Radvision reports 2Q loss, revenue drop

Telepresense vendor Radvision (Nasdaq: RVSN), which last month revised its second-quarter guidance downward, this week reported revenues of $18.1 million for the quarter, down from $23.3 million a year ago, blaming the downturn on its difficulty in establishing a foothold for its video business unit in North America.

The company also reported a net loss of $8.2 million, or 44 cents per diluted share, on a GAAP basis, a leap from its net loss of $700,000, or 4 cents per diluted share, a year ago.

The company's revised forecast for the second quarter of 2011 was for revenues of approximately $18 million to $18.5 million and a net loss of 41 cents to 44 cents per diluted share on a GAAP basis.

"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," said Chief Executive Boaz Raviv. "We are moving immediately to remedy that and are committed to realizing tangible improvement as quickly as possible."

Raviv said Radvision's VBU saw strong year-over-year growth in EMEA, CALA and APAC, as well as a 35 percent 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," he said. "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."

The company's revenue was hit hard when Cisco bought Tandberg. Before the Tandberg acquisition, Cisco resold Radvision conferencing systems; that part of the business made up about 40 percent of Radvision's revenues.

The company said it expects revenue in the third quarter to fall to $19 million with a net loss of approximately $5.9 million, or 32 cents per diluted share, on a GAAP basis, and $5 million, or 27 cents per diluted share, on a non-GAAP basis. In the year-ago third quarter, the company had revenue of $24.5 million and net income of $300,000, or 2 cents per diluted share.

For more:
- see this release

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