Tuesday, July 5, 2011

Bethel Finances: Radvision set to issue profit warning

www.bethelfinance.com

Sources inform "Globes" that conference call solutions company Radvision Ltd. (Nasdaq: RVSN; TASE: RVSN) is set to publish a profit warning. For the second successive quarter, the company has not been able to meet the guidance that it set for itself and revenue will be less than forecast, while the loss it predicted will be larger.

Radvision published a similar profit warning three months ago in the wake of lower than expected orders from Cisco (Nasdaq: CSCO). Radvision ended the first quarter of 2011 with a loss of $3.3 million.

Radvision had expected revenue of $22 million in the second quarter of 2011, 5.6% down on the corresponding quarter, and a loss of $3.2 million.

Radvision, headed by CEO Boaz Raviv, is going through a transition period. Until 2010, the company generated 40% of its orders from Cisco. But in 2009, Cisco acquired Radvision's competitor Tandberg and since the start of 2011 orders from Radvision have fallen off significantly. In an attempt to cope with the departure of Cisco, Radvision acquired Italian firm Aethra at the start of 2010 and has entered the conference call end user equipment market.

Radvision's share price closed ay $7.85 on Nasdaq yesterday, giving a market cap of $145.96 million. The share price was down 5.74% on the TASE this afternoon to NIS 25.13.

No comments:

Post a Comment