Radvision revises Q1 guidance down after revenue from Cisco plummets

Looks like the, um, fallout, from Cisco's (NASDAQ:CSCO) acquisition of competitor Tandberg last year is starting to flow downhill. Video conferencing products maker Radvision (NASDAQ:RVSN) today cut its first quarter outlook, because revenue from Cisco is off 60 percent to about $2 million from the $5 million on which it had planned.

Radvision now says it is expecting first quarter revenue of $20.5 million to $21 million, down from the $24 million it forecast in February.

The company said it had expected Cisco revenues to decline progressively each quarter following Cisco's Tandberg deal, but "the decline in the first quarter of 2011 was much steeper than expected." Before the Tandberg acquisition, Cisco had been a reseller of Radvision conferencing systems; that part of the business made up about 40 percent of Radvision's revenues, according to Tech Trader Daily.

Radvision said it expects revenues from Cisco to continue near the baseline level of approximately $2 million on average per quarter for the remainder of 2011.

The good news? Radvision said revenues from its video business unit increased more than 55 percent over the first quarter of 2010 when revenues from Cisco are excluded from both periods.

"While the slippage in Cisco revenues was unfortunate, we have been successfully building our future beyond Cisco for the past several quarters and continued to make important progress through further technology development, our successful entry into the room conferencing market and channel expansion," said CEO Boaz Raviv. "We are confident we have the right strategy to drive future growth."

Radvision will provide full details for the first quarter of 2011 when it reports final results on May 5, 2011.

For more:
- see this release

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