Video conferencing solutions developer Radvision Ltd. (Nasdaq: RVSN; TASE: RVSN) today published its financial statements for the second quarter of 2009. The company switched to a GAAP-based profit, one quarter after switching to a non-GAAP net profit. However, its third quarter guidance is below analysts' forecasts.
RadVision posted $19.6 million revenue for the second quarter, down 5.8% from $20.8 million for the corresponding quarter of 2008. The analysts' consensus was $19.5 million revenue.
The RAD Data Communications Ltd. subsidiary launched new products during the second quarter, including a FullHD video conferencing product. RadVision CEO Boaz Raviv told "Globes", "Response to the products was amazing. After 18 months of investment, even industry analysts describe our products as the technology leaders. Our product enables anyone to hold a high definition video conference at the same price for all participants."
GAAP-based net profit was $400,000 ($0.02 per share), compared with a net loss of $3.9 million for the corresponding quarter. Non-GAAP net profit was $1.6 million ($0.08 per share) for the second quarter compared with a net loss of $2.2 million for the corresponding quarter. The company beat the analysts' consensus of non-GAAP earnings per share of $0.01.
RadVision's switch to profit was the result of cost cutting. The company is now waiting to see sales of its next-generation product to show up on its revenue line. "The new products should reach market in September. We've hooked up with Samsung, and we're working with powerful player who can change the entire video conferencing market," says Raviv.
Until the new products reach market, RadVision provided the same guidance for the third quarter that it gave for the second quarter. It predicts a GAAP-based net profit of $600,000 ($0.03 per share) and non-GAAP net profit of $1.8 million ($0.09 per share) on $20 million revenue. The analysts' consensus is earnings per share of $0.10 on $20.5 million revenue.
Second quarter cash flow was $1 million, and the company had $118.1 million in cash and cash equivalents at the end of June, $500,000 than at the end of March.
RadVision made no share buyback during the second quarter. CFO Adi Sfadia said, "After the offer to buy by Zohar Zisapel, we obtained legal advice to suspend the buyback."
RadVision's shareholders did not respond to Zisapel's offer to purchase, which had hoped would turn him into a minority controlling shareholder. He owns 24.9% of the company. "Because Zisapel owns nearly 25% of the company, we cannot buy shares, because that that would push him over the permitted holding threshold without an offer to purchase."
RadVision's share fell 3.7% at the opening on Nasdaq to $8.39.
Published by Globes [online], Israel business news - www.globes-online.com - on July 30, 2009
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