies in IP, and that RadVision is well positioned to take advantage of the market. He added that the company is ending its fourth quarter with $97 million in its coffers.

The company did not allude to its expected 2001 earnings in its financial reports, but it is hard to believe that RadVision's earnings will come close to the forecast EPS of 81 cents, or $18 million.