Videoconferencing systems maker Radvision Ltd. (Nasdaq: RVSN; TASE: RVSN) has bought high definition video conferencing technology for about $10 million from Italian company Aethra. Radvision also reported fourth quarter results today.
Revenue in the fourth quarter was $22.7 million, beating analyst estimates of $21.5 million.
On a non-GAAP basis, Radvision's net profit for the quarter was $4.4 million ($0.23 per share), an improvement over the $200,000 net loss ($0.01 per share) for the corresponding period of 2008. The 2009 figure handily beat analyst estimates of $0.17 for earnings per share (EPS).
Radvision also said today that it has reached an agreement to acquire selected assets of the Aethra group of companies (Aethra), of Ancona, Italy, including certain intellectual property and technology for high definition video conferencing endpoint systems.
The purchase price for the assets acquired is approximately 7 million euros in cash, and Radvison will assume about 3 million euros in debt. The transaction is expected to be accretive starting in the fourth quarter of 2010.
Radvision explained that the acquisition is "part of our strategy to replace lost revenues that will result from the Cisco-Tandberg transaction and position ourselves for the future.”
Radvision's total revenue for the fourth quarter consisted of $18.4 million for the networking business unit (NBU) and $4.3 million for the technology business unit (TBU) compared with $17.4 million for the NBU and $5.3 million for the TBU reported in the fourth quarter of 2008.
The results were better than Radvision's own guidance, which it issued on October 29. The company fourth quarter revenue of $21.5 million and non-GAAP net profit of $3.3 million or $0.17 per diluted share.
The company's guidance for the first quarter of 2010 is for revenue of approximately $20 million and a non-GAAP net loss of $800,000 or $0.04 per diluted share.
Radvision CEO Boaz Raviv said that the strong performance of the networking business unit was due to the response of channel and reseller partners and of the marketplace to its next generation products. "We believe this offers further evidence that we have regained our technology leadership position, which has been a major strategic focus."
Published by Globes [online], Israel business news - www.globes-online.com - on February 4, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010