RADVISION Releases Second Quarter 2011 Financial Results

The well known provider of unified Visual Communications products over IP, 3G and IMS networks, Radvision (News - Alert) released its second quarter financial results. In the report, the company revealed that revenues for the second quarter of 2011 were $18.1 million, which is in line with the company’s revised forecast. Compared with $23.3 million in the second quarter of 2010, this signifies the operating loss of $6.4 million on a GAAP basis and $5.5 million on a non-GAAP basis. For the second quarter of 2010, the company reported an operating loss of $0.6 million on a GAAP basis and operating income of $0.6 million on a non-GAAP basis.

It should be noted that the company’s revised forecast for the second quarter of 2011, reported on July 5, 2011, was for revenues of approximately $18.0 million to $18.5 million and a net loss of $0.41 to $0.44 per diluted share on a GAAP basis, and $0.27 to $0.30 per diluted share on a non-GAAP basis.

In the press release, Radvision maintained that for the second quarter of 2011, its the Video Business Unit and Technology Business Unit proved to be revenue earners. The VBU gave $14.5 million in revenues while TBU gave $3.6 million in revenues. This compares with $19.2 million for the VBU and $4.1 million for the TBU reported in the second quarter of 2010.

The net loss for the second quarter of 2011 was $8.2 million, or $0.44 per diluted share, on a GAAP basis, and $5.4 million, or $0.29 per diluted share, on a non-GAAP basis.

The Company ended the second quarter of 2011 with approximately $101.3 million in cash and liquid investments. This marks a decrease of $8.8 million from March 31, 2011. The company used $7.3 million in operating activities, $1.2 million to repurchase 129,894 Company shares, and $0.6 million for capital expenditures. All these explain the decrease reflects. The company however received $0.3 million received from the exercise of options.

“Second quarter results were in line with our revised forecast, but not on-track with our original plan, mainly due to the performance of our VBU in North America, as previously reported. We are moving immediately to remedy that, and are committed to realizing tangible improvement as quickly as possible.

“Our VBU performed well in the rest of the world in the second quarter, with strong year-over-year growth in EMEA, CALA and APAC, and a 35% increase in our core, non-OEM revenues compared with the second quarter last year. To further accelerate our growth in the endpoint market, we recently expanded our end-to-end portfolio. Our second quarter also benefitted from very strong sales to service providers for cloud-based services and further successful expansion of our reseller channel. We will not be satisfied, however, until we are back on track with our growth plan,” Chief Executive Officer of Radvision Boaz Raviv commevnted in a statement.

Last year, Radvision Ltd. announced forging of strategic relationship with Microsoft (News - Alert) Corp. to deliver advanced integration to Microsoft's unified communication (UC) solutions. The relationship was announced at RADVISION's Global Partner Forum in October 2010 and highlighted in a keynote presentation by Warren Barkley, General Manager of the Lync Partner and Customer Group at Microsoft.